telegate Group Financial Results 2013 Munich, March 13, 2014

Transcription

1 telegate Group Financial Results 2013 Munich, March 13, 2014

2 Agenda Digital business highlights Reasons behind improvements Financials 2013 Outlook 2

3 2013 digital business KPIs ARPA new customers Up by 23 % yoy Customer retention Churn down by 21 % (=8.5pp) yoy Website penetration Up to 62% (2012: 30%) 24 months contracts penetration Up to 67% (2012: 41%) EBITDA* improvement Media of 79% yoy Mobile traffic ** / product innovation Revenue/sales head Up by 43% yoy Up by 8% yoy * Before non-recurring items ** incl. cooperations 3

4 confirming consistent and positive trend! EBITDA* excl. Software business** incl. Software business m -5.2 m m -0.6 m Customer Acquisition - Website Penetration - 24-Months-Penetration - ARPA 12% 4% 1,023 62% 67% 1,523 Customer Retention - Website Penetration - 24-Months-Penetration - Churn 5% 3% 43% 29% 43% 32% * before non-recurring items ** Software business has been transferred as of Q from segment DA to segment Digital business 4

5 Agenda Digital business highlights Reasons behind improvements Financials 2013 Outlook 5

6 Improved customer acquisition and retention Customer Acquisition Customer Retention Revenue per sales employee Renewal-rate existing customers + 8 % + 21 % (E) (E) Improved product portfolio & quality Reduced fluctuation of sales staff and improved training Optimised customer service across complete customer life-cyle Customized service introduced Increasing share of longer-lasting contracts Similar trends expected for

7 Disciplined cost management continued Digital Business telegate overall Revenues required to reach break-even* Annual reduction of fix cost + 37% improvement further improvement Ø (E) Approx. 54m 34m -11% -10% > -10% Break-even point improved significantly: In 2011, break-even point was at 54m revenues, whilst H break-even point could be lowered to 34m Fix cost base reduced on average by about 11% each year * Based on EBITDA before non-recurring items 7

8 State-of the art value proposition (1/2) # Websites/ Videos Website penetration has now reached 62 %. In 2013 we have produced and delivered 4,600 websites # Listings 84% of our customers benefit from a listing on both our mobile and web platforms In 2013 telegate generated overall circa 350 million searches out of which 48 % on mobile 8

9 State-of the art value proposition (2/2) # of Google Campaigns telegate remains the best Google reseller in the DACH region (Germany, Austria, Switzerland) In 2013 we have managed more than 9,700 Adwords campaigns Local Offers Mein Angebot represents in Germany a unique value proposition We got more than 2,900 customers benefiting from our free local mobile couponing value proposition 9

10 Agenda Progress digital highlights Reasons behind improvement Financials 2013 Outlook 10

11 KPIs Directory Assistance past 3 years (m ) -21% -24% % % 11.1 Revenues 1 EBITDA w/o Software business 2 before non-recurring items 11

12 KPIs Digital Business past 3 years (m ) -5% -7% Revenues EBITDA % % before non-recurring items 12

13 Digital business has reached profitability: Constant & long-term track record of profit improvement -2.5 m Further improvement HY HY HY HY HY HY (E) m m *EBITDA before non-recurring items Improved product portfolio More efficient customer acquisition Much better customer retention Very disciplined cost management 13

14 Revenue & EBITDA* in line with guidance TG Group % Revenues 72,3 86,6 Cost of revenues 32,5 36,4-16% -14,3-11% -3,9 Gross profit 39,8 50,2 Gross profit % 55,1% 58,0% -21% -10,3 Selling and distribution costs 28,8 39,6-27% -10,8 General administrative expenses 10,9 11,5-5% -0,6 Other operating income/expense 0,0 0,3-0,3 EBITDA w/o OTEs 10,5 13,6-23% -3,1 non-recurring effects 2,9-51,7 Focus on cost-optimization with visible results fix cost base -10%, selling & distribution -27% Efforts related to the offer as well as to customer-retention started to become visible in the top line non-deferred revenues again growing since Q *excl. non-recurring items 14

15 Net Cash Flow influenced by high investments for next-generation Voice Technology Operating Cash Flow * (m ) Net Cash Flow *,** (m ) Slight increase in operating cash flow (w/o data cost & tax items) helped also by positive impact from working capital Net Cash-flow below previous year level driven by lower operating profit & by temporarily very high investments for replacing the voicetechnology Investments (Capex) 2014 will be on much lower level vs (2013: 7.8m, 2014 about 1m +/-) * adjusted by effects related to 2012 (data cost claims and tax audit) ** Net Cash Flow: Operating CF + investing CF +/- interest income/expenses 15

16 NFP 2013 affected by cash-out related to 2012 & extraordinary dividend payment Net Financial Position Cash outflow 2013 related to 2012 items (data-cost claims & tax audit) Operating cash flow 2013 Investing cash flow Dividend payment* 2 /share end Aug. Net Financial Position * incl. the 24.2 m held in a separated account for Seat Pagine Gialle (in m ) 16

17 Dividend proposal to Annual General Meeting on 25th June 2014: 0.40 per share Net financial position of 40.1 m as of Intended usage includes: Cash distribution of 7.6 m or 0.40 per share to shareholders, payable (1 day after AGM, provided approval of AGM) will be paid tax-free (without withholding-tax) Likely investing some of the cash to strengthen our digital business Retaining adequate liquidity to ensure flexibility 17

