11 88 0 Solutions AG — Earnings Release 2001

Aug 16, 2001

News Details

Ad-hoc | 16 August 2001 08:15

Telegate AG english

Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Strict cost-cutting course lays healthy foundation for upcoming months Munich, August 16, 2001 – The directory enquiry services of Munich-based telegate AG handled 77.5 million incoming calls during the first six months of the current business year. This represents a 34% increase compared to the same period of last year. Revenues grew by almost ten percent to DM 134.2 million, up from DM 122 million in the first six months of last year. The EBITDA (earnings before interest, taxes, depreciation and amortization) was negative at minus DM 24.5 million. This compares to a negative EBITDA of minus DM 0.5 million during the first half of 2000. It means that telegate will probably not be able to reach its goal of a 50 percent increase in sales and a balanced EBITDA for the entire business year 2001. The company expects to break even on EBITDA-level again by the end of the current business year. The board of directors of telegate AG has initiated a strict cost cutting course for the entire group and has made a number of significant strategic decisions affecting all segments of the group: In order to compensate for the current weakness in the German market for directory enquiry services, telegate has already reduced its payroll in Germany by approximately 350 employees since the beginning of the year. Although the market for directory enquiry services continues to be burdened by the free Internet service offered by DeTeMedien, which disturbs the competitive landscape, telegate remains optimistic with regard to the future success of its own directory enquiry service. In Germany, the company has already expanded its market share to 30 percent. end of ad hoc announcement (c) DGAP 16.08.2001 Issuer’s information/explanatory remarks concerning this ad hoc announcement: The budget of telegates Internet subsidiary 11880.com GmbH will be reduced to a minimum in the months to come. The three previous locations have been combined into one. A viable marketing strategy will be developed with the support of strategic sales partners. The Munich-based provider of directory enquiry services is making great strides abroad: In Italy, telegate AG recorded sales of almost DM 2 million during the first six months of 2001. In Spain and in the United Kingdom, a final decision regarding market deregulation is expected to be made by the end of this year. A program aiming at sustained cost reductions has been initiated in all three European markets. In the United States, the deregulation process has been moving forward at a slow pace in recent weeks. telegate intends to find a strategic partner in the next months in order to establish a wide geographic presence when it enters the market. Press information: telegate AG Anja Meyer Fraunhofer Strasse 12a 82152 München-Martinsried Tel.: +49 (0)89 8954-1188 Fax: +49 (0)89 8954-1189 E-mail: anja.meyer@telegate.com Financial information: telegate AG Wolfgang Brand Fraunhofer Strasse 12a 82152 München-Martinsried Tel.: +49 (0)89 8954-1120 Fax: +49 (0)89 8954-1110 E-mail: wolfgang.brand@telegate.com ——————————————————————————– WKN: 511880; Index: NEMAX 50 Listed: Neuer Markt in Frankfurt; Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 160815 Aug 01