Unabated growth dynamism – earnings forecast slightly exceeded
Munich, March 8, 2007 – telegate Group closes fiscal year 2006 with a significant plus in sales. The Group records a positive sales and earnings performance especially for the second half of the year, and even manages to surpass its own forecast for that period. The proposal for a dividend payment on the preceding fiscal year is to follow last year’s level of 0.65 Euro per share. “With 2006 we see an eventful year full of intensive competition come to a close” explains Dr. Andreas Albath, CEO of telegate AG, “and we are proud of the national and international successes we achieved in this year of competition. For 2007 we have set ourselves once more ambitious targets” says Albath.
Annual profit 2006
In 2006, telegate generated an annual net income after taxes of 6,0 million Euro (fiscal year 2005: 27.1 million Euro). Sales in the year under review totaled 178.9 million Euro, a plus of 19 percent on the year before (fiscal year 2005: 150.1 million Euro). Foreign business operations proved to be the most dynamic growth drivers. With sales up by about 80 percent, today’s operations in Italy, Spain and France contribute 63.3 million Euro (fiscal year 2005: 34.9 million Euro) or around a third of telegate Group’s total sales (fiscal year 2005: 23 percent). At 115.6 million Euro, the segment Germany/Austria recorded sales on a par with last year’s level (fiscal year 2005: 115.2 million Euro). Earnings before interests, taxes, depreciation and amortization (EBITDA) for fiscal year 2006 came to 17.0 million Euro (fiscal year 2005: 37.9 million Euro). Advertising spendings for building up the brand in France were a burden on profitability especially during the first half of the year. At 21.5 million Euro the EBITDA for the second half year of 2006, however, even exceeded telegate’s own expectations and could grow significantly with 35 percent compared to the second half year of 2005 (Second Half Year 2005: 16.0 million Euro). As of December 31, 2006, the company held liquid assets of 18.7 million Euro (fiscal year 2005: 51.4 million Euro) with an unchanged equity ratio of 50 percent (31 December 2005: 50 percent).
Dividend payment
As part of its long-term oriented dividend policy the Management and Supervisory Board will propose payment of a dividend of 0.65 Euro per share at the annual shareholders’ meeting on May 9, 2007. This will be exactly the same sum of 13.6 million Euro paid out as dividend in the year before. Explaining their decision, Dr. Andreas Albath notes, “We are signaling reliability to our shareholders with this dividend continuity and are giving a clear indication of our optimistic outlook for the future.”
Business performance and outlook 2007
The business strategy of telegate essentially rests on two pillars: extending the product portfolio for private and business customers as well as growing through the expansion in foreign markets. telegate made substantial progress on both fronts over the last year. “While the focus of investments in 2006 had been on developing the foreign business, in the current fiscal year we want to concentrate particularly on developing the business in the already existing markets”, explains Dr. Andreas Albath the company’ strategic focus. Unchanged telegate is expecting a significant increase in EBITDA at a level of around 50 million Euro for fiscal year 2007.
As the first German provider, telegate has made a targeted effort to transfer the directory assistance and brand competence of its ‘11880’ number to the modern information channels Internet, SMS and mobile devices. Already today therefore the company provides directory assistance in premium quality and across media channels to optimally meet changing consumer demand. By concluding strategic cooperations and acquisitions, the company further strengthened its core business of classic telephone directory assistance in 2006 and, in spite of a harsher competition, managed to extend its market share to 37 percent. As market expert for information services, telegate’s fast, comprehensive and correct provision of information generates value added for end customer and simultaneously provides a basis for value added to business customers. “They increasingly appreciate the offer of specific and targeted advertisement opportunities, which for us spell out as an additional source of revenue”, says Dr. Albath.
Growth dynamism, on the other hand, continues to be displayed by the foreign business operations. In the already consolidated markets of Italy and Spain, telegate grows in 2006 and manages to double its operative earnings. This offers the company an excellent platform for the ongoing expansion of its business model. As the youngest foreign market in which telegate Group operates, France will focus over the coming months on strengthening the company’s market position whilst simultaneously keeping a keen eye on the profitability of the business field.
Press contact
telegate AG
Claudia Strixner
Head of Public Relations
Fraunhofer Str. 12a
82152 Munich-Martinsried
Tel.: 089/ 8954-1180
Fax: 089/ 8954-1189
E-Mail: presse@telegate.com
www.telegate.com
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