unaudited, condensed
CONSOLIDATED
INTERIM FINANCIAL STATEMENTS
for the first half year
TABLE OF CONTENTS
CORPORATE NEWS
3
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
4
CONSOLIDATED BALANCE SHEET – ASSETS AND LIABILITIES
5
CONSOLIDATED STATEMENT OF CASH FLOWS
7
FOUNDATION OF THE GROUP
9
RESTRUCTURING OF THE COMPANY‘S ORGANISATION
9
NOTES TO THE IFRS INTERIM CONSOLIDATED FINANCIAL STATEMENT
10
CONSOLIDATED GROUP AND SHAREHOLDINGS
11
PREPARATION OF THE HALF YEAR REPORT FIGURES
12
ACCOUNTING POLICIES APPLIED IN PREPARING THE FINANCIAL STATEMENTS
12
INVESTMENTS 12
TRADE RECEIVABLES
12
OTHER CURRENT ASSETS
12
CASH AND CASH EQUIVALENTS
12
ASSETS HELD FOR SALE
13
EQUITY 13
TREASURY SHARES
13
NON-CURRENT AND CURRENT LIABILITIES
13
ASSETS, LIABILITIES, FINANCIAL POSITION
14
SALES DEVELOPMENT
14
PERSONNEL COSTS
15
AMORTIZATION AND DEPRECIATION
15
EARNINGS PERFORMANCE
15
One of the leading international full-service provider of pay-ment solutions and mobile value-added services, net mobile AG (ISIN: DE000813852), announces today its results for the first half of 2015 today. Its global client base includes natio-nal and global mobile telecommunications providers, media companies, portals, branded companies and TV channels, for which complete white label solution services such as Direct Carrier Billing and Mobile TV are provided.
Consolidated sales for the first six months dropped by kEUR 7,181 to kEUR 65,217 (Q1 - Q2 2014: kEUR 72,398 TEUR). This corresponds to a reduction of approximately 9.9%. The gross margin continued to show a positive trend and incre-ased from 22.1% to 25.8%. The IAV (Industrial Added Value) increased from kEUR 13,493 to kEUR 15,783 (kEUR +2,290) as per expectations. The 2nd Contribution Margin increased by 151% to kEUR 6,569 (Q1 - Q2 2014: kEUR 2,613). The seg-ment „Payseg-ment Solutions“ sales reduced by kEUR 4,577 to kEUR 46,988 (Q1 - Q2 2014: kEUR 51,565) in the first half of 2015 with an IAV of kEUR 11,121 (Q1 - Q2 2014: kEUR 8,233). The main reason for the reduction in sales were new regu-lations in the market for the mobile payment business. The segment „B2O & Media“ achieved sales of kEUR 3,729 which is kEUR 930, about 20.0%, lower than previous year (Q1 - Q2 2014: kEUR 4,659). The drop in sales resulted from declining business activities in low margin legacy product lines in this segment. The IAV only dropped by 4.3% to kEUR 2,343 (Q1 - Q2 2014: kEUR 2,449). The segment „Voice Solutions“ in-creased its sales by kEUR 639 to kEUR 10,114 (Q1 - Q2 2014: kEUR 9,475). This represents an increase of around 6.7%, which resulted primarily from the acquisition of new key ac-counts following a reorganisation in sales. IAV was kEUR 835 up only 1.9% on the previous year (Q1 - Q2 2014: kEUR 851). The segment „B2C“ sales were kEUR 4,386, a drop of kEUR 2,313 compare to previous year‘s sales (Q1 - Q2 2014: kEUR 6,699). The IAV also dropped by 24.3% to kEUR 1,484 compa-red to the previous year (Q1 - Q2 2014: kEUR 1,960). The main reason for the drop in sales was the loss of a major client in the Spanish market.
The reorganisation carried out last year is now showing pl-anned effects. Personnel expenses dropped to kEUR 6,859 (Q1 - Q2 2014: kEUR 7,770).
The volume of depreciation amounted to kEUR 5,132 in the first half of 2015 (Q1 - Q2 2014: kEUR 5,198), thus resulting in a reduction of kEUR 66.
