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  ---------------------------------------------------------------------  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  ---------------------------------------------------------------------  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, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de  ---------------------------------------------------------------------   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   ---------------------------------------------------------------------   279060 23.07.2014                                                        
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