Financial year 2006 starts according to plan
Munich, 25 April 2006 – With a revenue increase of approximately 40 percent, telegate has successfully started the financial year 2006: In the first quarter the Group generated revenues of €47.2 million (Q1 2005: €33.8 million). As before, growth is mainly driven by International business, with revenues increasing from €5.9 million in the first quarter of 2005 to more than €18.6 million now. Domestic revenues also rose slightly from €27.9 million to €28.6 million compared to the previous year.
The development of the French business contributes above average to the growth of the telegate Group. The expansion of branded business there is, however, accompanied by one-off significantly higher advertising costs. With the Group, they rose from €4.7 million in the first quarter of 2005 to €16.1 million in the first quarter of 2006. As a consequence of the clearly increased advertising costs, the earnings before interest, taxes, depreciation and amortization (EBITDA) in the first quarter of 2006 fell to about €0.3 million (Q1 2005: €10.5 million). Though the positive growth of the gross profit that improved from €20.8 million in 2005 to €22.5 million in the first quarter of 2006 underlines the unaltered high profitability of the business.
telegate is able to self-finance its European expansion. Although the company has a negative free cash flow of minus €4.1 million (Q1 2005: €7.7 million) due to large investments in marketing, telegate still has excellent financial resources, with liquid assets of just under €48 million as per 31 March 2006 (Q1 2005: just under €42 million), with which it can continue to fully exploit growth potentials in Europe. The equity ratio is 46 per cent as at the close of the first quarter (Q1 2005: 48 per cent).
Press contact:
telegate AG
Claudia Strixner
Fraunhofer Str. 12a
82152 München-Martinsried
Tel.: 089/ 8954-1188
Fax: 089/ 8954-1189
E-Mail: claudia.strixner@telegate.com
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