Net income also improved compare to the same period last year to kEUR 1,684 (Q1 - Q2 2014: kEUR -704).
Outlook
The restructuring programme of net mobile AG comprises three essential elements:
• Clear priorities and investments in the capabilities of the company and its employees
• Reorganisation for growth, for the creation of an agile, well-aligned organisation
• Optimisation of costs, as an ongoing process to improve the efficiency and effectiveness of the business units. The resulting measures showed planned impact in all areas of the company in the first half of 2015. The new manage-ment of the net mobile Group is therefore motivated to con-tinue to implement the restructuring program and the plan-ned activities associated with it, so as to be more efficient and expand the profitability of the business units. The main shareholder of net mobile AG supports this development and further encourages it with financial support.
• Gross margin increased from 22.1% to 25.8% compare to the same period last year
• IAV (Sales after deducting directly attributable cost of sales) grew by kEUR 2,290 to kEUR 15,783 • 2nd Contribution margin increased by kEUR 3,956 to kEUR 6,569
• EBIT increased from kEUR -35 to kEUR 2,788
NET MOBILE AG’S RESTRUCTURING PROGRAM CONTINUES TO SHOW
PLANNED PROGRESS
Q1 - Q2 2015 Q1 - Q2 2014 **customized € € Sales 65.217.083,03 72.397.863,74 Cost of Sales -48.362.441,25 -56.885.844,86 Gross margin 16.854.641,78 15.512.018,88 Selling Costs -2.110.444,49 -2.107.619,56
Research and Development Costs -1.456.665,49 -1.683.444,55 General Administration Costs -5.419.483,81 -5.600.435,62
Restructuring Costs -250.000,00 -618.373,59
EBITDA Before Valuation Adjustments 7.618.047,99 5.502.145,56
Valuation Adjustments 551.549,44 -68.405,91
EBITDA After Valuation Adjustments 8.169.597,43 5.433.739,65
Amortization and Depreciation -5.131.955,23 -5.198.487,26
Other Expenses -249.909,49 -270.616,93 EBIT 2.787.732,71 -35.364,54 Interest Income 39.844,29 54.340,68 Interest Expenses -193.758,37 -211.525,73 Financial Expenses -309.339,69 -155.334,34 Financial Result -463.253,77 -312.519,39
Consolidated Year Results before Income Taxes 2.324.478,94 -347.883,93
Income Taxes -346.443,90 220.925,79
Consolidated Year Results from continuing operations 1.978.035,04 -126.958,14 Results from discontinued operation, net of tax -294.357,81 -577.151,43
Consolidated Year Results 1.683.677,23 -704.109,57
net mobile AG, Dusseldorf
Consolidated STATEMENT OF COMPREHENSIVE INCOME for the period from January 1 to June 30, 2015 (translation)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the period from January 1 to June 30, 2015 (translation)
CONSOLIDATED BALANCE SHEET as of 06/30/2015
ASSETS
Q2/2015
12/31/2014
€
€
A. Non-current Assets
I. Property, Plant and Equipment
2.110.138,05
2.402.897,06
II. Intangible Assets
22.265.688,76
24.252.231,45
III. Goodwill
9.511.607,55
9.511.607,55
VI. Deferred Tax Assets
3.819.502,21
4.050.853,80
37.706.936,57
40.217.589,86
B. Current Assets
I. Trade Receivables
27.178.038,03
32.022.438,55
II. Other Financial Assets
4.066.350,75
3.654.319,78
III. Other Non-Financial Assets
302.502,41
221.395,28
IV. Cash and Cash Equivalents
1.241.329,68
400.677,40
V. Assets Held for Sale
135.705.479,00 147.915.266,73
168.493.699,87 184.214.097,74
CONSOLIDATED BALANCE SHEET as of 06/30/2015
LIABILITIES
Q2/2015
12/31/2014
€
€
A. Equity
I. Share Capital
12.448.207,00
12.448.207,00
II. Capital Reserves
-6.629.190,68
19.750.552,65
III. Consolidated Year Results
1.683.677,23
-27.146.424,56
7.502.693,55
5.052.335,09
B. Non-Current Liabilities
I. Financial Liabilities
27.631.579,64
0,00
27.631.579,64
0,00
C. Current Liabilities
I. Provisions
141.282,20
180.365,80
II. Accounts Payable
