ecotel communication ag, a leading German quality provider for business customers, announced its financial results for the first half of 2026, demonstrating continued stable business development. The company reported a 14.7% increase in group revenue to EUR 65.4 million, up from EUR 57.0 million in the prior-year period. This growth was primarily driven by the ecotel Wholesale segment, which saw revenue rise to EUR 40.7 million compared to EUR 32.1 million in the previous year, with the Voice business being the main contributor. The Business Customer segment also remained stable, generating revenue of EUR 24.7 million.
The company's gross profit increased to EUR 18.7 million from EUR 17.8 million, while EBITDA improved to EUR 3.7 million (previous year: EUR 3.2 million) and EBIT rose to EUR 1.5 million (previous year: EUR 0.9 million). Net income increased to EUR 0.9 million, with earnings per share (EPS) climbing to EUR 0.25 from EUR 0.20 in the prior year. Cash flow from operating activities turned positive, reaching EUR 2.8 million compared to a cash outflow of EUR 0.6 million in the previous year, and free cash flow also improved significantly 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. However, in August 2026, ecotel will make a VAT payment of EUR 2.8 million to avoid additional interest charges, despite maintaining its differing legal opinion and having filed legal remedies against the assessment notice. This payment will impact cash flow in 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, anticipating revenue within the guided range, likely at the lower end. Management remains focused on maintaining stable operating performance, expanding higher-margin services, and sustainably strengthening the group's financial position and balance sheet structure. The company's strategic focus on 'cloud & fiber' positions it well in the German telecommunications market's growth areas.
For more information, visit ecotel's website or view the original release on NewMediaWire.
