ots Ad hoc-Service: TELES AG <DE0007454902> TELES: 10 Years of Continued Strong Growth - 1999 Earning Below Budget -
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TELES: 10 Years of Continued Strong Growth - 1999 Earning Below Budget -
With a revenue increase of over DM 307 million in 1999 - up from 192 million DM in 1998, a revenue increase of approximately DM 115 million -the TELES Group achieved an annual growth rate last year of over 60 percent for the tenth time in succession.
The exact amount of the previous year's revenues will be stated in the TELES Group's audited financial statement for 1999, which will be published in April 2000. The acquisition of GRAVIS AG by TELES AG was carried out according to the "Pooling of Interest" method (US-GAAP) and was not finalized until December 1999. The "Pooling of Interest" method requires that GRAVIS AG provides certified US-GAAP financial statements as at 31st December 1998 and 31st December 1997. Until now, GRAVIS was only in possession of financial statements as at 31st March drawn up in accordance with the German Commercial Code. These statements cannot be completed earlier.
The development of revenues in 1999 corresponded almost exactly to expectations, but profits were below budget. The expansion of TELES' foreign sales caused DM 4 million in preparation costs: As it transpired while closing last year's sales, these costs are an investment for the future - no corresponding increase in revenues occurred in 1999. In addition, while reviewing the last year's annual accounts, a measure was taken which further reduces the results for 1999: A skyDSL sales partnership proved itself to be economically uninteresting after all, so that TELES withdrew from the contract. As a result, income of DM 15 million had to be relinquished. The expected 1999 profit after tax for the TELES Group will therefore amount to only approximately DM 9 million.
The year 2000 should prove for the TELES Group to be the 11th year in succession with a revenue growth of over 60 percent in comparison to the previous year: Total revenues of approximately DM 510 million are expected to be achieved this year with less than 1,200 employees. The revenue expectations for the year 2000 will be presented at a later date, due to the current reorientation of the group to its new core business fields "added-value Internet services" and "Internet Academy".
Prof. Sigram Schindler CEO, TELES AG
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