DGAP-News: ecotel communication ag: Record results in financial year 2021 - further increases in revenue and earnings expected for 2022

• Core segments B2B and easybell continue on growth course
• EBITDA increases by 55 % to € 18.1 million (prev. year: € 11.7 million)
• Free cash flow more than doubled to € 10.5 million (prev. year: € 4.4 million)
• Net financial assets more than quadrupled to € 9.6 million (prev. year: € 2.3 million)
• Consolidated surplus nearly quintupled to € 4.8 million (prev. year: € 1.0 million) and EPS to € 1.36 per share (prev. year: € 0.28)
• EBITDA increased by 20 % in 2022 - Forecast: € 20 to 22 million
• Dividend proposal: € 2.25 / share (including special dividend of € 1.55 / share)

Düsseldorf, March 10, 2022

Business development and key figures


The ecotel Group concluded financial year 2021 with record results. In addition, all operative key figures and controlling indicators increased substantially in comparison with the previous year.

Consolidated revenue, at € 95.9 million (prev. year: € 98.3 million), was deliberately below the € 100 million threshold set down in section 35 para. 5a of the Telecommunications Act, which protects the group from any retroactive regulatory decisions on the fees of market-dominating telecommunications providers. Revenue in the high-margin segments »ecotel Business Solutions« (+4 % to € 46.3 million) and »easybell« (+16 % to € 25.0 million) continued to develop positively. Revenue developed according to plan in the »ecotel Wholesale« and »nacamar« segments.

Gross profit increased by € 8.0 million (+ 21 % to € 45.7 million), especially due to the positive development in the segments »ecotel Business Solutions« with € 28.5 million (prev. year: € 23.9 million) and »easybell« with € 14.6 million (prev. year: € 11.2 million).

EBITDA increased by 55 % to € 18.1 million (prev. year: € 11.7 million). In addition, the scaling effects in the »ecotel Business Solutions« segment are becoming more visible. This made it possible to nearly double EBITDA for a total of € 8.6 million (prev. year: € 4.4 million). The high-growth »easybell« segment likewise continued the previous year's positive development, so that EBITDA further increased by € 2.6 million to € 8.5 million. EBITDA in the »ecotel Wholesale« and »nacamar« segments developed according to plan with € 0.5 million respectively.


Taking into account the expected decrease in depreciations, the financial result, taxes and the minority share in the earnings, this results in a consolidated surplus of € 4.8 million (prev. year: € 1.0 million) and earnings per share (EPS) of € 1.36 (prev. year: EUR 0.28).


The substantial improvement in the earnings situation also had a positive effect on the financial and assets situation. Free cash flow of € 10.5 million (prev. year: € 4.4 million) and about € 3 EUR per share resulted in an increase in net financial assets to € 9.6 million (prev. year: € 2.3 million).

Dividend proposal of € 2.25 per share


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


Market strategies of the single segments


As a basis for the medium-term forecast the ecotel Management Board has also adjusted the strategic positioning of the segments as follows:

ecotel Business Solutions


The ecotel Business Solutions segment recently increased both revenue and earnings - despite the Covid-19 pandemic. Parallel to the scalable, successful transactions with increasingly standardized voice and data products, ecotel expanded the portfolio during the course of the year to include innovative cloud services. Cloud telephony, collaboration solutions, SD-WAN connectivity and the integration of large cloud platforms will supplement the future portfolio of products and solutions and will contribute to further growth beyond the core business. This will allow ecotel to specialize as a comprehensive solution provider for mid-sized business customers. The focus will be on customer satisfaction and high-quality products - ecotel's goal is to become the leading provider of quality business solutions in Germany.

easybell


The easybell segment again significantly increased revenue and earnings in financial year 2021. In addition to intelligent product bundles with telephony and data connections as well as the cloud telephone system, another milestone was the successful introduction of an MS Teams connector. Likewise, easybell succeeded in expanding the business model established in Germany beyond the national borders, and now operates internationally as easybell.com. The focus of further development will be on sustainable growth, both in the domestic market and, in the future, abroad.

ecotel Wholesale


In the ecotel Wholesale segment, in addition to international trading with telephone minutes, the focus is now being expanded to broader cooperations with international carriers and service providers, which purchase data lines and other services for their globally operating customers in Germany via ecotel. The wholesale segment will therefore increasingly market additional modules from the ecotel portfolio and intensify business relations at the international level.

nacamar


nacamar GmbH will continue to maintain the strategic position as a reliable platform provider for audio streaming and to expand 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


Taking into account the previous year's business development and the aforementioned strategic alignments of the segments and the opportunities and risks presented in the group management report, the Management Board makes the following forecast for 2022:


Altogether, the Management Board expects a further increase in gross profit and continued growth of the group EBITDA in a corridor form € 20 to 22 million and a further increase of consolidated profit in financial year 2022.

Medium-term planning:


Taking into account the current information available about risks and opportunities, the Management Board expects for the ecotel Group, also beyond financial year 2022, an annual increase in revenue of about 5 %, also for the first time above the € 100 million limit of the Telecommunications Act in effect since 2018, as well as an increase in gross profit and EBITDA. In addition, the Management Board assumes that the key figures and objectives of the sustainable financial strategy explained in the group management report will be maintained, also beyond financial year 2022.


For further details please refer to the group management report at https://ir.ecotel.de/websites/ecotel/German/3100/finanzberichte.html.


About ecotel communication ag:

The ecotel Group (hereinafter »ecotel«), operating 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 holdings, ecotel has a total of about 300 employees. Currently ecotel serves more than 50,000 customers nationwide, providing 50,000 data connections and more than 360,000 voice channels.

Note:
This publication is not an offer for the sale nor an invitation for the purchase or subscription of securities. This publication is not a securities brochure. This publication and the information contained therein are not intended for direct or indirect dissemination to or within the United States of America, Canada, Australia or Japan.

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