Ecotel Communication AG Reports Positive Growth Across All Segments in 2023 Annual Report

Ecotel Communication AG revealed a successful financial year for 2023, reporting progress in all sectors with noteworthy advancements in its B2B business. The company, which pivoted towards core segments in 2022, saw an overall revenue increase of 14%, hitting €106.3 million. The growth was bolstered by lucrative orders in the business customer segment and significant achievements in wholesale operations.

Despite a slight decline in adjusted earnings per share from €1.39 to €0.94, Ecotel's strategic investments in cloud and fiber technologies yielded initial sales growth and a positive outlook for the B2B segment. The company secured two major contracts totaling over €20 million, set to significantly impact sales from 2025 onwards. The B2B revenue for 2023 amounted to €46.2 million, slightly up from the previous year, reflecting the company's strategic shift and resilience amidst transformation-related challenges.

Furthermore, Ecotel's wholesale segment experienced a substantial revenue jump to €60.1 million, thanks to the successful expansion of data line marketing and an increase in cross-network telephone minute trading. This led to a gross profit increase and a direct reflection in the operating EBITDA, which rose by €0.6 million to €1.2 million.

In anticipation of the upcoming annual general meeting, Ecotel plans to propose a dividend payment representing 50% of the adjusted EPS, underscoring its commitment to shareholder value amidst its growth trajectory.

Looking ahead, Ecotel remains optimistic, projecting double-digit sales growth in its B2B business until 2026, driven by its focus on cloud and fiber technologies and the expected full implementation of its major projects. The management's forecast for 2024 anticipates continued revenue growth, with plans to enhance sales and operating EBITDA significantly in the following years.