25.053.759,82
30.202.796,34
III. Liabilities to Banks
4.011.299,09
11.246.338,47
IV. Other Financial Liabilities
17.788.483,00
38.702.913,84
V. Liabilities Held for Sale
124.071.539,14
139.046.938,06
171.066.363,25
219.379.352,51
YTD 2014
€ €
Consolidated Year Results 1.683.677,23 -27.146.424,56 + Depreciation of Intangible Assets and Tangible Fixed
Assets 6.066.343,28 11.085.699,05
+ Impairment Losses on Goodwill, At-Equity Investments
and Long-Term Financial Assets 0,00 19.719.765,35 +/- Other Non-Cash-Item Expense / Earnings and
Exchange Rate-Related Asset Changes 766.681,23 564.897,58 -/+ Profit/Loss from Divestiture of Tangible fixed Assets 0,00 249.385,95 -/+ Increase/Decrease of receivables from delivery of goods
and services 4.393.323,83 2.668.652,13
-/+ Increase/Decrease of inventories 0,00 284.366,75 -/+ Increase/Decrease deferred tax assets 346.328,34 144.970,75 -/+ Increases/Decrease of other assets not allocated to
investments or financing activities 584.134,40 -20.624.873,24 +/- Increase/Decrease of obligations from delivery of goods
and services -9.086.781,02 5.366.412,42
+/- Increase/Decrease of other libilities not allocated to
investments or financing activities 2.297.460,87 -66.802.424,72 +/- Increase/Decrease of deferred tax liabilities 0,00 0,00 = Cashflow from current business activities before
interest charges 7.051.168,16 -74.489.572,54
+ Receipts from the divestiture of intangible assets and
tangible fixed assets 20.373,54 362,13
- Payments for the production, purchase of intangible
assets and tangible fixed assets -3.304.112,67 -10.398.145,16 - Net receipts from the acquisition of companies
(Payments less acquired liquid assets) 0,00 0,00 + Receipts from sale of financial assets 7.535.011,27 14.832.542,37 - Payments for the acquisition of financial assets -736.998,97 -12.209.531,84 = Cashflow from investment activities 3.514.273,17 -7.774.772,50 Consolidated statement of cash flows
for the financial year from January 1 to June 30, 2015 (translation) net mobile AG, Düsseldorf
CONSOLIDATED STATEMENT OF CASH FLOWS
CONSOLIDATED STATEMENT OF CASH FLOWS
for the financial year from January 1 to June 30, 2015 (translation)
YTD 2014
€ €
+ Receipts from capital changes 0,00 0,00 + Receipts from the borrowing of debt 0,00 13.911.316,13 - Payments for the redemption of debt -14.407.369,65 -2.606.044,33 - Acquisition of non-controlling interests 0,00 0,00
- Repurchase of own shares 0,00 0,00
= Cashflow from financing activity -14.407.369,65 11.305.271,80 Change in liquid assets -3.841.928,32 -70.959.073,24 + Change in liquid assets from currency exchange-rate
changes 22.768,54 8.035,78
+ Cash at the start of the period 59.627.790,01 130.578.827,47
= Cash at the end of the period 55.808.630,23 59.627.790,01 Composition of liquid assets
Cash 7.087,45 9.820,10
Deposits at Central Banks 18.936.301,67 19.046.967,47 Short-Term receivables from banks/bank deposits 36.865.241,11 40.571.002,44 55.808.630,23 59.627.790,01
FOUNDATION OF THE GROUP
net mobile AG is a leading international full-service provider of mobile value added services and payment solutions. The company, founded in November 2000, it was relaunched as an independent company on 10 April 2003 and is regarded as an innovation leader in the marketplace. The products in detail:
• Provision of payment methods via telephone bills (Direct Carrier Billing, premium SMS)
• Provision and operation of IP-TV solutions
• Voice-activated telephone and interactive telecommunica-tion services
• Products for mobile phones and other devices such as ima-ges, videos and games
net mobile AG offers its clients Full Managed Services: these encompass consulting, design, application, content, billing, data transport and technical implementation.
