'- Corporate revenues of € 77.2 million (prior year: € 95.2 million)
- EBITDA of € 624K (prior year: € 220K)
- Outlook for 2015: revenues at the prior year level, with 100% higher operating income
Munich, June 11, 2015: Listed on the Entry Standard of the Frankfurt Stock Exchange, Ecommerce Alliance AG (ISIN DE000A12UK08) released its 2014 Annual Report today. During the prior year, the customary business units, Services and Brands, delivered much better operating results, whereas the new segment, Mobile, saw an unexpected drop in revenues and the bottom line.
In the reporting year, Ecommerce Alliance AG (“ECA”) generated revenues of € 77.2 million versus € 95.2 million in the prior year. This decline of € 18.0 million stems from mid-year deconsolidation of Getmobile GmbH and a major loss in the trading business of the investment company WAP Telecom GmbH. This development arose, among others, from unexpected temporary sales problems encountered by the world’s largest smartphone manufacturer.
In spite of lower revenues from the mobile business unit, FY2014 closed with significantly higher operating EBITDA of € 624K compared with € 220K in the prior year, an increase of 184%.
In the face of the major change in market conditions for the mobile segment, ECA decided to concentrate its future strategy for growth as an investment company more on its successful segments, Services and Brands, while maintaining a profitable trading business. In the process of such concentration during the past year, ECA optimized all company processes, conducted a 360-degree analysis of each brand company’s operations, and undertook comprehensive valuation adjustments in the balance sheets to account for all known risks.
Within the scope of the annual impairment test, write-offs arising from unfulfilled expectations during the reporting year were determined pursuant to the IAS 36 standard, and fair value adjustments were made per the IAS 39 standard. The special effects of goodwill and asset write-offs amounted to € 12.1 million in 2014. EBIT in 2014 after special effects was minus € 12.3 million. Adjusted for special effects, EBIT improved significantly by 79% to minus € 162K (prior year: minus € 788K). This is the outcome of clear advances in profitability, achieved in core ECA businesses in FY2014.
Daniel Wild, Chairman of the Board of Ecommerce Alliance AG, sees the improved profitability as a positive sign of corporate restructuring: “In FY2014, we successfully executed an ambitious restructuring program of our firm within a short time.” The board expects another big jump in profits this fiscal year. Daniel Wild adds, “We will continue to achieve organic growth of our profitable business units, Services and Brands, and strengthen them sustainably though acquisitions. Despite adjustments to our portfolio, we expect revenues in FY2015 to match those of the prior year. At the same time, we anticipate a 100% boost in operating results.”
