11 88 0 Solutions AG — Earnings Release 2008

Jul 31, 2008

News Details

Corporate | 31 July 2008 07:55

Half-year figures telegate AG: positive business performance – earnings forecast upgraded

telegate AG / Half Year Results/Development of Sales

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

---

The sales and earnings position of telegate AG developed better over the
first six months of fiscal year 2008 than anticipated by the company. The
specialist for Local Search managed to stabilize consolidated sales on last
year's level, which was mainly due to internal and external growth of the
new business segment Media. In addition, the profitability of telegate
group improved positively compared to the decreasing trend during the first
quarter of the reporting period. The half-year annual financial statement
of telegate AG for the first time includes the consolidated figures of
klickTel AG.

Sales: growing advertising sales balancing core business weakness
Consolidated sales of telegate AG amounted to 86.4 million Euro in the
first six months of 2008, as compared to 87.5 million Euro to the previous
year. Of these, 79.7 million Euro were generated by the core business (-8
percent), which is now made up of the Voice Directory Assistance and the
software segment of klickTel AG. telegate AG generated already a total of 8
percent of group sales, or 6.7 million Euro, through the dynamically
growing advertising sales business. During the second quarter group sales
increased year-on-year from 43.5 million Euro to 46.7 million Euro.

Earnings situation: strong EBITDA growth in second quarter
Consolidated earnings before interest, taxes, depreciation and amortization
(EBITDA) for the telegate group totaled 25.1 million Euro after the first
six months of the current fiscal year and were thus 7.2 percent up on the
same figure of the year before at 23.4 million Euro. Second quarter EBITDA
came to 16.6 million Euro, which is a plus of around 33 percent compared
with the same period the year prior. Adjusted by one-time expenses incurred
for the acquisition and operative integration of klickTel AG, to the amount
of 1.4 million Euro, as well as the one-time income from the data cost
litigation of 5.5 million Euro, EBITDA amounts to 20.9 million Euro, which
is also up on the previous year (Adjusted EBITDA 2007: 20.3 million Euro).
The period's net income after taxes per 30th June 2008 stood at 16.0
million Euro. The same financial figure had totaled 15.6 million Euro the
year before.

Notwithstanding the cash-outs for the acquisition and integration of
klickTel AG, telegate AG managed to consolidate its strong financial
position still further. As of reporting date, 30th June 2008, the company
held net liquid assets to the amount of 38.1 million Euro (previous year
26.5 million Euro). The equity ratio stood at 49.9 percent as against the
54.0 percent recorded the year before.

Segment performance: predominantly positive
The segment Germany/Austria managed to expand its volume of business during
the reporting period by 3.9 percent to 58.8 million Euro. Above all, this
was due to the strong organic growth seen in the new business segment
advertising sales, as well as the first-time consolidation of the klickTel
sales, which became effective as of 1st of April 2008. The advertising
sales business generated already 17 percent of total sales during the
second quarter. EBITDA for the first six months climbed by 1.7 percent from
last year's comparative period to 23.5 million Euro. This earnings
performance was essentially driven by lower marketing expenses and the
extraordinary income from a positive data cost verdict.

The segment Italy/Spain continued to slightly improve its sales position
during the first half year of 2008: Thus, sales were up by 2.4 percent to
19.9 million Euro. On the other hand the segment's profitability declined.
Higher personnel costs in Italy, triggered by the changing labor laws for
Inbound Call Centers, were a key factor in bringing down the EBITDA by 1.6
million Euro to a total of 1.9 million Euro for the first half year 2008.

In France the company generated sales of 7.7 million Euro during the first
six months of the current fiscal year, which is 3.7 million Euro less than
the year before. To compensate for this development telegate is currently
expanding its online product and working with great urgency together with
the sales partner Comareg to roll out the advertising sales business. Due
to reduced expenses for marketing the company's EBITDA for the first half
year recovered from -3.1 million Euro to -0.2 million Euro.

Outlook 2008: EBITDA forecast upgraded to 30-35 million Euro
Given the strong first half year performance in the key financial figures
for 2008 and in expectation of a generally positive development in 2008,
telegate's management is upgrading its EBITDA forecast from the previous 30
million Euro to 30-35 million Euro. This increase still excludes the
one-time effects incurred from the integration of klickTel AG and those
stemming from the data cost litigation.

Operatively the coming months will be concentrating above all on a joint
appearance on the market following the acquisition of klickTel AG. This
will be in the form of telegate Media. Another focal point will be on the
utilization of market chances offered by the Local Search segment. Both the
online product as well as the business advertising sales segment shall be
continually expanded throughout the group, so that the new business segment
will make a significant contribution to sales and earnings in the mid-term.

Joerg Kiveris
telegate AG
Head of Public Relations
Fraunhofer Strasse 12a
82152 Munich-Martinsried/Germany
Phone: +49-89/ 8954-1188
Fax: +49-89/ 8954-1189
E-Mail: presse@telegate.com

31.07.2008 Financial News transmitted by DGAP

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

---