With over 500 clients worldwide, these include national and global mobile telecommunication providers, media com-panies, portals, brand name companies and television net-works. Net mobile AG offers these customers, for instance, payment solutions for digital goods via mobile phone bills (Direct Carrier Billing), operates IPTV solutions and furni-shes voice-activated telephone and interactive telecommu-nication services.
Since 2009, the Japanese corporation NTT DOCOMO, INC, Tokyo, is the major shareholder of net mobile AG, holding 87.36% of the shares.
In the past fiscal year, net mobile AG Group consisted of the following companies:
• net-m privatbank 1891 AG (Dusseldorf), • net mobile minick GmbH (Hamburg), • First Telecom GmbH (Frankfurt am Main), • First Communication GmbH (Frankfurt am Main), • SN Telecom GmbH (Frankfurt am Main),
• net mobile Schweiz AG (Glattbrugg/Switzerland), • net mobile UK Ltd. (London/Great Britain), • net mobile Minick Spain S.L.U. (Madrid/Spain), • GOLDkiwi Media S.A. (Diegem/Belgien), • Payment United GmbH (Hamburg).
In the financial year there were the following changes in the balancing-based companies: The net mobile Verwaltungs AG was merged to net mobile AG Switzerland with a notarized contract dated 30 June 2015.
RESTRUCTURING OF THE COMPANY‘S ORGANISATION
In order to focus on the core skills of the company within the fast-paced telecommunications marketplace, net mobile AG‘s new company structure came into effect on 1 January, 2014. During the fiscal year 2013 and with the help of a well-known consulting company, net mobile AG analysed its business ope-rations and structure, discontinued various business activi-ties and streamlined other business units. In addition, branch offices outside of headquarters were diminished or closed and personnel reduced. On the one hand, this structure shif-ted the responsibility for Business Units to the Unit Leaders, hierarchically directly below Board Level; on the other hand this construction places a very specific focus on the interests
of the respective client groups. These changes also had ef-fects on the Board of net mobile AG. The aim was a leaner and thus more efficient and customer-focused organisational structure. In order to take more efficient advantages of exis-ting technical capacities, a further refinement to the organi-sational structure was realised in November 2014 as follows: The segment „Carrier & OTT“, which had included business with mobile operators as well as business with so-called Over The Top Players, was split into two separate business units. The „OTT“ segment was subsequently merged with the the-matically related business unit „Reselling net-m brand“ and
Consolidation: The Company is not required to prepare IFRS Consolidated Financial Statements in accordance with sec-tion 315a of the German Commercial Code, as its shares are not traded on a regulated market.
However, in this Consolidated Financial Statement, the Com-pany has exercised the option of voluntarily preparing the Consolidated Financial Statements in accordance with
Inter-As the Consolidated Financial statements for the year ended 31st of December 2014 were prepared in accordance with IFRS, the company does not provide financial statements reconciled with German Commercial Code. With respect to the notes to the Consolidated Financial Statements, the net mobile Group refers to the Company’s Annual Report for the year ended on the 31st of December 2014, which should be applied in evaluating the quarterly figures. The annual audits
NOTES TO THE IFRS INTERIM CONSOLIDATED FINANCIAL STATEMENT
is now managed under the Unit „Payment Solutions“. The segment „Payment Solutions“ includes the provision of pay-ment methods via mobile phone bills, also known as Direct Carrier Billing. Since the start of the now successfully com-pleted Group restructuring, net mobile AG considers Direct Carrier Billing as their core business. As a preferred partner of Google Inc. and Microsoft Corporation, net mobile AG ena-bles worldwide more than 150 million customers to pay for digital products, such as applications and games from Google Play and Windows Phone Store platforms, quickly and easily via their mobile phone bill. Furthermore, the segment „Pay-ment Solutions“ provides value-added service systems for the dispatch of paid content, information, services and text messages. The segment „Carrier“ is now listed as Business Unit „B2O & Media“ (Business to Operator and Media). This unit includes business with mobile operators. Furthermore, net mobile AG offers worldwide exclusive mobile content from a major US content provider.
