11880 Solutions AG successfully continued restructuring in 2017 financial year: EBITDA improved, costs reduced further, 5,000 new customers acquired
March 22, 2018 at 03:10 am EDT
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DGAP-News: 11880 Solutions AG / Key word(s): Final Results
11880 Solutions AG successfully continued restructuring in 2017 financial year: EBITDA improved, costs reduced further, 5,000 new customers acquired
22.03.2018 / 08:00
The issuer is solely responsible for the content of this announcement.
Essen, 22 March 2018 - 11880 Solutions AG successfully continued its essential restructuring process during the 2017 financial year and remains on course for growth, after improving EBITDA and reducing costs once again. In the Digital business, the Company acquired approximately 5,000 net new customers for the first time in its history.
11880 Solutions AG generated EBITDA of EUR -2.3 million in 2017 (2016: EUR -2.7 million), with revenue totaling EUR 41.3 million (2016: EUR 44.7 million). Of this figure, EUR 26.9 million (2016: EUR 28.5 million) was attributable to the Digital business and EUR 14.4 million (2016: EUR 16.2 million) to Directory Assistance. Although deferred revenue means that the high number of new customers acquired is not yet reflected in the revenue figure for 2017, this will have a noticeable effect in 2018. Earnings were primarily impacted by non-recurring restructuring costs arising from events such as the site closure in Munich and personnel measures at all sites. Selling and distribution costs were reduced by 16 percent to EUR 14.9 million in the 2017 financial year (2016: EUR 17.8 million), while administrative expenses were down 13 percent on the previous year to EUR 9.8 million (2016: EUR 11.3 million).
"The restructuring of our company is largely complete and will only impact our cash flow in the first few months of the current year," said CEO Christian Maar. "We are now turning our attention back to growth. The new product portfolio has been very well received by small and medium-sized companies and will be expanded further to include several promising features this year. Our aim is to end the current financial year with EBITDA at break-even or higher."
11880 Solutions AG expects revenue of between EUR 39.8 and 43.2 million and EBITDA between EUR 0.4 and 2.4 million for the 2018 financial year. With more than 1,500 new customers already added in the Digital business since the beginning of the year, the Company has a good chance of achieving its ambitious target.
The 2017 annual report of 11880 Solutions AG is available at: https://ir.11880.com/english/reports
22.03.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de
Language:
English
Company:
11880 Solutions AG
Kruppstraße 74
45145 Essen
Germany
Phone:
0395 - 560 99 - 0
E-mail:
info@11880.com
Internet:
www.11880.com
ISIN:
DE0005118806
WKN:
511880
Indices:
Prime All Share
Listed:
Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
11 88 0 Solutions AG is a Germany-based communication company. The Company provides directory assistance and call center services. Its activities are divides into two segments: Directory Assistance and Digital. The Directory Assistance segment provides services related to inquires made at by phone for information regarding to phone numbers, pre-dial numbers and addresses. The Digital segment includes advertisements on the Company's platforms and Websites. The Company also offers online marketing services related to Google AdWords, Google My Business, social media Websites and company profiles on platforms, as well as tools and market analyses, and software for data, address and network management. The Company operates in Germany, Italy and Spain.