18 Agenda Progress digital highlights Reasons behind improvements Financials 2013 Outlook 18

19 Digital Business: (E) revenues and profit evolution -5% -7% Revenues 1 EBITDA % % (E) 1 before non-recurring items (in m ) 19

20 The digital turnaround is on track! Until Comments Profit** Revenue* Double-digit growth Double-digit loss Significant expansion of sales capacity fuelled growth Customer retention worsened Flat growth Product improvements Customer retention improved remarkably ARPA & Sales efficiency improved Break-even reached Double-digit growth Double digit profit improvement Sizeable positive profit contribution 2014, growing ff. Continued focus on sales efficiency, customer retention and product quality * On a non-deferred basis, excl. SW business ** EBITDA before non-recurring items 20

21 2014 Group guidance Profitability EBITDA* of 7-9 m Net cash flow of about zero Cash Flow Profitability in digital business further improving *before non-recurring items 21

22 Contacts and financial calendar telegate AG CEO Elio Schiavo CFO Ralf Grüßhaber Investor Relations Franz Peter Weber telegate AG Fraunhoferstraße 12a Martinsried, Germany Financial Calendar May 7, months results 2014 June 25, 2014 Annual General Meeting 2014 August 6, months results 2014 November 6, months results 2014 Phone +49 (0) Fax +49 (0) Homepage 22

23 Disclaimer This presentation contains forward looking statements regarding telegate Group (telegate), including opinions, estimates and projections regarding telegate s financial position, business strategy, plans and objectives of management and future operations. Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of telegate to be materially different from future results, performance and achievements expressed or implied by such forward looking statements. These forward looking statements speak only as of the date of this presentation and are based on numerous assumptions which may or may not prove to be correct. Whilst all reasonable care has been taken to ensure that the information and facts stated herein are accurate and that the opinions and expectations contained herein are fair and reasonable, no representation or warranty, express or implied, is made by telegate with respect to fairness, completeness, correctness, reasonableness or accuracy of any information and opinions contained herein. The information in this presentation is subject to change without a prior notice, it may be incomplete or condensed, and it may not contain all material information concerning telegate. telegate undertakes no obligation to publicly update or revise any forward looking statements or other information stated herein, whether as a result of new information, future events or otherwise. 23

24 Backup 24

25 Consolidated P&L k 12M M 2012 % Continuing operations Revenues 72,333 86,584-16% Revenues DA solutions 37,032 48,822-24% Revenues Media 35,301 37,763-7% Cost of revenues -33,152-39,546-16% Gross profit 39,181 47,038-17% Gross profit in % 54.2% 54.3% Selling and distribution costs -30,001-41,605-28% General administrative expenses -12,271-15,138-19% Other operating income ,287 Other operating expense ,154 EBITDA incl. non-recurring effects 7,573 65,285-88% non-recurring effects 2,917-51,661 EBITDA w/o non-recurring effects 10,490 13,624-23% Financial income 20 23,070 Income before tax -2,787 73,498 Income tax ,659 Income from continuing operations -1,893 46,839 Discontinued operations Income from discontinued operations Net Income -2,004 47,072 Earnings per share (in Euro)

26 Non-recurring items non-recurring items cost items m Q Q M M 2012 Cost of revenues Selling and distribution costs General administrative expenses Other operating income/expense total non-recurring items topics m Q Q M M 2012 Data-cost claims Structural costs total

27 Consolidated balance sheet in keur Assets Cash and cash equivalents 9,950 93,250 Trade accounts receivable 13,158 16,266 Current tax assets Available for sale financial assets 30,128 0 Other financial assets 24,570 1,162 Other current assets 2,035 7,926 Total current assets 80, ,631 Tangible and intangible assets 24,895 24,950 Other non-current assets Total non-current assets 24,910 25,419 Total Assets 105, ,050 Liabilities & Shareholders' equity Current liabilities 40,273 38,489 Non-current liabilities 4,049 4,484 Shareholders' equity 60, ,077 Total liabilities & shareholders' equity 105, ,050 27

28 Consolidated cash flow statement in keur Income from continuing operations -2,787 73,498 Income from discontinued operations Income before income tax -2,882 74,226 Depreciation & amortisation 10,524 15,241 Changes in operating assets & liabilities ,604 Interest income / expense Income taxes paid -10, Other items Cash provided by (used in) operating activities -5,560 41,552 Purchase of assets -9,790-4,625 Proceeds from the sale of subsidiaries Purchase of current cash deposits -24,209 0 Purchase of available for sale financial assets -57,978 0 Disposal of available for sale financial assets 28,012 0 Interest received ,953 Cash used in investing activities -62,831 19,328 Dividend paid -14,014-6,689 Interest paid Cash provided by financing activities -14,908-6,705 Change in cash and cash equivalents -83,300 54,202 Cash and cash equivalents at the beginning of reporting period 93,250 39,048 Cash and cash equivalents at the end of reporting period 9,950 93,250 Cash and cash equivalents as well as short-term available for sale financial assets at the end of reporting period 40,078 93,250 28

29 Thank you for your attention! telegate AG Fraunhoferstr. 12 a Martinsried bei München Tel 089/ Fax 089/ Follow us on