Net mobile : restructuring program continues to show planned progress

Gross margin increased from 22.1% to 25.8% compare to the same period last year; IAV (Sales after deducting directly attributable cost of sales) grew by kEUR 2,290 to kEUR 15,783; 2nd Contribution margin increased by kEUR 3,956 to kEUR 6,569

Dusseldorf, 21. August 2015 -

One of the leading international full-service provider of payment solutions and mobile value-added services, net mobile AG (ISIN: DE000813852), announces today its results for the first half of 2015 today. Its global client base includes national and global mobile telecommunications providers, media companies, portals, branded companies and TV channels, for which complete white label solution services such as Direct Carrier Billing and Mobile TV are provided.

Consolidated sales for the first six months dropped by kEUR 7,181 to kEUR 65,217 (Q1 - Q2 2014: kEUR 72,398 TEUR). This corresponds to a reduction of approximately 9.9%. The gross margin continued to show a positive trend and increased from 22.1% to 25.8%. The IAV (Industrial Added Value) increased from kEUR 13,493 to kEUR 15,783 (kEUR +2,290) as per expectations. The 2nd Contribution Margin increased by 151% to kEUR 6,569 (Q1 - Q2 2014: kEUR 2,613). The segment "Payment Solutions" sales reduced by kEUR 4,577 to kEUR 46,988 (Q1 - Q2 2014: kEUR 51,565) in the first half of 2015 with an IAV of kEUR 11,121 (Q1 - Q2 2014: kEUR 8,233). The main reason for the reduction in sales were new regulations in the market for the mobile payment business. The segment "B2O & Media" achieved sales of kEUR 3,729 which is kEUR 930, about 20.0%, lower than previous year (Q1 - Q2 2014: kEUR 4,659). The drop in sales resulted from declining business activities in low margin legacy product lines in this segment. The IAV only dropped by 4.3% to kEUR 2,343 (Q1 - Q2 2014: kEUR 2,449). The segment "Voice Solutions" increased its sales by kEUR 639 to kEUR 10,114 (Q1 - Q2 2014: kEUR 9,475). This represents an increase of around 6.7%, which resulted primarily from the acquisition of new key accounts following a reorganisation in sales. IAV was kEUR 835 up only 1.9% on the previous year (Q1 - Q2 2014: kEUR 851). The segment "B2C" sales were kEUR 4,386, a drop of kEUR 2,313 compare to previous year's sales (Q1 - Q2 2014: kEUR 6,699). The IAV also dropped by 24.3% to kEUR 1,484 compared to the previous year (Q1 - Q2 2014: kEUR 1,960). The main reason for the drop in sales was the loss of a major client in the Spanish market.

The reorganisation carried out last year is now showing planned effects. Personnel expenses dropped to kEUR 6,859 (Q1 - Q2 2014: kEUR 7,770).

The volume of depreciation amounted to kEUR 5,132 in the first half of 2015 (Q1 - Q2 2014: kEUR 5,198), thus resulting in a reduction of kEUR 66.

Net income also improved compare to the same period last year to kEUR 1,684 (Q1 - Q2 2014: kEUR -704).

Outlook

The restructuring program of net mobile AG comprises three essential elements:

• Clear priorities and investments in the capabilities of the company and its employees
• Reorganisation for growth, for the creation of an agile, well-aligned organisation
• Optimisation of costs, as an ongoing process to improve the efficiency and effectiveness of the business units.

The resulting measures showed planned impact in all areas of the company in the first half of 2015. The new management of the net mobile Group is therefore motivated to continue to implement the restructuring program and the planned activities associated with it, so as to be more efficient and expand the profitability of the business units. The main shareholder of net mobile AG supports this development and further encourages it with financial support.

net mobile AG is a leading international full-service provider of payment solutions and mobile value added services. The company, founded in November 2000, is regarded as an innovation leader in the marketplace. Clients worldwide include national and global mobile telecommunication providers, media companies, online shopping portals, brand name companies and television networks, for which complete white label solutions such as direct carrier billing and mobile television services are provided. Since December 2009, NTT DOCOMO, INC. is the main shareholder with over 87% share ownership.www.net-mobile.com.