Düsseldorf, August 16, 2022

The first half-year 2022 was extremely positive for the Group. All operative segments developed as planned. Profitability in the most important segments received a sustainable boost and the financial strength of the Group improved substantially.

In June, ecotel transfered usage rights for Internet resources. After deduction of transaction costs, the result was a one-off effect of € 14.9 before taxes, or € 11.0 million after taxes. This one-off revenue is reported in the other operating income. While revenue and gross profit were therefore not affected, the effect on EBITDA, EBIT, consolidated profit and earnings per share was considerable. The figures reported in the following are generally adjusted to account for this one-off effect.

Consolidated revenue grew by € 17.3 million to € 58.9 million. This growth was achieved by the »ecotel Wholesale« segment with € 17.0 million and the »easybell« segment with € 1.3 million. The »nacamar« (€ -0.7 million) and »ecotel Business Solutions« segments (€ -0.3 million) developed according to plan in the first half-year.

This revenue growth with a simultaneous rise in earnings increased consolidated gross profit by € 2.1 million to € 23.9 million. This increase was possible primarily due to the positive developments at »easybell« (€ +1.6 million) and in the »ecotel Business Solutions« segment (€ +0.9 million).

Group EBITDA, without the aforementioned one-off effect, increased by € 1.5 million to € 9.5 million in the first half-year 2022. Here again, »easybell« (€ +1.1 million) and »ecotel Business Solutions« (€ +0.6 million) were the primary contributors. The scalability of the product range in these two segments is increasingly affecting the disproportionate EBITDA developments.

Taking into account the one-off effect, ecotel achieved EBITDA of € 24.4 million in the first half-year 2022. After deduction of depreciations, financial expenses, taxes and minorities, this results in consolidated profit totaling € 13.8 million, or EPS of € 3.94 (prev. year: € 0.52). Without the one-off effect, consolidated profit increased substantially by € 1.0 million to € 2.8 million and EPS by € 0.29 to € 0.81.

As a result of this profit growth the Group reported free cash flow of € 18.9 million (prev. year: € 4.9 million) and net financial assets totaling € 23.9 million (prev. year: € 5.2 million) in the first half-year. As a result of the high profit, equity likewise increased to € 40.6 million (prev. year: € 25.2 million) and the equity ratio to 53.9 % (prev. year: 46.4 %). The financial strength of ecotel has therefore received a substantial boost.

»ecotel Business Solutions« segment:

In this core segment of the Group there is, as expected, a slight decline in revenue, both in the half-year and in the quarterly analysis. Since the end of the last financial year a major customer no longer procures some services through ecotel. It has not yet been possible to compensate for this effect with growth in the new product areas. While new project orders have meanwhile been acquired, their effect on revenue will no be evident until sometime in the second half-year 2022.

The positive profit development that has been evident for several quarters now continued in the second quarter of this year. The increasing share of new products and the scalable system landscape are the causes of this sustainable development. The product range of »ecotel Business Solutions« means that the segment is very well positioned in the constantly growing markets for cloud services (cloud telephony and UCC solutions) and in broadband expansion (especially the expansion of fiber optic connectivity). The focus is on acquisition of new customers, with the offer of both products and solutions.

»easybell« segment:

At »easybell« the revenue growth of the past quarters continues, together with the rise in productivity. High scalability and steady customer growth have been clearly manifest in this segment for years. The focus on user-friendly, customized products for small and mid-sized business customers and continued successful marketing of products also for private customers are the basis for the successful strategy of »easybell«. In addition, »easybell« has taken the first steps toward internationalization.

Forecast:

The continuing conflict in Ukraine and the related incidents as well as the global economic effects of this conflict, as well as the restrictions of global supply chains still resulting from the COVID-19 pandemic, have had only minor consequences for ecotel so far. As a result of product demand, our customers’ solvency and the performance of our upstream suppliers, there have been no restrictions in our business operations. However, rising energy costs, especially for electric power for operation of the data center infrastructure and for special end customer devices, have caused higher prices and longer delivery times.

Taking into account currently known and foreseeable developments, the Management Board confirms the unchanged forecast for financial year 2022 as stated in the 2021 Annual Report. Without the aforementioned one-off effect, the Management Board continues to expect EBITDA of € 20 to 22 million from business operations.

Revenue in the ecotel Wholesale segment is expected to be substantially higher than the forecast corridor of € 20 to 25 million. As a result of the lower margin in this segment, however, this will have only minor effects on the other key figures.

The detailed forecast can be found in the group management report for financial year 2021 in the forecast, opportunities and risk report.

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 55,000 data connections and more than 440,000 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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