11 88 0 Solutions AG — Earnings Release 2001

Nov 8, 2001

News Details

Ad-hoc | 8 November 2001 07:30

Telegate AG english

Cost-cutting program of telegate AG begins to bear fruit Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Losses were reduced by more than 50 percent in Q3 2001 Munich, November 8, 2001 The cost-cutting program of Munich-based telegate AG has begun to prove success: Despite a slight, seasonal decline in sales from EUR 36 million (DM 70.6 million) in the third quarter of 2000 to EUR 32 million (DM 63 million) in the third quarter of 2001, the provider of directory assistance services was able to cut its loss by more than 50 percent compared to the second quarter of the current fiscal year. telegate AG succeeded in reducing its negative EBITDA (earnings before interest, taxes, depreciation and amortization), which was minus EUR 6.6 million (minus DM 12.9 million) in the first quarter and minus EUR 5.9 million (minus DM 11.6 million) in the second quarter, to minus EUR 2.7 million (minus DM 5.2 million) in the third quarter. The company reiterates its goal of reaching breakeven again in the fourth quarter. As a result, the EBITDA is minus EUR 15.2 million after the first three quarters of fiscal 2001. This compares to an EBITDA of minus EUR 1.9 million for the same period of fiscal 2000. After the second quarter, the EBITDA had been negative at minus EUR 12.5 million. A total of 113.9 million incoming calls were recorded in telegate AG during the first nine months of the year. This compares to 96.6 million calls for the same period of last year. Despite the difficult overall economic environment, the core business with the directory assistance service number 11880 has been brisk: The third quarter (July through September), which traditionally is the weakest quarter because of the long summer holidays, contributed 36.4 million calls to this figure. Nevertheless, in the German core business, the EBITDA during this period was clearly positive at EUR 3.8 million. This compares to an EBITDA of EUR 1.6 million (DM 3.1 million) for the second quarter of 2001. end of ad-hoc-announcement (c)DGAP 08.11.2001 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: In the first three quarters of 2001, sales of telegate AG increased by 2.4 percent over the same period of last year. Call volume was up almost 18 percent. Despite the positive development, the company will remain focused on internal measures to cut costs over the next months. This also applies to telegate’s international business. In the United States, the company is currently reviewing options to optimize existing business processes at the different locations in order to cut costs in the short term. In Italy, SEAT Pagine Gialle, the major shareholder of telegate, supports telegate Italia in the further expansion of its business activities. In the United Kingdom, the telegate board of directors expects a competitive phone number to be assigned by the end of the year. In Spain, deregulation is expected next year. Press Information: telegate AG Anja Meyer Fraunhofer Str. 12a 82152 München-Martinsried Tel.: 089/ 8954-1188 Fax: 089/ 8954-1189 e-mail: anja.meyer@telegate.com Financial Information: telegate AG Marc Langner Fraunhofer Str. 12a 82152 München-Martinsried Tel.: 089/ 8954-1120 Fax: 089/ 8954-1110 e-mail: marc.langner@telegate.com ——————————————————————————– WKN: 511880; Index: NEMAX 50 Listed: Neuer Markt in Frankfurt; Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 080730 Nov 01