telegate Group Financial Results 9M 2014 Munich, November 6, 2014

Transcription

1 telegate Group Financial Results 9M 2014 Munich, November 6, 2014

2 Digital business trends Financials 9M 2014 Outlook 2

3 Digital business improvements in the first 9M 2014 ARPA new customers Up by 7 % yoy Customer retention Churn down by 8 % (=2.4.pp) yoy Website penetration Steadily above 50% (9M 2013: 62%) 24 months contracts penetration Up to 73% (9M 2013: 68%) Positive EBITDA* now consolidated with +0.6 m Customer satisfaction significantly increased following quality measures * Before non-recurring items 3

4 and during past 3 years clearly visible! Ytd EBITDA* -5.2 m -0.6 m 0.6 m Customer Acquisition - Website Penetration - 24-Months-Penetration - ARPA 12% 4 % 1,023 61% 67% 1,523 53% 73% 1,606 Customer Retention - Website Penetration - 24-Months-Penetration - Churn 5% 3% 43% 29% 41% 32% 34 % 46 % 29 % * before non-recurring items and incl. Software business that has been transferred as of Q from segment DA to segment Digital business (prior years are restated accordingly) 4

5 Digital business is now steadily profitable*: Constant & long-term track record of profit improvement -2.5 m Further improvement 0 HY 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 5

6 Improvement of our bundle product portfolio # Websites Website penetration steadily above 50 % (2013: 61%) Currently we produce and deliver ~400 websites/month # Listings ~84% of our customers benefit from a listing on our own platforms Listings on our platform deliver high conversion rates to customers Sales boost campaign with raised value proposition started in Oct. 14 6

7 Google is an essential part of our product portfolio # of Google Campaigns Currently we manage Google customers with a value of >10 m telegate remains the best Google reseller in the DACH* region * Germany, Austria, Switzerland 7

8 Digital business trends Financials 9M 2014 Outlook 8

9 KPIs Directory Assistance 9M 13 vs. 9M 14-26% % 6.2 Revenues EBITDA 1 9M M 2014 DA business remains a very profitable due to revenue & cost optimization 1 before non-recurring items 9

10 KPIs Digital Business 9M 13 vs. 9M Revenues EBITDA M M 2014 Digital business displays steady improvement in profitability 1 before non-recurring items 10

11 Revenue & EBITDA* in line with guidance TG Group YTD 2014 YTD 2013 % D Revenues 47,5 55,2-14% -7,7 Cost of revenues 22,5 24,4-8% -1,8 Gross profit 25,1 30,7-18% -5,6 Gross profit % 52,7% 55,7% Selling and distribution costs 19,1 22,1-14% -3,0 General administrative expenses 6,8 8,5-20% -1,7 Other operating income/expense 0,0 0,0 0,0 EBITDA w/o OTEs 6,8 8,1-16% -1,3 non-recurring effects Cost-optimization program with visible results: fix cost base/gen. admin -20% selling & distribution -14% *all figures in m and excluding non-recurring items 11

12 Temporarily very high non-recurring items is driven by aggressive fixed-cost reduction Non-recurring items cost items YTD 2014 YTD 2013 D Group total 6,0 2,7 3,3 Cost of revenues 1,8 1,1 0,7 Selling and distribution costs 1,2 0,8 0,4 General administrative expenses 3,1 1,2 1,9 Other operating income/expenses -0,1-0,4 0,3 Non-recurring items topics structural cost reduction of > 6 m p.a. m YTD 2014 YTD 2013 D Non-recurring items Group total 6,0 2,7 3,3 thereof data costs 0,2 0,3-0,1 thereof structural costs 5,8 2,4 3,4 thereof structural costs Media 2,3 1,5 0,8 thereof structural costs DA 3,6 1,2 2,4 12

13 accordingly operating Cash Flow suffers from expenses of cost reduction program Operating Cash Flow * (m ) 9M M 2014 Net Cash Flow *,** (m ) 9M M Decrease in operating cash flow* driven by expenses of non-recurring items Investments (Capex) 2014 are on much lower level vs. 2013, compensating higher non-recurring items Net financial position of 26.8 m available to strengthen our digital business * adjusted by effects related to data cost claims and tax payments following tax audit & data cost claims ** Net Cash Flow: Operating CF + investing CF (w/o available for sale financial assets) +/- interest income/expenses 13

14 Damage claim against Deutsche Telekom AG telegate AG claims for 86 Mio. plus interest Reasoning: Damage due to violation of cartel law by DTAG German Federal Court has stated violation of cartel law by DTAG for data-records already in another claim by telegate Next milestone: oral hearing scheduled for Dec 10,

15 Digital business trends Financials 9M 2014 Outlook 15

16 We invest in quality and product value... Implementation of a dedicated quality team in Sales (already finalized in Q3 14) Bundle product portfolio with a raised value proposition available (already launched in October 14) Enhanced product portfolio in preparation (launch April 15) to boost sales in

17 We focus on process improvements Processes have already been streamlined to ensure a fast and reliable production of all products Automated quality checks are in place to measure production quality Streamlining of the customer journey is in progress to ensure seamless processes with the customer to develop our business and increase customer satisfaction 17

18 Group guidance 2014: Profitability EBITDA* of 7-9 m We expect a negative net cash flow due to non-recurring items Cash Flow Further improvement of profitability in digital business *before non-recurring items 18

19 Contacts and financial calendar telegate AG Spokesman of the management board Franz Peter Weber management board Michael Geiger Investor Relations Thomas Kley Financial Calendar November 6, months results 2014 March 19, 2015 annual results 2014 telegate AG Fraunhoferstraße 12a Martinsried, Germany Phone +49 (0) Fax +49 (0) Homepage 19

20 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. 20

21 Backup 21

22 Consolidated P&L k Q Q % 9M M 2013 % Continuing operations Revenues % % Revenues DA solutions % % Revenues Media % % Cost of revenues % % Gross profit % Gross profit in % 54,4% 56,0% 48,6% 53,7% Selling and distribution costs % % General administrative expenses % % Other operating income Other operating expense EBITDA incl. non-recurring effects non-recurring effects EBITDA w/o non-recurring effects % % Financial income Income before tax Income tax Income from continuing operations Discontinued operations Income from discontinued operations Net Income Earnings per share (in Euro) -0,04 0,00-0,22-0,10 22

23 Consolidated balance sheet in keur Sept 30, 2014 Sept 30, 2013 Dec 31, 2013 Assets Cash and cash equivalents Trade accounts receivable Current tax assets Available for sale financial assets Other financial assets Other current assets Total current assets Tangible and intangible assets Other non-current assets Total non-current assets Total Assets Liabilities & Shareholders' equity Current liabilities Non-current liabilities Shareholders' equity Total liabilities & shareholders' equity

24 Consolidated cash flow statement in keur 9M M 2013 Income from continuing operations Income from discontinued operations Income before income tax Depreciation & amortisation Changes in operating assets & liabilities Interest income / expense Income taxes paid Other items Cash provided by (used in) operating activities Purchase of assets disposal of subsidiaries Purchase of other current financial assets Disposal of available for sale financial assets Interest received Cash used in investing activities Dividend paid Interest paid Cash provided by financing activities Change in cash and cash equivalents Cash and cash equivalents at the beginning of reporting period Cash and cash equivalents at the end of reporting period

25 Thank you for your attention! telegate AG Fraunhoferstr. 12 a Martinsried bei München Tel 089/ Fax 089/ Follow us on 25