Corporate | 12 March 2009 08:04
telegate AG / Final Results/Dividend
Release of a Corporate News, transmitted by DGAP - a company of EquityStory
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* The new business area Media shows a dynamic growth and already generates
10.6 percent of group sales
* EBITDA before one-time effects: with EUR 40.2 m almost stable
compared to the previous year
* Dividend proposal: unchanged EUR 0.70 per share
* EBITDA-forecast 2009: from EUR 32 m to EUR 37 m
Munich, March 12, 2009 - In spite of the financial and economic crisis,
telegate AG both achieved and surpassed the objectives set in the fiscal
year 2008. Group sales of the multichannel-provider of local search
increased by 3.2 percent to EUR 178.8 m, in particular due to the strong
growth in the business area Media. Earnings before interest, taxes,
depreciation and amortization (EBITDA) before one-time effects in the
amount of EUR 40.2 m are slightly above the upper end of the guidance of
EUR 35 m to EUR 40 m which was last raised in September. All international
segments made a positive contribution to earnings for the first time. The
company expects a slightly declining profit dynamic for the current fiscal
year 2009.
The Media segment achieved sales in the amount of EUR 18.9 m compared to
EUR 2.8 m in the fiscal year 2007. This emphasizes the progress of the
company with regard to the transformation of the business model to a
directory assistance provider financed by advertising. The classic
directory assistance business generated EUR 159.8 m compared to EUR 170.4 m
in the previous year and thus compensated the expected market decline above
expectations.
EBITDA before one-time effects almost at previous year's level
EBITDA of the telegate group amount to EUR 43.3 m in the fiscal year 2008
and thus this is below the previous year's figure of EUR 48.4 m. However,
special items are included in this financial figure: one-time income from a
positive decision with regard to a data cost law suit and one-time expenses
for the integration of telegate MEDIA AG are included in the earnings for
2008 as well as one-time income from a lower provision for risks of data
cost law suits in the previous year. EBITDA adjusted by these one-time
effects were almost at the same level with EUR 40.2 m compared to the
previous year's figure of EUR 40.9 m. The group's annual net earnings after
taxes decreased from EUR 33.6 m in the previous year to EUR 24.3 m and EUR
1.15 per share respectively due to significantly increased expenses for
income taxes in particular. The company's management and supervisory board
propose to the shareholders' meeting to adhere to the continuous dividend
policy and to distribute an unchanged dividend of EUR 0.70 per share to the
shareholders.This corresponds to a dividend yield above average of approx.
11 percent relating to the closing date.
Financial position: solid financial funding secures scopes for action
The telegate group is completely free from debt by the closing date 2008
and considers itself to be financially well prepared in a more difficult
refinancing environment. Liquid assets of the company significantly
recovered again by the closing date and amount to EUR 53.5 m (2007: EUR
66.8 m) after the payment of the purchase price for telegate MEDIA AG
(former klickTel AG) and the dividend payment for the fiscal year 2007. In
addition, the company stabilized its equity capitalization on a high level:
the equity ratio was 52.7 percent (2007: 56.7 per cent) by December 31,
2008.
All segments with positive contributions to earnings for the first time
The share in sales of the segment Germany/Austria in group sales increased
to approx. 70 percent. Segment's sales amounted to EUR 124.3 m in the
fiscal year 2008 compared to EUR 112.8 m in the previous year. The
advertising sales business was the main sales driver, in particular. This
business area contributed to the higher business volume with EUR 18.5 m by
both external growth and a significant organic growth and already generated
approx. 15 per cent of the segment sales. Without the acquisition of
telegate MEDIA AG the decline in sales would have amounted to approx. 3
percent. EBITDA of the segment amounted to EUR 37.7 m (previous year: EUR
44.4 m). Slightly declined earnings are the result in the amount of EUR
34.6 m compared to 2007 (EUR 36.9 m) without taking one-time effects into
account.
Sales in the segment France with a very competitive market environment and
a considerably declining market for the classic telephone directory
assistance business decreased to the amount of EUR 14.7 m, which was
significantly below the previous year's sales of EUR 20.8 m. On the other
hand, the segment went into the black for the first time since the
affiliation to the telegate group due to lower advertising expenses and an
optimization of the cost structure: EBITDA improved from EUR -2.9 m to EUR
0.4 m.
Revenues of the segment Italy/Spain remained almost unchanged with
EUR 39.8 m compared to the previous year (EUR 39.7 m) in spite of the
declining classic directory assistance business. The declining call volume
could be compensated in Spain for the most part by higher sales per call as
well as by the first revenues of advertising sales. Earnings of the segment
on a EBITDA-basis decreased from EUR 6.9 m to EUR 5.2 m. Higher personnel
costs and higher expenses for legal disputes in connection with the
prohibition by law in Italy to use so-called 'project contracts of
employment' for inbound-call center were one of the main reasons for this
development.
Outlook: transformation of business model remains in strategic focus
Considering the difficulty of drawing reliable business projections in the
current economic environment, for the current fiscal year 2009 the
management keeps the assumption of a further declining trend in the classic
directory assistance business and a continuing growth trend in the
advertising sales business.
Thus the company foresees a slightly declining dynamic on the profit side,
due to the decline of the high-margin directory assistance business only
partially compensated yet by the growth of the Media-business. Aiming to
offset this trend telegate will focus on further cost optimization actions
in order to secure the investment scope for the growth of the
Media-business.
All in all, the company expects an EBITDA before one-time effects in a
range of EUR 32 m to EUR 37m for the fiscal year 2009.
Joerg Kiveris
telegate AG
Head of Public Relations Department
Fraunhofer Str. 12a
82152 Planegg-Martinsried near Munich
GERMANY
Phone: +49 (89) 8954-1188
Fax: +49 (89) 8954-1189
E-mail: presse@telegate.com
12.03.2009 Financial News transmitted by DGAP
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Language: English
Issuer: telegate AG
Fraunhofer Str. 12a
82152 München-Martinsried
Deutschland
Phone: +49 089 - 89 54 0
Fax: +49 089 - 89 54 10 10
E-mail: info@telegate.de
Internet: www.telegate.com
ISIN: DE0005118806
WKN: 511880
Indices: Prime All Share
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Hannover, Düsseldorf, Hamburg, München, Stuttgart
End of News DGAP News-Service
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