Munich, July 31, 2008 – The sales and earnings position of telegate AG developed better over the first six months of fiscal year 2008 than anticipated by the company. The specialist for Local Search managed to stabilize consolidated sales on last year's level, which was mainly due to internal and external growth of the new business segment Media. In addition, the profitability of telegate group improved positively compared to the decreasing trend during the first quarter of the reporting period. The half-year annual financial statement of telegate AG for the first time includes the consolidated figures of klickTel AG.
Sales: growing advertising sales balancing core business weakness
Consolidated sales of telegate AG amounted to 86.4 million Euro in the first six months of 2008, as compared to 87.5 million Euro to the previous year. Of these, 79.7 million Euro were generated by the core business (-8 percent), which is now made up of the Voice Directory Assistance and the software segment of klickTel AG. telegate AG generated already a total of 8 percent of group sales, or 6.7 million Euro, through the dynamically growing advertising sales business. During the second quarter group sales increased year-on-year from 43.5 million Euro to 46.7 million Euro.
Earnings situation: strong EBITDA growth in second quarter
Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) for the telegate group totaled 25.1 million Euro after the first six months of the current fiscal year and were thus 7.2 percent up on the same figure of the year before at 23.4 million Euro. Second quarter EBITDA came to 16.6 million Euro, which is a plus of around 33 percent compared with the same period the year prior. Adjusted by one-time expenses incurred for the acquisition and operative integration of klickTel AG, to the amount of 1.4 million Euro, as well as the one-time income from the data cost litigation of 5.5 million Euro, EBITDA amounts to 20.9 million Euro, which is also up on the previous year (Adjusted EBITDA 2007: 20.3 million Euro). The period's net income after taxes per 30th June 2008 stood at 16.0 million Euro. The same financial figure had totaled 15.6 million Euro the year before.
Notwithstanding the cash-outs for the acquisition and integration of klickTel AG, telegate AG managed to consolidate its strong financial position still further. As of reporting date, 30th June 2008, the company held net liquid assets to the amount of 38.1 million Euro (previous year 26.5 million Euro). The equity ratio stood at 49.9 percent as against the 54.0 percent recorded the year before.
Segment performance: predominantly positive
The segment Germany/Austria managed to expand its volume of business during the reporting period by 3.9 percent to 58.8 million Euro. Above all, this was due to the strong organic growth seen in the new business segment advertising sales, as well as the first-time consolidation of the klickTel sales, which became effective as of 1st of April 2008. The advertising sales business generated already 17 percent of total sales during the second quarter. EBITDA for the first six months climbed by 1.7 percent from last year's comparative period to 23.5 million Euro. This earnings performance was essentially driven by lower marketing expenses and the extraordinary income from a positive data cost verdict.
The segment Italy/Spain continued to slightly improve its sales position during the first half year of 2008: Thus, sales were up by 2.4 percent to 19.9 million Euro. On the other hand the segment's profitability declined. Higher personnel costs in Italy, triggered by the changing labor laws for Inbound Call Centers, were a key factor in bringing down the EBITDA by 1.6 million Euro to a total of 1.9 million Euro for the first half year 2008.
In France the company generated sales of 7.7 million Euro during the first six months of the current fiscal year, which is 3.7 million Euro less than the year before. To compensate for this development telegate is currently expanding its online product and working with great urgency together with the sales partner Comareg to roll out the advertising sales business. Due to reduced expenses for marketing the company's EBITDA for the first half year recovered from -3.1 million Euro to -0.2 million Euro.
Outlook 2008: EBITDA forecast upgraded to 30-35 million Euro
Given the strong first half year performance in the key financial figures for 2008 and in expectation of a generally positive development in 2008, telegate's management is upgrading its EBITDA forecast from the previous 30 million Euro to 30-35 million Euro. This increase still excludes the one-time effects incurred from the integration of klickTel AG and those stemming from the data cost litigation.
Operatively the coming months will be concentrating above all on a joint appearance on the market following the acquisition of klickTel AG. This will be in the form of telegate Media. Another focal point will be on the utilization of market chances offered by the Local Search segment. Both the online product as well as the business advertising sales segment shall be continually expanded throughout the group, so that the new business segment will make a significant contribution to sales and earnings in the mid-term.
Press Contact:
Joerg Kiveris
telegate AG
Head of Public Relations
Fraunhofer Strasse 12a
82152 Munich-Martinsried/Germany
Phone: +49-89/ 8954-1188
Fax: +49-89/ 8954-1189
E-Mail: presse@telegate.com
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