11 88 0 Solutions AG — Earnings Release 2009

May 7, 2009

News Details

Corporate | 7 May 2009 08:25

Quarterly results telegate AG: earnings numbers significantly improvedtelegate AG:

telegate AG / Quarter Results/Interim Report

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.

---

* Group sales rise by approximately 7 percent
* Transformation of the business model continues successfully:
Business area Media already generates approximately 14 percent of group
sales
* EBITDA before one-time effects increased by around 9 percent

Munich, May 7, 2009 - The telegate group started well in the fiscal year
2009 irrespective of the recessionary economic environment. Group sales of
the multichannel-provider of local search increased from EUR 39.7 m by
approximately 7 percent to EUR 42.3 m due to the significant growth of the
business sector Media, in particular. Earnings before interest, taxes,
depreciation and amortization (EBITDA) before one-time effects amounted to
EUR 9.9 m and thus around 9 percent above previous year's earnings in the
amount of EUR 9.1 m. telegate's management board adheres to the objective
of an EBITDA before one-time effects of EUR 32 to EUR 37 m in its forecast
for the fiscal year 2009.

The young business sector Media attained sales in the amount of EUR 5.8 m
which is more than the fivefold amount of EUR 1.1 m of the previous year.
Both the first consolidation of the contribution to sales of telegate MEDIA
AG (formerly klickTel AG) and the significant organic growth of the
advertising sales business made a contribution to this development. The
decline of sales from EUR 38.6 m to EUR 36.6 m in the classic directory
assistance business which combines the telephone directory assistance
services and the klickTel software products was within the expectations.

Profitability: accelerated cost management shows positive effects

EBITDA of the telegate group including one-time effects amounted to EUR 9.8
m after the first 3 months of the fiscal year 2009. This represents a
significant increase in profits of approximately 14 percent compared to
previous year's earnings in the amount of EUR 8.6 m. This earnings number
includes several special items: one-time expenses for the integration of
telegate MEDIA AG in the earnings of the first quarter 2009 as well as
one-time expenses for the acquisition of telegate MEDIA AG in the previous
year's quarter. EBITDA adjusted by these effects amount to EUR 9.9 m, this
is around 9 percent higher compared to the previous year - telegate AG
generated an EBITDA before one-time effects in the amount of EUR 9.1 m in
the first quarter 2008.

First-quarter net income of the telegate group clearly increased from EUR
5.8 m in the previous year to now EUR 6.6 m. Earnings per share rose
correspondingly from EUR 0.27 per share to EUR 0.31 per share. The
development with regard to all earnings numbers is primarily based on an
accelerated cost management, lower advertising expenses and the successful
expansion of value added services in the classic directory assistance
business.

Financial position: equity ratio of 56.1 percent

The telegate group which is free from debt further improved its balance
sheet quality in the first quarter 2009. Equity ratio amounts to 56.1
percent as of March 31, 2009. This ratio amounted to 52.7 percent as of the
closing date of the fiscal year 2009. Liquid assets increased again from
EUR 53.5 m to EUR 54.9 m irrespective of high payments of taxes and the
cash used for the acquisition of the remaining shares of telegate MEDIA
AG's minority shareholders.

Segments: growth of profits in spite of a difficult overall economic
environment

telegate AG further continues to move forward with regard to the
transformation process from a classic provider of telephone directory
assistance to a specialist for local search and digital marketing of small
and medium-sized businesses in the core market Germany/Austria. The share
in sales of the advertising sales business of the segment sales already
amounts to 17.7 percent. This share amounted to 14.9 percent by the end of
the fiscal year 2008. The Media business continues to grow dynamically in
spite of the difficult overall economic conditions. Sales of Media business
increased from EUR 1.1 m in the previous year to EUR 5.5 due to both the
organic growth and the contribution to sales of telegate MEDIA AG (formerly
klickTel AG) which was consolidated for the first time. The sales volume of
the directory assistance business in the amount of EUR 25.4 m was slightly
above previous year's level of 24.9 m. The expansion of the
Comfort-Services and the sales of the software business of telegate MEDIA
AG which were consolidated for the first time primarily contributed to this
development. Segment sales overall significantly rose by 19 percent from
EUR 25.9 m in the previous year to now EUR 30.9 m due to the contribution
to sales of the advertising marketing business, in particular. The positive
sales trend is also reflected in the segment-EBITDA before one-time
effects. It improved from EUR 8.7 m in the comparative period to a current
EUR 9.0 m.

The segment France generated quarterly sales in the amount of EUR 3.1 m
after EUR 4.0 m in the previous year in a still very competitive and
considerably declining market environment. In this connection, the new
business sector Media already generated approximately 8.3 percent of total
sales. The segment again generated a positive contribution to telegate
group's earnings due to lower advertising expenses and cost optimizations:
EBITDA amounted to EUR 0.1 m in the first quarter 2009 after EUR -0.2 m in
the previous year.

The difficult overall economic conditions had noticeable effects on the
business development of the segment Italy/Spain in the first quarter 2009.
The decreasing call volume resulted in a decline of sales in both countries
in the amount of EUR 9.8 m in the previous year to now EUR 8.3 m. This
trend was counteracted by cost optimization measures - capacity adjustments
and expansion of offshoring, in particular. For this reason, the EBITDA in
the amount of EUR 0.8 m was higher compared to the comparative quarter of
the previous year (EUR 0.6 m).

Outlook

telegate's management board still proceeds on the assumption of a slightly
declining profit dynamic with regard to the entire fiscal year 2009,
irrespective of the positive first quarter's profit performance. Overall,
the company expects still an EBITDA before one-time effects within a range
of EUR 32 m to EUR 37 m compared to EUR 40.2 m in the financial year 2008.
The decline of sales to be expected in the classic directory assistance
business with a high margin is the main reason which presumably cannot be
compensated yet by the strong growth of the Media business with a lower
margin in the current fiscal year.

In addition, the projection of the management is based on the still
difficult overall economic environment in all European markets. The company
continues to remain cautious even though the recession has not affected the
financial figures of telegate AG yet. Accordingly, telegate AG continues to
focus on an optimization of cost structures in order to ensure the
investment scope for the growth of the Media business.

Press contact:

Joerg Kiveris
telegate AG
Head of Public Relations Department
Fraunhofer Str. 12a
82152 Planegg-Martinsried near Munich
GERMANY
Phone: +49 (89) 8954-1188
Fax: +49 (89) 8954-1189
E-mail: presse@telegate.com

07.05.2009 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

---