ecotel communication ag, a leading German quality provider for business customers, announced its financial results for the first half of 2026, showing continued stable business development with significant improvements in revenue, earnings, and cash flow. Group revenue increased by 14.7% to EUR 65.4 million, compared to 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 from EUR 32.1 million, fueled by strong performance in the Voice business and positive developments in the Data business. The Business Customer segment maintained a stable performance, generating revenue of EUR 24.7 million.
Gross profit grew to EUR 18.7 million, up from EUR 17.8 million in the previous year. EBITDA improved to EUR 3.7 million, compared to EUR 3.2 million, and EBIT rose to EUR 1.5 million from EUR 0.9 million. Net income increased to EUR 0.9 million, with earnings per share (EPS) rising to EUR 0.25 from EUR 0.20. The company also reported a significant improvement in cash flow, with cash flow from operating activities reaching EUR 2.8 million, a turnaround from a cash outflow of EUR 0.6 million in the prior-year period. Free cash flow improved substantially to EUR 0.9 million, compared to negative EUR 2.8 million previously.
As of June 30, 2026, the Group held 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. However, in August 2026, ecotel will make a VAT payment of EUR 2.8 million to avoid additional interest charges. The company maintains its differing legal opinion and has filed legal remedies against the assessment notice. This payment will impact cash flow in the remainder of the year, but the company remains in a solid financial and liquidity position.
Based on the first-half performance, ecotel confirms its expectations for fiscal year 2026. The company expects 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. Ecotel has been operating nationwide since 1998 and is recognized as one of the leading quality providers for business customers, focusing on the growth areas of cloud and fiber in the German telecommunications market. The parent company, ecotel communication ag, is based in Dusseldorf and, including its subsidiary, employs around 210 people.
For more information, visit www.ecotel.de.
