• Half year revenue at TEUR 8,634 almost at last year’s level (TEUR 8,900)
• Consolidated net profit increases to TEUR 189 (previous year: TEUR -69)
• Positive outlook for the full year 2017 confirmed

Munich, September 6, 2017 – Ecommerce Alliance AG (ISIN DE000A12UK08) published its half year results for 2017 today. The reporting period was characterised by two major developments. The management of Ecommerce Alliance AG (ECA) decided in late April to enter into a partnership with the Swiss-based company builder and new strategic anchor investor Mountain Partners AG to allow a more efficient utilisation of growth dynamics and any opportunities for further investments. From this position of strength, ECA was able to implement important business strategic projects over the course of the reporting period. That firstly included two profitable sales from the company portfolio. These were the fashion platform MYBESTBRANDS and the brand marketing expert The Native Media Inc. A few days after the end of the reporting period, the third exit this year was the sale of the minority shareholdings in InterNations, a social network for expats. The company was therefore able to meet its declared target of three to four exits in 2017 already after just seven months.

ECA has therefore set a path towards sustainably successful business development in a market environment that is unusually challenging for holding companies. During the first six months of the business year 2017, ECA achieved a revenue of TEUR 8,634, which is almost on a par with the same period of the previous year, which was TEUR 8,900. On the earnings side, media and IT costs in the company’s Shirtinator holdings were noticeably increased. The additional IT investment will ensure sustainable growth. Investment in a new sales team for the media agency getonTV GmbH during the year was made in a bid to compensate for the loss of customers in 2016 and to further expand the key account area. ECA responded to increasing competitive pressure in TV marketing with targeted investments, which negatively impacted the gross profit margin in that area during the first half year of 2017. Earnings before interest, taxes, depreciation, and amortization (EBITDA) during the first half year of 2017 was TEUR -540 in comparison with TEUR 449 year on tear, while the earnings before interest and taxes (EBIT) was reduced from TEUR 221 to TEUR -691 year on year. The financial result was improved mainly due to the sale of shareholdings after a minus of TEUR 95 during the first half of 2016 to TEUR 944 during the reporting period. The consolidated surplus after taxes for the period January 1 to June 30, 2017 is TEUR 189 against a minus of TEUR 69 year on year.

“We are right now in the middle of a period of dynamic change at Ecommerce Alliance. And we always welcome change. The new partnership with our Swiss colleagues will allow us to drive our planned three-step approach of company building, venture capital asset management and the development of mature digital companies. The capital increase will, in line with our company philosophy, be reinvested profitably, promisingly, but also with the right amount of time and patience. I am very much looking forward to the road ahead”, concludes Daniel Wild, CEO of Ecommere Alliance AG.

Ecommerce Alliance AG (ISIN DE000A12UK08) sells their minority holdings of 4% in InterNations GmbH to XING AG. The Munich-based InterNations is with its over 2.7 million members in 390 cities around the globe the largest network and information portal for people living outside their native country. The world’s most successful community for so-called “expats” (expatriates) offers comprehensive information about living and working abroad, as well as plenty of networking opportunities and most importantly: the possibility for personal exchange at more than 50,000 events and leisuretime activities, which are attended by 1.5 million people around the globe each year. XING is the leading social network platform for professional contacts with currently over 12 million members in the German-speaking region.

These two highest growth German networks are now joining together. The transaction is based on a basic purchase price for 100 percent of InterNations shares at a value of around 10 million euro. InterNations will continue as a self-sufficient business unit under its existing brand. While XING AG will continue to focus on the German-speaking home market, InterNations has had a distinct international emphasis since its founding in 2007.

I was one of the founding partners of XING in 2003 and am very excited that XING has taken on InterNations. XING AG, which is listed in TecDAX, has been a success for 14 years. InterNations with its wealth of international experience and know-how in terms of offline events is a perfect partner for XING and will allow quick expansions and developments with regards to offers and services for professionals nationally and internationally”, explains Daniel Wild, CEO of Ecommerce Alliance AG. The sale is further proof of the strategic foresight of Ecommerce Alliance AG: “We got involved in InterNations very early, because we recognised the huge potential that increased digital networking would offer individuals. Professional and private cross-border contacts and communication – direct and supported by innovative technology – these are important issues in people’s everyday lives. After the sales of MYBESTBRANDS, The Native Media Inc. and now InterNations, our planned three to four enterprise sales during the current fiscal year have already been completed. We are not just after making a quick profit. All the framework conditions must be right as well. This latest deal is also proof of the fact that the environment in Germany for profitable exits – in any aspect – is right and very much alive. We want to take advantage of that and continue with our strategy”, says Daniel Wild.