DGAP-News

NFON AG publishes interim report and confirms growth course in 2020 - Seite 2

The average revenue per user (ARPU) rose to EUR 9.77 in the 2020 reporting period (9M 2020: EUR 9.71) and is mainly attributable to increasing work from home and the resulting higher call volume. The increased ARPU and the very high share of recurring revenues as well as the associated improved gross profit had a correspondingly positive impact on the development of earnings. At the same time, expenses for travel and marketing activities, for example, were lower than last year. Earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to EUR 1.8 million in the first nine months of 2020 (9M 2019: EUR -5.6 million) and improved by around EUR 7 million compared to the same period last year. Adjusted EBITDA even improved to EUR 2.5 million (9M 2019: EUR -4.2 million).

"By posting a 25% increase in recurring revenues, we maintained our high growth momentum in 2020 and are benefitting from the increasing digitalisation of business communication. At the same time, we recorded an extraordinary increase in earnings, which demonstrates the high earnings potential of NFON's business model. It is also clear that we want to become the number 1 for cloud telephony in Europe and that NFON's strategic focus is therefore on growth and gaining further market share," concluded Hans Szymanski, CEO and CFO of NFON AG.

For 2020 as a whole, the company expects to achieve a growth rate of between 17% and 19% for the seat base. In terms of recurring revenues, the Management Board expects a growth rate of between 22% and 26% for 2020. The high growth rate of recent years will thus be maintained. The share of recurring revenues in total revenue is expected to be between 85% and 90%.

in EUR thousands	9M 2020	9M 2019	Change	Q3 2020	Q3 2019	Change
Total revenue	49,439	41,467	19.2%	16,669	15,139	10.1%
Recurring revenues	43,706	35,042	24.7%	15,011	12,623	18.9%
Share of recurring revenues to total revenue	88.4%	84.5%		90.1%	83.4%
Non-recurring revenues	5,733	6,425	-10.8%	1,658	2,517	-34.1%
Share of non-recurring revenues to total revenue	11.6%	15.5%		10.0%	16.6%
Cost of materials	10,075	9,775	3.1%	3,242	3,729	-13.1%
Gross profit	39,364	31,692	24.2%	13,427	11,411	17.7%
Gross profit margin	79.6%	76.4%		80.6%	75.4%
Personnel expenses	20,859	18,341	13.7%	6,534	6,375	2.5%
Other operating expenses	17,258	19,253	-10.4%	6,000	7,037	-14.7%
of which marketing expenses	4,995	6,044	-17.4%	1,801	2,101	-14.3%
of which