NFON AG benefits from increasing digitalization of business communication

  • Recurring revenues grow by 28.0% compared to the previous year
  • Share of recurring revenues increases to 87.6%
  • Adjusted EBITDA clearly positive at EUR 1.4 million
  • Seats expanded by 21% to 494,132
  • Forecast for 2020 as a whole confirmed

Munich, August 20, 2020 – NFON AG (together with its subsidiaries referred to as “NFON” or the “Company”), the only pan-European cloud PBX provider (cloud telephone system), published its 2020 Half Year Report today. Accordingly, NFON has taken advantage of the momentum of increasing digitalization in business communication. Recurring revenues increased by 28.0% to EUR 28.7 million compared to the previous year (H1 2019: EUR 22.4 million). Total revenues increased by 24.5% to EUR 32.8 million (H1 2019: EUR 26.3 million). Overall, recurring revenues thus accounted for 87.6% of total revenues (H1 2019: 85.2%). ARPU (Average Revenue Per User), i.e. the average recurring revenue across all services, sales channels and countries per user, also developed positively. In the first half of 2020, this amounted to EUR 9.83 after EUR 9.76 the previous year. This increased ARPU with a very high proportion of recurring revenues is reflected accordingly in the development of earnings. Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 0.8 million in the first half of 2020 (H1 2019: EUR -3.8 million). Adjusted EBITDA was even clearly positive at EUR 1.4 million (H1 2019: EUR -2.6 million).

Hans Szymanski, CEO & CFO of NFON AG, is quite satisfied: “The increased home office activity since the beginning of March has led to an increased demand for our cloud-based solutions and a jump in revenue from voice minutes. During the second quarter, this extraordinary increase returned to normal. Overall, this is the reason for the positive revenue development of NFON. However, we are also observing a completely different effect: The good practical experience with flexible telephony and conference calls from the cloud is convincing customers and is providing additional momentum in the market for cloud telephony. We at NFON will benefit from this.

Szymanski sees a solid basis for the rest of the year with a 21% increase in the number of seats operated by customers to 494,132 as of June 30, 2020 (June 30, 2019: 408,393). At the same time, uncertainties remain as to how the economic situation in Europe and worldwide will develop and what impact this may have on NFON. In particular, the markets in Spain, Italy and France are currently still very challenging.

Against this backdrop, NFON also confirms its current forecast for the full year. “Overall, the development of the first half year once again underscores the potential of our business model. Accordingly, our strategic focus remains clearly on growth with the associated investments. The implementation of our strategy guides us and clearly indicates the way forward,” said Szymanski.

 EUR million  H1 2020H1 2019 Change  Q2 2020 Q2 2019Change‌
 Total revenue  32.8 26.3 24.5% 16.4 14.2‌15.1%
 Recurring revenues  28.7 22.4   28.0% 14.6 12.0‌21.5%
 Share of recurring revenues  87.6% 85.2.%  89.3% 84.7%
 Non-recurring revenues  4.1 3.9 4.3% 1.7 2.2‌-20.0%
 Share of non-recurring revenues  12.4% 14.8% 10.7%  15.3%
‌ARPU blended1 ‌EUR 9.83‌EUR 9.76‌0.8%‌9.79‌9.77‌0.0%

Seat growth <span style="background-color:transparent">(June 30)</span>

‌494,132‌408,393‌21.0%
‌EBITDA ‌0.8‌-3.8‌n/a‌0.9‌-2.1‌n/a
‌Adj. EBITDA2 ‌1.4‌-2.6‌n/a‌1.1‌-1.7‌n/a

1 based on average number of seats per month in each year
2 Adjusted for retention bonus, stock options, expenses for capital increase AOC, M&A expenses, expenses for the acquisition of DTS

The complete report for the first half of 2020 and further information can be found on the IR website of NFON AG at corporate.nfon.com.

Investor Relations Contact

NFON AG
Sabina Prüser
Head of Investor Relations
+49 89 45300 134
sabina.prueser@nfon.com

Media Contact

NFON AG
Thorsten Wehner
Vice President Public Relations
+49 89 45300 121
thorsten.wehner@nfon.com

About NFON AG

Headquartered in Munich, NFON AG is the only pan-European cloud PBX provider – counting more than 40,000 companies across 15 European countries as its customers. With Cloudya, NFON offers an easy-to-use, independent and reliable solution for advanced cloud business communications. Further premium and industry solutions complete the portfolio in the field of cloud communications. With our intuitive communications solutions, we enable European companies to improve their work a little, every single day. NFON is the new freedom in business communication. corporate.nfon.com/de/

Disclaimer

This announcement is not an offer of securities for sale in the United States of America. The securities of the Company have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) and may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act. No public offering of securities of the Company is being made in the United States of America and the information contained herein does not constitute an offering of securities for sale in the United States of America, Canada, Australia, Japan or any other jurisdiction in which such offering would be unlawful. This announcement is not for release, publication or distribution directly or indirectly in or into the United States of America, Australia, Canada, Japan or any other jurisdiction in which the distribution or release would be unlawful or to U.S. persons.