11 88 0 Solutions AG — Earnings Release 2006

Mar 8, 2007

News Details

Corporate | 8 March 2007 08:12

telegate AG: telegate maintains continuity of dividend for fiscal year 2006. Unabated growth dynamism – Earnings forecast slightly exceeded

telegate AG / Final Results/Dividend

Release of a Corporate-announcement, transmitted by DGAP - a company of
EquityStory AG.
The issuer is solely responsible for the content of this announcement.

---

telegate Group closes fiscal year 2006 with a significant plus in sales.
The Group records a positive sales and earnings performance especially for
the second half of the year, and even manages to surpass its own forecast
for that period. The proposal for a dividend payment on the preceding
fiscal year is to follow last year’s level of 0.65 Euro per share. 'With
2006 we see an eventful year full of intensive competition come to a close'
explains Dr. Andreas Albath, CEO of telegate AG, 'and we are proud of the
national and international successes we achieved in this year of
competition. For 2007 we have set ourselves once more ambitious targets'
says Albath.

Annual profit 2006
In 2006, telegate generated an annual net income after taxes of 6,0 million
Euro (fiscal year 2005: 27.1 million Euro). Sales in the year under review
totaled 178.9 million Euro, a plus of 19 percent on the year before (fiscal
year 2005: 150.1 million Euro). Foreign business operations proved to be
the most dynamic growth drivers. With sales up by about 80 percent, today’s
operations in Italy, Spain and France contribute 63.3 million Euro (fiscal
year 2005: 34.9 million Euro) or around a third of telegate Group’s total
sales (fiscal year 2005: 23 percent). At 115.6 million Euro, the segment
Germany/Austria recorded sales on a par with last year’s level (fiscal year
2005: 115.2 million Euro). Earnings before interests, taxes, depreciation
and amortization (EBITDA) for fiscal year 2006 came to 17.0 million Euro
(fiscal year 2005: 37.9 million Euro). Advertising spendings for building
up the brand in France were a burden on profitability especially during the
first half of the year. At 21.5 million Euro the EBITDA for the second half
year of 2006, however, even exceeded telegate’s own expectations and could
grow significantly with 35 percent compared to the second half year of 2005
(Second Half Year 2005: 16.0 million Euro). As of December 31, 2006, the
company held liquid assets of 18.7 million Euro (fiscal year 2005: 51.4
million Euro) with an unchanged equity ratio of 50 percent (31 December
2005: 50 percent).

Dividend payment
As part of its longterm oriented dividend policy the Management and
Supervisory Board will propose payment of a dividend of 0.65 Euro per share
at the annual shareholders’ meeting on May 9, 2007. This will be exactly
the same sum of 13.6 million Euro paid out as dividend in the year before.
Explaining their decision, Dr. Andreas Albath notes, 'We are signaling
reliability to our shareholders with this dividend continuity and are
giving a clear indication of our optimistic outlook for the future.'

Business performance and outlook 2007
The business strategy of telegate essentially rests on two pillars:
extending the product portfolio for private and business customers as well
as growing through the expansion in foreign markets. telegate made
substantial progress on both fronts over the last year. 'While the focus of
investments in 2006 had been on developing the foreign business, in the
current fiscal year we want to concentrate particularly on developing the
business in the already existing markets', explains Dr. Andreas Albath the
company’ strategic focus. Unchanged telegate is expecting a significant
increase in EBITDA at a level of around 50 million Euro for fiscal year
2007.

As the first German provider, telegate has made a targeted effort to
transfer the directory assistance and brand competence of its ‘11880’
number to the modern information channels Internet, SMS and mobile devices.
Already today therefore the company provides directory assistance in
premium quality and across media channels to optimally meet changing
consumer demand. By concluding strategic cooperations and acquisitions, the
company further strengthened its core business of classic telephone
directory assistance in 2006 and, in spite of a harsher competition,
managed to extend its market share to 37 percent. As market expert for
information services, telegate’s fast, comprehensive and correct provision
of information generates value added for end customer and simultaneously
provides a basis for value added to business customers. 'They increasingly
appreciate the offer of specific and targeted advertisement opportunities,
which for us spell out as an additional source of revenue', says Dr.
Albath.

Growth dynamism, on the other hand, continues to be displayed by the
foreign business operations. In the already consolidated markets of Italy
and Spain, telegate grows in 2006 and manages to double its operative
earnings. This offers the company an excellent platform for the ongoing
expansion of its business model. As the youngest foreign market in which
telegate Group operates, France will focus over the coming months on
strengthening the company’s market position whilst simultaneously keeping a
keen eye on the profitability of the business field.

About telegate AG:
telegate is a leading supplier of information services in Europe. The
company was founded in 1996 and in 1999 was successfully listed on the
Frankfurt stock exchange (ISIN: DE0005118806). Apart from the expansion of
innovative services for consumers and business customers, the drive into
other European countries is the focal point of the company’s strategic
orientation. After Germany, telegate has today successfully established
itself in Austria, France, Italy and Spain. In the fiscal year of 2006 the
telegate Group achieved total revenues of around 180 million Euro, thereby
attaining an annual net income of 6 million Euro.

telegate AG
Claudia Strixner
Head of Public Relations
Fraunhofer Str. 12a
82152 Munich-Martinsried
Tel.: 089/ 8954-1180
Fax: 089/ 8954-1189
E-Mail: presse@telegate.com
www.telegate.com

DGAP 08.03.2007

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
www: www.telegate.de
ISIN: DE0005118806
WKN: 511880
Indices:
Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin-Bremen, Hannover, Düsseldorf, Hamburg, München,
Stuttgart

End of News DGAP News-Service

---