Munich, April 11, 2019 – NFON AG (along with its subsidiaries "NFON" or the "Company"), the only pan-European service provider of cloud telephone systems (Cloud PBX), confirms the positive business development in 2018. Based on final and audited figures, NFON AG increased sales by 20.7% to EUR 43.0 million in financial year 2018 (previous year: EUR 35.7 million). Revenues from recurring revenues even increased by 24.6% to EUR 34.6 million from EUR 27.8 million in the previous year. At 80.4% (previous year: 77.9%), the share of total revenues is at the top of the forecasted range of 75% and 80% respectively. The main driver of achieved revenue growth is the continuously increasing number of customer-operated extensions ("seats"). The number of seats increased by 26.6% compared the previous year to more than 320,000 (previous year: 253,000). This positive development confirms the scalability of the business model and the sustainable attractiveness of NFON AG's products and services.
In addition to the major operational progress in 2018, NFON AG achieved key milestones in its growth strategy in the first eleven months after its stock market debut. At the product level, the new NFON core product Cloudya laid the foundation for the planned expansion of the UCaaS product portfolio ("Unified-Communications-as-a-Service"). With a view to international expansion, NFON prepared the entry into the Italian market in the second half of 2018 and finalized it in March 2019. The company is planning its entry into the important French market in the second quarter of 2019. In addition, NFON acquired Deutsche Telefon Standard AG (DTS) at the beginning of 2019 as part of its selective M&A measures in the highly fragmented cloud telephony market. With the acquisition of the specialist for SIP trunk technology NFON complements its cloud product portfolio, making the NFON Group's offer unique in Europe. At the same time, the acquisition increases the customer base of the NFON Group to over 370,000 seats and over 35,000 SIP trunk channels and expands the European partner network to more than 2,000 partners. Following the acquisition, NFON appointed Thomas Muschalla as Managing Director of DTS additionally to its position as NFON’s Vice President of Sales at the beginning of April. He will be working together with Ulrich Petry, who has been Chairman of the Management Board for many years, to offer DTS powerful dual leadership with many years of experience in sales, sales support and marketing.
Hans Szymanski, CEO and CFO of NFON AG: "We have consistently implemented our growth strategy at all levels in the first 11 months after the IPO. In doing so, we not only achieved our self-imposed operational goals, but also realized important strategic milestones in the shortest possible time. It therefore must be noted that our products are being very well received by the market, and we are doing what we have promised and delivering what we have announced! We are therefore very well positioned to further scale our business model and continue to grow faster than the market. Because our goal is clear: we want to become number one for cloud telephony in Europe."
For 2019, the Management Board expects to accelerate its dynamic growth course even further. The reasons for this assumption are its continuing international expansion, the completed acquisition of Deutsche Telefon Standard AG and the introduction of the NFON core product Cloudya. With regard to sales, the company is therefore planning a growth rate of between 40% and 45% for 2019 compared with the previous year. The share of recurring revenues in total revenues is expected to be between 75% and 80% for the year as a whole. With regard to the seats operated by the customer, NFON AG plans to achieve growth of at least 45% in 2019 as a whole.
As of today, the fully audited report for financial year 2018 is not only available for download in the Investor Relations section, but all of the information is also integral to the redesigned corporate website. In doing so, NFON affirms the importance of a continuous, consistent and transparent dialog with the capital market. Whether print, digital or web-based, you can always stay informed about NFON.
Final and audited figures for fiscal 2018 at a glance:
|EUR million||2018||2017||Q4 2018||Q4 2017|
|Share of recurring revenue to total revenue||80.4%||77.9%||79.0%||82.8%|
|Share of non-recurring revenue to total revenue||19.6%||22.1%||21.0%||17.2%|
|Blended ARPU (EUR)||9.92||10.32||-3.9%||9.82||10.72||-8.4%|
About NFON AG
Headquartered in Munich, NFON AG is the only pan-European cloud PBX provider – counting more than 30,000 companies across 14 European countries as 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/en/
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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. In the United Kingdom, this information is directed at and/or for distribution only to (i) investment professionals falling within article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"), or (ii) high net worth companies falling within article 49(2)(a) to (d) of the Order (each such person hereinafter a "relevant person"). Any person who is not a relevant person should not act or rely on this information or any of its contents. This release is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company.Group and its subsidiaries, including assessments, estimates and forecasts regarding the financial position, business strategy, plans and objectives of management and future operations of NFON and the NFON Group. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the results of operations, profitability, performance or results of NFON or the NFON Group to differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are made as of the date of this press release and are based on numerous assumptions that may prove to be incorrect. NFON makes no representations and assumes no liability with regard to the proper presentation, completeness, correctness, appropriateness or accuracy of the information and assessments contained herein. The information contained in this press release is subject to change without notice. They may be incomplete or abbreviated and may not contain all material information relating to NFON or the NFON Group. NFON assumes no obligation to publicly update or revise any forward-looking statements or other information contained herein, whether as a result of new information, future events or otherwise. This press release is not an offer to buy or subscribe for securities and should not be construed as a basis for investment decisions in NFON or the NFON Group, in whole or in part.