Ecotel communication ag: Record results for the financial year 2021 – further increases in revenues and profits expected for 2022

DGAP-News: ecotel communication ag / Key word(s): Annual report

ecotel communication ag: Record results for financial year 2021 – further revenue and profit increases expected for 2022

10.03.2022 / 08:00
The issuer is solely responsible for the content of this announcement.

  • B2B and easybell key segments continue to grow
  • EBITDA increases by 55% to ? 18.1 million (previous year: 11.7 million?)
  • Free cash flow more than doubled to ? 10.5 million (previous year: 4.4 million?)
  • Net financial assets more than quadrupled to reach ? 9.6 million (previous year: 2.3 million?)
  • Consolidated surplus almost quintupled to ? 4.8 million (prior year: ? 1.0 million) and EPS at ? 1.36 per share (previous year: ? 0.28)
  • EBITDA up 20% in 2022 – Forecasts: ? 20 to 22 million
  • Dividend proposal: ? 2.25 / share (including exceptional dividend of 1.55? / share)

Dusseldorf, March 10, 2022

Business development and key figures

the Ecotel group closed the 2021 financial year with record results. In addition, all operational key figures and control indicators increased significantly compared to the previous year.

Consolidated turnoverat ? 95.9 million (previous year: 98.3 million euros), was deliberately below the ? Threshold of 100 million fixed in article 35 al. 5a of the Telecommunications Act, which protects the group from any retroactive regulatory decision on the tariffs of market-dominant telecommunications providers. Revenue in high-margin segments »Ecotel Business Solutions (+4% to ? 46.3 million) and »easybell (+16% to ? 25.0 million) continued to evolve positively. Turnover developed according to plan »ecotel Wholesaler« and »nacamar« segments.

Gross profit increased by? 8.0 million (+21% at ? 45.7 million), in particular thanks to the positive evolution of the segments »Ecotel Business Solutions with ? 28.5 million (previous year: 23.9 million euros) and »easybell with ? 14.6 million (previous year: 11.2 million euros).

EBITDA increased by 55% to ? 18.1 million (previous year: 11.7 million euros). In addition, scale effects in the »Ecotel Business Solutions segment become more visible. This almost doubled EBITDA for a total of ? 8.6 million (previous year: 4.4 million euros). The strong growth »easybell« segment also continued the positive development of the previous year, so that EBITDA further increased by ? 2.6 million to ? 8.5 million. EBITDA in the »ecotel Wholesaler« and »nacamar« segments developed according to the plan with ? 0.5 million respectively.

Given the expected decline in depreciation, financial income, taxes and the minority share in the result, this translates into a consolidated surplus of ? 4.8 million (previous year: 1.0 million euros) and earnings per share (EPS) of ? 1.36 (previous year: EUR 0.28).

The significant improvement in the profit situation also had a positive effect on the financial and asset situation. Free movement of capital of ? 10.5 million (previous year: 4.4 million euros) and on ? 3 euros per share led to an increase in net financial assets for ? 9.6 million (previous year: 2.3 million euros).

Dividend proposal of ? 2.25 per share

This positive development also confirms that the strategic realignment and growth investments of recent years are bearing fruit. Shareholders will now be rewarded for their confidence in the ecotel share. The Management Board and the Supervisory Board have therefore decided to propose an ordinary dividend of ? 0.70 / share (> 50% of EPS) plus an exceptional dividend of ? 1.55 / share, for one total dividend of ? 2.25 per eligible share.

Market Strategies of Individual Segments

As a basis for the mid-term forecast, the ecotel board also adjusted the strategic positioning of the segments as follows:

Ecotel Business Solutions

The ecotel Business Solutions segment has recently increased both revenue and profit – despite the Covid-19 pandemic. Along with scalable and successful transactions with increasingly standardized voice and data products, ecotel expanded its portfolio during the year to include innovative cloud services. Cloud telephony, collaboration solutions, SD-WAN connectivity and integration of large cloud platforms will complement the future product and solution portfolio and help drive further growth beyond the core business. This will enable ecotel to specialize as a complete solution provider for medium-sized business customers. The focus will be on customer satisfaction and high quality products – ecotel’s goal is to become Germany’s leading provider of quality business solutions.

easybell

The easybell segment again significantly increased its revenues and profits in the 2021 financial year. In addition to the smart product bundles with telephony and data connections as well as the cloud phone system, another milestone was the successful introduction of an MS Teams connector. Likewise, easybell has succeeded in extending the business model established in Germany beyond national borders and now operates internationally under the name easybell.com. Further development will focus on sustainable growth, both in the domestic market and in the future abroad.

wholesale ecotel

In the ecotel Wholesale segment, in addition to the international trade in telephone minutes, the focus is now on broader cooperations with international operators and service providers, who purchase data lines and other services for their customers operating worldwide in Germany via ecotel. The wholesale segment will therefore market more and more additional modules of the ecotel portfolio and will intensify business relations on an international level.

nacamar

nacamar GmbH will continue to maintain its strategic position as a reliable platform provider for audio streaming and to develop partnerships and service contracts with radio and broadcasting institutions.

Forecast for 2022: EBITDA will continue to increase in a corridor from? 20 to 22 million

Given the evolution of the activity of the previous year and the strategic alignments of the aforementioned segments as well as the opportunities and risks presented in the group’s management report, the Management Board formulates the following forecasts for 2022:

Overall, the board expects further increase in gross margin and the continued growth of group EBITDA in the form of a corridor ? 20 to 22 million and another increase in consolidated profit during the 2022 financial year.

Medium-term planning:

Taking into account the currently available information on risks and opportunities, the board of directors expects for the ecotel group, also beyond the financial year 2022, an annual increase in income of around 5%, also for the first time over the ? limit of 100 million of the telecommunications law in force since 2018, as well as an increase in gross margin and EBITDA. In addition, the board of directors assumes that the key figures and the objectives of the sustainable financial strategy explained in the group management report will be maintained, also beyond the financial year 2022.

For more details, please see the group management report at https://ir.ecotel.de/websites/ecotel/German/3100/finanzberichte.html.

About ecotel communication sa:
The ecotel group (hereinafter “ecotel”), present throughout Germany since 1998, specializes in the marketing of IT and telecommunications solutions in various segments. The parent company is ecotel communication ag with headquarters in Düsseldorf. Including its subsidiaries and holding companies, ecotel has a total of approximately 300 employees. Currently, ecotel serves over 50,000 customers nationwide, providing 50,000 data connections and over 360,000 voice channels.

To note:
This publication does not constitute an offer to sell or an invitation to purchase or subscribe for securities. This publication is not a securities brochure. This publication and the information it contains are not intended for direct or indirect distribution to or within the United States of America, Canada, Australia or Japan.

Investor Relations
ecotel communication ag
Investor Relations
+49 (0) 211-55 007 740
Email: [email protected]

For more information, visit www.ecotel.de

10.03.2022 Broadcast of a Corporate News, transmitted by the DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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