Ad hoc / Announcements

30th March 2007

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TELES Results 2006

Increase in revenues according to plan; TELES results for the year burdened with expenses for the enforcement of the strategically important VoIP patents and the preproduction costs according to the growth expectations of the infrastructure business.

This information is released pursuant to Section 13 Subsection 1 and Section 15 Subsection 1 of the Investor Protection Improvement Act (AnSVG).

With revenue growth according to plan, the result from Continuing Operations of the TELES-Group in 2006 amounted to -16.9 Mio€ (in 2005 -11.2 Mio€). This decrease in particular results from the higher expenses for the enforcement of the strategically important TELES’ VoIP patents.

In addition the operating losses result from higher TCS´ operating costs (TCS = TELES Communication Systems) and further — even so improved significantly — from persistent losses in the TWBI business (TWBI = TELES Wireless Broadband Internet). The higher TCS´ operating costs on the one hand are due to (to approx. one third) non-recurring costs because of optimisation of the sales structure, on the other hand higher costs were caused by the extension of the range of products according to the growth expectations for the coming years.

The key data of the Group's Continuing Operations for 2006 (in accordance with IFRS, audited) can be summarized as follows:

  • Revenues: 28.2 Mio€ (25.4 Mio€, +11%),
  • Gross Profit: 10.8 Mio€ (9.6 Mio€, +12%),
  • EBITDA: -16.6 Mio€ (-12.2 Mio€),
  • EBIT: -17.5 Mio€ (-12.9 Mio€),
  • EBT: -14.5 Mio€ (-10.9 Mio€).

Attention is drawn to two further very important key figures:

  • By December 31st, 2006 — and thus after payment to shareholders of about 40Mio€ in connection with capital reduction, that is nearly 2€ per share, in 2005 and during the reporting period respectively — Cash (and cash equivalent) amounted to 41.1 Mio€ (previous year: 74.3 Mio€). Furthermore, TELES owns almost 3.6 million freenet shares (“freenet AG — new” after registered merger by March 2nd, 2007) and almost 2.2 million treasury stock with a current stock exchange value totalling to 90 Mio€.
  • The equity ratio amounted to 93 % by December 31st, 2006.

The complete and audited Annual Report 2006 will shortly be published on www.teles.de.

Professor Sigram Schindler
CEO of TELES AG