Sales and operating EBITDA continue to grow as planned

• Total turnover: 28.8 million EUR (previous year: 26.6 million EUR)
• Sales in the business customer segment: 11.8 million EUR (previous year: 11.6 million EUR)
• Wholesale segment sales: 17.0 million EUR (previous year: 15.0 million EUR)
• Operating EBITDA: 1.9 million EUR (previous year: 1.7 million EUR)

Düsseldorf, November 6th, 2024

In the first nine months of 2024, the Group was able to increase its sales as planned to 85.6 million EUR (previous year 78.2 million EUR) and achieved a stable gross profit of 24.1 million EUR (previous year 24.1 million EUR). Operating EBITDA – burdened as planned by the start-up costs of major projects – reached 5.4 million EUR (7.0 million EUR in the previous year).

The third quarter 2024 was successful and in line with expectations. Sales increased by 2.2 million EUR to 28.8 million EUR. In the ecotel business customers segment, sales increased by 0.2 million EUR to 11.8 million EUR compared to the previous year, supported by initial sales from the major projects currently being implemented. The ecotel Wholesale segment recorded an increase in sales by EUR 2.0 million to EUR 17.0 million. Gross profit also improved slightly by 0.2 million EUR to 8.1 million EUR.

Operating EBITDA increased by 0.2 million EUR to 1.9 million EUR in the third quarter compared to the same quarter of the previous year. This increase consisted of 0.1 million EUR in the ecotel business customers segment (1.5 million EUR) and 0.1 million EUR in the ecotel wholesale segment (0.4 million EUR). While gross profit remained stable overall, income from the purchase of advance services amounting to EUR 0.5 million and additional expenses for a license agreement (EUR 0.2 million) for data center components were largely responsible for this development.

In the third quarter, one-off expenses from the stock option plan of 2020 in the amount of EUR 0.7 million as well as reorganization and restructuring expenses in the amount of EUR 0.3 million, as described in the annual report 2023 were deducted from operating EBITDA. These targeted investments as well as scheduled depreciation of EUR 1.1 million (previous year: EUR 1.1 million) led to a slight decline in consolidated net profit, which, despite the increase in operating EBITDA in the third quarter of 2024 stood at EUR -0.1 million (previous year: EUR 0.4 million).

While in the financial year 2023, income from the transfer of usage rights to Internet resources was realized in the first half of the year, in the current financial year this income is expected to be achieved in the fourth quarter as planned.

Free cash flow for the first nine months of 2024 amounted to -2.3 million euros, which is due to planned investments in the expansion of the cloud and fiber product platforms as well as upfront investments in the major projects currently being implemented. In addition, one-off expenses in connection with the 2020 stock option plan were taken into account. At the beginning of the third quarter, dividends amounting to EUR 1.6 million (0.47 EUR per share) were distributed. As a result, 2024 financial liabilities amount to EUR 1.2 million as of September 30.

The Management Board confirms the forecast for the financial year 2024 as set out in the forecast of the annual report 2023. Sales in the ecotel Business Customers segment are expected to reach the lower end of the corridor of 48 to 52 million EUR, while sales in the ecotel Wholesale segment are expected to be above the corridor of 50 to 60 million EUR.

 

(in EUR m)	2023 Q 3	2024 Q 3
Group sales	26.6	28.8
of which ecotel business customers	11.6	11.8
of which ecotel Wholesale	15.0	17.0
Gross profit	7.9	8.1
of which ecotel business customers	7.5	7.5
of which ecotel Wholesale	0.5	0.6
Operating EBITDA	1.7	1.9
of which ecotel business customers	1.4	1.5
of which ecotel Wholesale	0.3	0.4
Consolidated net income	0.4	-0.1

(in EUR m)	2023 01-09	2024 01-09	Forecast 2024
Group sales	78.2	85.6	108 – 112
of which ecotel business customers	34.2	35.0	48 – 52
of which ecotel Wholesale	44.0	50.6	50 – 60
Gross profit	24.1	24.1	33 – 35
of which ecotel business customers	22.8	22.6	31 – 33
of which ecotel Wholesale	1.3	1.5	2 – 3
Operating EBITDA	7.0	5.4	9 – 10
of which ecotel business customers	6.2	4.5	8 – 9
of which ecotel Wholesale	0.8	0.9	~ 1
Consolidated net income	7.1	0.6	> 2

About ecotel communication ag:
The ecotel Group (hereinafter referred to as "ecotel") has been operating nationwide since 1998 and has established itself as one of the leading quality providers for business customers. ecotel serves the two most important growth areas in the German telecommunications market with its focus on "cloud & fiber".
The parent company is ecotel communication ag, based in Düsseldorf. Including its subsidiary, ecotel has around 225 employees. Ecotel currently serves more than 15.000 customers nationwide with a full-service offering of cloud and broadband services.

Note:
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Investor Relations

ecotel communication ag
Investor Relations
+49 (0) 211-55 007 740
E-mail: investorrelations@ecotel.de

Further information is available on the Internet at www.ecotel.de