ecotel communication ag, a leading German quality provider for business customers, announced its financial results for the first half of 2026, demonstrating stable business development and improved performance across key metrics. Group revenue increased by 14.7% to EUR 65.4 million, up from EUR 57.0 million in the same period last year. This growth was primarily driven by the ecotel Wholesale segment, which saw revenue jump to EUR 40.7 million from EUR 32.1 million, fueled by strong performance in the Voice business and positive contributions from the Data business.
The Business Customer segment maintained stable performance, generating revenue of EUR 24.7 million. Gross profit rose to EUR 18.7 million compared with EUR 17.8 million in the prior-year period. EBITDA improved to EUR 3.7 million from EUR 3.2 million, while EBIT increased to EUR 1.5 million from EUR 0.9 million. Net income climbed to EUR 0.9 million, with earnings per share (EPS) rising to EUR 0.25 from EUR 0.20.
Cash flow generation was significantly stronger in the first half of 2026. Cash flow from operating activities amounted to EUR 2.8 million, a notable turnaround from a cash outflow of EUR 0.6 million in the prior-year period. Free cash flow also improved substantially to EUR 0.9 million, compared with a negative EUR 2.8 million in the previous year. As of June 30, 2026, the Group reported cash and cash equivalents of EUR 1.4 million and net financial assets of EUR 1.4 million, an improvement of EUR 3.5 million year-on-year.
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 for the remainder of the year, but the company states it 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 expects revenue within its 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.
These results highlight ecotel's resilience and growth in the competitive telecommunications market, with a strategic focus on cloud and fiber services for business customers. The company's ability to improve profitability and cash flow while managing legal and tax obligations underscores its operational efficiency. For industry observers, ecotel's performance may signal positive trends in the German B2B telecom sector, particularly in wholesale voice and data services.
For more information, visit ecotel's website at www.ecotel.de.
