DGAP-News

net mobile AG is on a steady course of recovery after a difficult 2013 financial year

DGAP-News: net mobile AG / Key word(s): Quarter Results/Interim Report
net mobile AG is on a steady course of recovery after a difficult 2013
financial year

23.07.2014 / 16:22

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CORPORATE NEWS

net mobile AG is on a steady course of recovery after a difficult 2013
financial year

- net mobile AG has increased its revenue in the first quarter of 2014 by
25,2% to EUR 36.8 million (Q1 2013: EUR 29.4 million)

- net mobile AG returns to profitability with an EBITDA of EUR 2.7
million (Q1 2013: loss EUR 0.4 million)

Dusseldorf, July 23, 2014 - net mobile AG (ISIN: DE0008137852), is a
leading international full-service provider of mobile value-added services
and payment solutions. The company initiated a series of measures in 2013
to discontinue non-profitable business activities and streamlined other
business units with a leaner personnel structure. The company continued to
implement these initiatives in the first quarter of 2014 and the
organisational structure to support that.

The organisational structure is divided into four customer-oriented sales
units: "Reselling" (sub-divided into: "Reselling net-m Brand" and
"Reselling First Brand"), "Carrier & OTT" (sub-divided into: "B20 & PB" and
"Global Business Solutions"), "Online & TV" and "Bank/PSP".

The revenues for the first quarter of 2014 increased by 25.2% to EUR 36.8
million and gross margin increased by 103% to EUR 6.8 million compare to
the same period last year. The increase in revenues was largely contributed
by "Reselling" where the revenues grew by 17% to EUR 26.3 million due to
new customers. The increase in margin was mainly driven by high margin
segment "Global Business Solutions" where the margin grew by 272% to EUR
2.9 million due to significant improved in business terms and activity with
NTT DOCOMO Inc. (DOCOMO), net-m's majority shareholder.

The first quarter also saw the company returning to profitability. The
EBITDA (after valuation adjustments) improved by EUR 3.1 million to EUR 2.7
million (Q1 2013: loss EUR 0.4 million). The consolidated net profit
improved by EUR 2.8 million to EUR 0.3 million (Q1 2013: loss EUR 2.5
million).

The equity ratio increased from 10.6% to 11.6% in the first quarter due to
increase in profits and decrease in total assets.

In the first quarter, non-banking operations (excluding net-m Privatbank
1891 AG) generated positive operating cash flow of EUR 1.68 million and Net
financial debt was reduced by EUR 2 million to EUR 43.4 million. The
banking operations of net-m Privatbank 1891 AG generated negative cash