11 88 0 Solutions AG — Earnings Release 2009

Mar 11, 2010

News Details

Ad-hoc | 11 March 2010 08:37

Fiscal year 2009 telegate AG: profit targets achieved

telegate AG / Final Results/Forecast

11.03.2010 08:37

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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• Group sales slightly declining with EUR 153.9 m
• Business sector Media with significant growth - highest quarterly sales
  2009 in the 4th quarter
• EBITDA before non-recurring items of EUR 35.0 m for 2009 - confirmation
  of the guidance
• Unchanged dividend proposal of EUR 0.70 per share
• Significantly declining operating earnings expected in the fiscal year
  2010.

The telegate group generated total sales revenues in the amount of EUR
153.9 m in the fiscal year 2009 compared to EUR 164.1 m in the previous
year. The decline in group sales is primarily due to the decreasing demand
for telephone directory assistance all over Europe. Accordingly, the
business sector Directory assistance solutions generated sales in the
amount of EUR 129.4 m compared to EUR 145.4 m in the previous year. The
business sector Media continued to show a positive development with an
increase in sales of approx. 31 percent to EUR 24.5 m. It shall be taken
into consideration here that telegate MEDIA AG (formerly klickTel AG) was
consolidated not before the 2nd quarter 2008. Group sales of the business
sector Media, adjusted by this effect, increased organically by approx. 8
percent. Thus, the advertising sales business now generates approx. 16
percent of sales across the group - this share amounted to approx. 11
percent by the end of the previous fiscal year. Sales generated by the
business sector Media increased from quarter to quarter during the fiscal
year.

Operating profit before interest, taxes, depreciation and amortization
(EBITDA) before non-recurring items amounted to EUR 35.0 m, compared to EUR
39.4 m in the fiscal year 2009. The 2009 operating profit was within the
guidance of EUR 32 to EUR 37 m forecasted at the beginning of the year.
EBITDA including non-recurring items amounted to EUR 34.4 m (previous year:
42.5 m). Annual net income decreased in accordance with the reduced
operating profit from EUR 24.3 m to EUR 16.1 m. Earnings per share showed a
corresponding development from EUR 1.15 in the previous year to now EUR
0.76. The company's management Board and Supervisory Board will propose at
the shareholders' meeting to distribute an unchanged dividend of EUR 0.70
per share to the shareholders. This corresponds to a dividend yield of
approx. 8 percent with regard to the closing date.

The company's management expects a clear double-digit growth in the
business sector Media in 2010. This forecast is due to the expectation that
telegate will significantly benefit from the structural change in the local
advertising market towards advertising in the digital Media and from the
further expansion of its sales force.

Furthermore, the company expects that the decline in call volume in the
highly profitable classic directory assistance business will also affect
the trend in group sales in the fiscal year 2010. This structural effect
regarding earnings can presumably not be compensated yet by the growth of
sales in the business sector Media with a lower margin. Therefore, the
company expects declining earnings in 2010. Operating profit (EBITDA) at
group level before possible non-recurring items is expected in this case in
a range of EUR 23 m to EUR 27 m.

telegate AG's annual report for the fiscal year 2009 is available for
download at: http://www.telegate.com > Investor Relations > Publikationen

(Figures in EUR m) 2009 2008 Change in
percent

Group sales* 153.9 164.1 - 6.2

Sales BS Directory 129.4 145.4 -11.0
assistance solutions*

Sales BS Media* 24.5 18.7 +31.0

EBITDA before non-recurring 35.0 39.4 -11.2
items*

Net income 16.1 24.3 -33.8

Free cash flow before M&A 19.6 28.5 -31.4

Net liquidity (as of 59.9 53.5 +12.0
December 31, 2009)

Number of employees 2,890 3,063 -5.6
(Headcount, as of December
31, 2009)

* Figures refer to continued business operations; BS (= business sector)

Contact:
Jörg Kiveris
telegate AG
Head of Public Relations Department
Fraunhofer Str. 12a
82152 Planegg-Martinsried
Tel.: 089/ 8954-1188
Fax: 089/ 8954-1189
E-Mail: presse@telegate.com

11.03.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language: English
Company: telegate AG
Fraunhofer Str. 12a
82152 Planegg-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, Düsseldorf, Hannover, München, Hamburg, Stuttgart

End of News DGAP News-Service

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