DGAP-News

Francotyp-Postalia Holding AG: Francotyp-Postalia demonstrates strength in first six months of 2016 with further revenue and EBITDA growth

DGAP-News: Francotyp-Postalia Holding AG / Key word(s): Half Year
Results/Half Year Results
Francotyp-Postalia Holding AG: Francotyp-Postalia demonstrates strength in
first six months of 2016 with further revenue and EBITDA growth

25.08.2016 / 06:50
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Corporate News
Francotyp-Postalia demonstrates strength in first six months of 2016 with
further revenue and EBITDA growth

- Revenue up 5.4% to EUR 100.3 million

- EBITDA rises by 2.5% to EUR 14.6 million

- Free cash flow improves significantly to EUR 6.3 million

- First operational excellence measures implemented

- Management Board confirms forecast for year as a whole

Berlin, 25 August 2016 The digital mailroom provider Francotyp-Postalia
Holding AG remains on a profitable growth path. Revenue increased to EUR
100.3 million in the first half of 2016 compared with EUR 95.2 million in
the previous year. On a quarterly basis, revenue rose from EUR 45.7 million
in the second quarter of 2015 to EUR 49.0 million. The company recorded
growth in its traditional franking machine business as well as in its new
Mail Services and Software business areas. Against the market trend,
franking machine revenue increased to EUR 63.1 million in the first half of
2016 compared with EUR 62.2 million in the same period of the previous year
despite the growing headwind resulting from the strong euro. The company's
growth was due to the success of the multiple award-winning PostBase
family. In 2016, the FP Group introduced two new PostBase systems for
larger mail volumes on the first markets.

In the new business areas, the FP Group increased its revenues by 12.6% to
EUR 37.2 million in the first half of 2016. The Mail Services segment
relating to the collection, franking, sorting and delivery of business mail
with postage discounts were main contributors to this success. Revenue in
this area increased by 15.3% to EUR 30.1 million.

EBITDA and EBIT growth
The success in the business areas is reflected in the Group's earnings for
the first half of 2016. EBITDA improved by 2.5% to EUR 14.6 million, while
EBIT increased by 3.5% to EUR 6.3 million despite the slightly higher level
of amortisation and depreciation as anticipated. Consolidated net income
was unchanged year-on-year at EUR 4.0 million. The company has already
implemented operational excellence measures aimed at optimising the tax