Corporate | 8 March 2011 08:00

telegate AG’s preliminary figures for the fiscal year 2010: annual profit guidance met

telegate AG / Key word(s): Preliminary Results

08.03.2011 / 08:00

telegate AG's preliminary figures for the fiscal year 2010:
annual profit guidance met

– Progress in the transformation: business sector Media with a growth of revenues of 27 percent, share of revenues in group revenues already 28 percent in Q4 2010

– Profit target reached: EBITDA before non-recurring items at EUR 23.2 m

– Solid financial position: net liquid assets amounted to EUR 48.8 m as of December 31, 2010.

Planegg-Martinsried near Munich, March, 8, 2011 – telegate AG's business development of the fiscal year 2010 was still affected by the transformation process from a telephone DA provider to a local search specialist and marketing partner for SMEs.

According to preliminary business figures, total group revenues amounted to EUR 124.6 m compared to EUR 133.1 m in the previous year. As expected, revenues in the classic DA business decreased by approx. 14 percent from EUR 108.6 m to EUR 93.6 m. Revenues in terms of advertising offers for SMEs in the business sector Media showed a dynamic growth of 27 percent from EUR 24.5 m to EUR 31.0 m. The positive development of the transformation process is also proven by the share of the promising business sector Media in group revenues: it increased from 18 percent in the fiscal year 2010 to 25 percent now. This share already amounted to 28 percent in Q4 2010.

Earnings performance: profit guidance reached

The trend of profits of the fiscal year 2010 was characterised by a declining contribution to earnings of the high-margin DA business which could not yet be compensated in the past annual year by the increasing – however lower-margin – Media business. According to preliminary figures, this results in annual corporate earnings before depreciation and amortization, interest and taxes (EBITDA) before non-recurring items in the amount of EUR 23.2 m compared to EUR 33.0 m in the previous year. Thus, the company reached its annual profit guidance due to an accompanying cost discipline across the structural cost pool, in particular. The profit guidance provided an EBITDA before non-recurring items in the amount of EUR 23 m to EUR 27 m. A contribution to earnings of the Italian business, which was sold in 2010, was still included in this guidance.

Segments: Germany widely in line with the group trend, Spain with a growth of earnings

The distribution of revenues at a segment level illustrates the company's increasing focus on the German core market: total revenues of the segment Germany amounted to EUR 113.6 m compared to EUR 121.7 m. In spite of the still challenging market environment in Spain, the segment was able to maintain its revenues in the amount of EUR 11.0 m almost at the previous year's level by higher revenues per call and to increase segment EBITDA from EUR 1.0 m in the previous year to EUR 1.4 m.

Financial position: net liquid assets of EUR 48.8 m

The liquidity situation of the telegate group in the fiscal year 2010 was affected by the operative trend of profits, the inflow of cash from the sale of the Italian subsidiary, the dividend distribution and the implemented share repurchase program. Thus, this results in an amount of liquid assets of EUR 48.8 m as of December 31, 2010. This is EUR 11.2 less than as of the reporting date of the previous year.

Note: telegate AG will announce the final certified business figures of the fiscal year 2010 including a dividend proposal on March 30, 2011.

Preliminary business figures telegate AG, January-December of the corresponding fiscal year	2010	2009	+/- in %
Group revenues	124.6	133.1	-6.3
Revenues business sector DA solutions	93.6	108.6	-13.8
Revenues business sector Media	31.0	24.5	+26.7
EBITDA before non-recurring items	23.2	33.0	-29.7
Liquid assets (as of December 31)	48.8	59.9	– 18.6

All figures stated in EUR m; group figures refer to continued operations

Contact:

Joerg Kiveris
telegate AG
Head of Public Relations Department
Fraunhofer Str. 12a
82152 Planegg-Martinsried
Germany
Phone: +49 (89) 895-4118 8
Fax: +49 (89) 895-4118 9
E-mail: presse@telegate.com
http://twitter.com/telegate
http://www.youtube.com/telegateAG

End of Corporate News

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Language:	English
Company:	telegate AG
	Fraunhofer Str. 12a
	82152 Planegg-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
Listed:	Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart

End of News DGAP News-Service

114675  08.03.2011