ecotel communication ag, a leading German quality provider for business customers, announced its financial results for the first half of 2026, demonstrating continued stable business development. The company reported a significant increase in group revenue, which rose by 14.7% to EUR 65.4 million, up from EUR 57.0 million in the same period last year. This growth was primarily driven by the ecotel Wholesale segment, where revenue climbed to EUR 40.7 million from EUR 32.1 million, fueled by strong performance in the Voice business and positive developments in the Data business. The Business Customer segment also remained stable, contributing EUR 24.7 million in revenue.
The company's profitability metrics improved as well. Gross profit increased to EUR 18.7 million from EUR 17.8 million, while EBITDA rose to EUR 3.7 million compared to EUR 3.2 million in the prior-year period. EBIT also saw a substantial increase, reaching EUR 1.5 million versus EUR 0.9 million previously. Net income grew to EUR 0.9 million from EUR 0.7 million, and earnings per share (EPS) improved to EUR 0.25 from EUR 0.20. These results underscore ecotel's ability to enhance value creation and maintain operational stability in a competitive market.
Cash flow generation was a highlight of the first half. Cash flow from operating activities turned positive at EUR 2.8 million, compared to a cash outflow of EUR 0.6 million in the prior-year period. Free cash flow also improved dramatically to EUR 0.9 million, reversing a negative free cash flow of EUR -2.8 million in the previous year. As of June 30, 2026, the company reported cash and cash equivalents of EUR 1.4 million, and net financial assets improved by EUR 3.5 million year-on-year to EUR 1.4 million, reflecting a stronger balance sheet.
Looking ahead, ecotel has announced that in August 2026, it will make a VAT payment of EUR 2.8 million to avoid additional interest charges. The company maintains its differing legal opinion and has filed legal remedies against the assessment notice. This payment will impact cash flow in the second half of the year, but the company emphasizes that it continues to have a solid financial and liquidity position. The management remains focused on maintaining stable operating performance, expanding higher-margin services, and sustainably strengthening the Group's financial position and balance sheet structure.
Based on the positive first-half development, ecotel confirms its expectations for the full fiscal year 2026. The company anticipates revenue within the guided range, likely at the lower end, as it navigates the impact of the VAT payment. For more details, investors can access the original release at NewMediaWire or visit ecotel's website at www.ecotel.de.
