ecotel communication ag, a leading German quality provider for business customers, announced its financial results for the first half of 2026, highlighting 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 driven primarily by the ecotel Wholesale segment, which saw revenue rise to EUR 40.7 million from EUR 32.1 million, fueled by strong performance in the Voice business and positive developments in the Data business. The Business Customer segment remained stable, contributing EUR 24.7 million in revenue.
Gross profit improved to EUR 18.7 million from EUR 17.8 million, reflecting enhanced value creation. EBITDA increased to EUR 3.7 million (prior year: EUR 3.2 million), and EBIT rose to EUR 1.5 million (prior year: EUR 0.9 million). Net income grew to EUR 0.9 million, with earnings per share rising to EUR 0.25 from EUR 0.20. These figures demonstrate the company's ability to enhance profitability despite a competitive market environment.
A notable highlight was the significant improvement in cash flow. Cash flow from operating activities turned positive, reaching EUR 2.8 million versus a cash outflow of EUR 0.6 million in the previous year. Free cash flow also improved substantially to EUR 0.9 million, compared with a negative EUR 2.8 million in the prior-year period. As of June 30, 2026, the group reported cash and cash equivalents of EUR 1.4 million, and net financial assets improved 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, although it maintains its differing legal opinion and has filed legal remedies against the assessment notice. This payment will impact cash flow for the remainder of the year, but the company remains confident in its solid financial and liquidity position.
Based on the first-half performance, ecotel confirms its expectations for fiscal year 2026. The company continues to expect revenue within its guided range, likely at the lower end, while management remains focused on maintaining stable operating performance, expanding higher-margin services, and strengthening the group's financial position and balance sheet structure. This strategy aligns with ecotel's long-term focus on the growth areas of cloud and fiber in the German telecommunications market.
