ecotel makes strong start to 2024 financial year

• B2B segment records slight growth
• Total sales: EUR 28.1 million (previous year: EUR 28.6 million)
• Gross profit: EUR 8.1 million (previous year: EUR 8.1 million)
• Operating EBITDA: EUR 1.8 million (previous year: EUR 3.4 million)
• Roll-out of major new projects begins

Düsseldorf, 8 May 2024

The first quarter of 2024 went to plan. Sales in the ecotel Business Customers segment increased slightly to EUR 11.5 million (previous year: EUR 11.4 million). The major new orders that were concluded recently are being implemented as planned and are expected to lead to stronger sales growth in the ecotel Business Customers segment from the second quarter onwards. As expected, gross profit in this segment declined slightly to EUR 7.6 million in the first quarter of 2024 (previous year: EUR 7.7 million) due to the positive non-recurring effects of EUR 0.3 million in the same period of 2023. Adjusted for these effects, gross profit in the ecotel Business Customers segment increased by EUR 0.2 million.

Sales in the ecotel Wholesale segment declined year-on-year to EUR 16.6 million as forecast (previous year: EUR 17.2 million). Despite the lower level of sales, gross profit rose by EUR 0.1 million to EUR 0.5 million (previous year: EUR 0.4 million). This was due to the increased share of high-margin wholesale data services in the overall sales mix.

Operating EBITDA amounted to EUR 1.8 million in the first quarter (previous year: EUR 3.4 million) due to the forecast impact of initial investments for the implementation of major new projects. In addition to these initial investments, it should be noted that operating EBITDA in the same period of the previous year included income from the transfer of right-of-use assets for internet resources in the amount of EUR 1.4 million and the aforementioned gross profit effect of EUR 0.3 million. Adjusted for these effects, operating EBITDA increased slightly (EUR 1.8 million; previous year, adjusted: EUR 1.7 million). In light of the anticipated sales growth, we expect operating EBITDA to continue to increase as the year continues.

The operating result (EBIT) amounted to EUR 0.4 million in the first quarter. This represents a significant year-on-year decrease of EUR 5.6 million. After deducting all associated transaction costs, the sale of right-of-use assets for online resources in the first quarter of the previous year contributed around EUR 5.4 million to EBIT. Adjusted for these non-recurring effects, EBIT in the first quarter of 2024 was in line with the previous year.

After deducting depreciation and amortisation, which declined slightly as forecast to EUR 1.1 million (previous year: EUR 1.3 million), and taking account of net finance costs of EUR 0.0 million (previous year: EUR 0.4 million) and taxes of EUR 0.1 million (previous year: EUR -2.0 million), ecotel generated a net profit of EUR 0.3 million in the first quarter (previous year: EUR 4.5 million). This corresponds to earnings per share of EUR 0.08 (previous year: EUR 1.29).

As the year continues, the recently communicated strategic change and expansion of the Management Board will provide further support for the company’s growth path with its focus on cloud communication and smart broadband solutions for corporate customers (cloud & fibre).

The Management Board is maintaining its forecast for the 2024 financial year.
Specifically, the Management Board anticipates the following developments in 2024:
 

(EUR million)	Forecast for 2024
Consolidated sales	108 – 112
thereof ecotel Business Customers	48 – 52
thereof ecotel Wholesale	50 – 60
Gross profit	33 – 35
thereof ecotel Business Customers	31 – 33
thereof ecotel Wholesale	2 – 3
Operating EBITDA	9 – 10
thereof ecotel Business Customers	8 – 9
thereof ecotel Wholesale	~ 1
Consolidated net profit	> 2

About ecotel communication ag:

The ecotel Group (referred to hereinafter as “ecotel”) has been operating throughout Germany since 1998 and is established as a leading quality provider for business customers. With a focus on cloud & fibre, ecotel serves the two most important growth areas in the German telecommunications market.
Its parent company is ecotel communication ag, headquartered in Düsseldorf. ecotel and its subsidiary have around 225 employees in total. At present, ecotel provides more than 15,000 customers throughout Germany with a full range 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

For more information, go to www.ecotel.de