DGAP-News: 11880 Solutions AG publishes nine-month figures: Company back on a growth trajectory
09.11.2017 (www.4investors.de) -
DGAP-News: 11880 Solutions AG / Key word(s): 9-month figures
11880 Solutions AG publishes nine-month figures: Company back on a growth trajectory
09.11.2017 / 08:00
The issuer is solely responsible for the content of this announcement.
Essen, 9 November 2017 - 11880 Solutions AG has steered its operations back to a growth trajectory. The Company generated revenues of EUR 30.7 million in the reporting period (9M 2016: EUR 34.0 million). In the first nine months of the current financial year, the digital business recorded the strongest sales performance in the Company's history. This division's revenues came to EUR 19.9 million at 30 September 2017 (9M 2016: EUR 21.7 million) and owing to yearly customer contracts were still impacted by prior-period revenue and customer losses. In the reporting period, however, new customer acquisitions were up more than threefold on the previous year, lifting revenues from new customers by 50 percent. The new strategy of addressing a much broader target group with lower-priced entry-level products is working and is generating sustained revenue growth. The effects of this trend will lead to a tangible improvement in revenues in the 2018 financial year.
In the directory assistance business, the market-driven decrease in revenues was mitigated substantially by the expansion of the third-party call centre business. While caller volumes at directory assistance providers are declining by around 20 percent per year, the revenue generated by 11880 Solutions AG in this division fell just 12 percent year-on-year to EUR 10.8 million at 30 September 2017 (9M 2016: EUR 12.3 million).
EBITDA of 11880 Solutions AG amounted to EUR -2.0 million at 30 September 2017 (30 September 2016: EUR -1.3 million). Although personnel and administrative expenses were reduced by around 20 percent year-on-year, earnings were still depressed by one-time restructuring costs of EUR 1.1 million. "Due to our better than expected liquidity position, we were able to bring forward a number of measures such as the closure of our Munich site. While this will impact on EBITDA for 2017 as a whole, it will increase it in 2018," explained Christian Maar, Chief Executive Officer of 11880 Solutions AG.
Over the coming months, the 11880.com platform and associated specialist portals will continue to be expanded in the digital business along with the meta search engine for reviews of werkenntdenBESTEN to give consumers and companies even more opportunities for direct communication. The focus in the directory assistance business will be on further expansion of the third-party call centre business.
"This year we have achieved an incredible amount and have far exceeded our internal projections in all divisions. All the same, we are aware that we are demanding a lot of our shareholders, but it takes time to turn a tanker into a speed boat," said Christian Maar.
The full 2017 nine-month report of 11880 Solutions AG is available at:https://ir.11880.com/english/reports
11880 Solutions AG
Tel.: 089/ 8954-1188
Fax: 089/ 8954-1189
09.11.2017 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
11880 Solutions AG
Fraunhofer Str. 12a
+49 089 - 89 54 0
+49 089 - 89 54 10 10
Prime All Share
Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
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