DGAP-News: net mobile AG is on a steady course of recovery after a difficult 2013 financial year

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
flows of EUR 26.7 million due to the reduction in customer deposits held by
the bank which at the end of first quarter was EUR 150 million. The decline
in customer deposits was as a result of drop in interest rates offered to
customers by the net-m Privatbank 1891 AG. For the group, the first quarter
ended with a negative cash flow of EUR 25.1 million with cash and cash
equivalents of EUR 105.6 million (2013: EUR 130.6 million).

Outlook

The company's new directional focus on its successful core areas (in
particular the payment business) strengthened and achieved a positive
improvement in revenue in these areas in the first quarter of 2014. net
mobile's major shareholder continues to provide strong financial support
and assists in further development of the business.

The measures taken by the Company have already started to show positive
effect and this improvement is expected to continue in the foreseeable
future. This has motivated the net mobile management to focus on tackling
the tasks ahead with an aim to drive cost efficiency and to further
strengthen efforts to expand profitable businesses within our core areas.

About net mobile AG 
net mobile AG is a leading international full-service provider of mobile
value added services and payment solutions. The company, founded in
November 2000, is regarded as an innovation leader in the marketplace.
Clients worldwide include national and global mobile telecommunication
providers, media companies, online shopping portals, brand name companies
and television networks, for which complete white label solutions such as
direct carrier billing and mobile television services are provided. Since
December 2009, NTT DOCOMO, INC. is the main shareholder with over 87% share
ownership. For more information please visit www.net-mobile.com.

If you have any further questions, we will be most happy to help. We will
gladly establish a direct contact to the responsible person at net mobile
AG.

Contact Person
Dennis Heisig
net mobile AG 
Fritz-Vomfelde-Str. 26-30 
DE 40547 Dusseldorf 
Tel: +49 (0) 211 970 20 - 344 
Fax: +49 (0) 211 970 20 - 999
E-Mail: dennis.heisig@net-m.de
Internet: www.net-mobile.com

Follow us on Twitter: twitter.com/netmobileag


End of Corporate News

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23.07.2014 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

DGAP's Distribution Services include Regulatory Announcements,
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Language:    English                                              
Company:     net mobile AG                                        
             Fritz-Vomfelde-Str. 26-30                            
             40547 Düsseldorf                                     
             Germany                                              
Phone:       +49 (0)211 970 20-0                                  
Fax:         +49 (0)211 970 20-999                                
E-mail:      info@net-m.de                                        
Internet:    www.net-mobile.com                                   
ISIN:        DE0008137852                                         
WKN:         813785                                               
Listed:      Freiverkehr in Berlin, Hamburg, München (m:access),  
             Stuttgart; Frankfurt in Open Market                  
 
 
End of News    DGAP News-Service  
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279060 23.07.2014                                                      
 
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