ecotel communication ag, a leading German quality provider for business customers, reported stable business development for the first half of 2026, with significant improvements in revenue, earnings, and cash flow. The company's group revenue increased by 14.7% to EUR 65.4 million, up from EUR 57.0 million in the prior-year period.
The Business Customer segment remained stable, generating revenue of EUR 24.7 million. Meanwhile, the ecotel Wholesale segment saw a notable increase in revenue to EUR 40.7 million, compared with EUR 32.1 million in the previous year. This growth was primarily driven by the Voice business, with the Data business also contributing positively to value creation.
Gross profit rose to EUR 18.7 million from EUR 17.8 million, while EBITDA improved to EUR 3.7 million from EUR 3.2 million. EBIT increased to EUR 1.5 million from EUR 0.9 million, and net income rose to EUR 0.9 million from EUR 0.7 million. Earnings per share (EPS) also increased to EUR 0.25 from EUR 0.20.
Cash flow from operating activities turned significantly positive, amounting to EUR 2.8 million, compared with a cash outflow of EUR 0.6 million in the prior-year period. Free cash flow also improved dramatically to EUR 0.9 million, from EUR -2.8 million. As of 30 June 2026, the group reported cash and cash equivalents of EUR 1.4 million, with net financial assets improving by EUR 3.5 million year-on-year to EUR 1.4 million.
In August 2026, ecotel will make a VAT payment of EUR 2.8 million to avoid additional interest charges. Despite this, the company maintains its differing legal opinion and has filed legal remedies against the assessment notice. The payment will impact cash flow for the remainder of the year, but the company continues to have a solid financial and liquidity position.
Based on the first-half performance, ecotel confirms its expectations for fiscal year 2026. The company anticipates revenue within the guided range, likely at the lower end. Management remains focused on maintaining stable operating performance, expanding higher-margin services, and strengthening the group's financial position and balance sheet structure.
For more information, visit ecotel's website or view the original release on NewMediaWire.