Furthermore, in order to bring greater clarity into the product areas, all products for speech-based telephony and interac-tive telecommunications services from the former business unit „Reselling First Brand“ have been spun off and are now listed separately under the business unit „Voice Solutions“. The activity of this area consists of the connection and rental of landline phone numbers within in its own network as well as related or allied services.
The Business Unit „Online & TV“ is now operated under the name „B2C“ (Business to Consumer). The unit includes pro-ducts for mobile phones and other devices, such as images, videos and games.
The organisation of the Segment „Bank/PSP“ remains un-changed. Equipped with a Europe-wide full banking license and as a „Principal Member“ of the two leading credit card companies MasterCard and VISA - with licenses for card
is-suing and acquiring - the net mobile Group provides financial services within this area such as comprehensive national de-bit services, multi-domestic direct dede-bit (national and SEPA) and secure multi-currency credit card acquiring services as well as PSP (Payment Service Provider) and mobile POS so-lutions (POS = Point of Sale). Strategically established as an international transaction banking division of the Group, it has the capacity to provide automatic and seamless multi-currency acquisition services for any type of card-based tran-sactions. It also provides „Multi-Niche-Issuing“, whereby the latest features and added value for cardholders are imple-mented to simultaneously increase customer loyalty via co-branding. The Group issues both its own card products as well as a variety of customised solutions for co-branding solutions on behalf of cooperation partners.
As part of the net mobile Group reorganisation, management made the decision to sell the Segment „Bank/PSP“. In the wake of this decision, the Segment „Bank/PSP“ was decla-red a „Discontinued Operation“ in the “Disposal Group” in ac-cordance with IFRS 5, and is therefore presented separately in the full financial report. The information following uses the adjusted figures.
net mobile AG’s optimised organisational structure now re-sults in the following five Business Units:
• Payment Solutions • B2O & Media • Voice Solutions • B2C
Company Interest in share capital (in %) inclusion Form of 31.12.2014 Equity in kEUR 2014 Net profit for the period in
kEUR First Telecom GmbH, Frankfurt/Main, Germany 100 GC 937 -1,115**
First Communication GmbH, Frankfurt/Main, Germany 100*** GC -1,307 -202**
SN Telecom GmbH, Frankfurt/Main, Germany 100 GC 50 388**
net mobile Schweiz AG, Glattbrugg, Switzerland,
former: Zurich, Switzerland 100 GC -2,091 -1,337****
net mobile minick GmbH, Hamburg, Germany 100 GC 564 1,221**
net mobile UK Ltd, London, UK 100*** GC -231 542****
net mobile Minick Spain SLU, Madrid, Spain 100** GC 28 434
GOLDkiwi Media S.A., Diegem, Belgium 99.99 * GC -659 315
net-m privatbank 1891 AG, Düsseldorf, Germany 100 GC 5,979 -2,565
Payment United GmbHHamburg, Germany 100 GC -444 -279
* One share with a nominal value of ! 10 is held by former Executive Board member Edgar Schnorpfeil
for technical reasons. Minority interests have not been reported in the consolidated financial statements on account of immateriality.
** Prior to profit transfer.
*** Indirect shareholding.
**** Net profit or loss including foreign currency translation.
CONSOLIDATED GROUP AND SHAREHOLDINGS
The group of fully consolidated companies (CV) of the con-solidated financial statements as at 30 June 2015 includes the relevant associated companies in which the net mobile AG directly or indirectly holds more than 50% of the voting
rights or can exercise a controlling influence in other ways. At the reporting date, there are no minorities in the Group who hold shares in consolidated assets.
The shareholdings are follows:
All companies have drawn up individual financial statements in accordance with the local accounting standards (HGB, Swiss GAAP, UK GAAP etc.) and in local currency to the uni-form Group reporting date 31st December. Any adjustments to the IFRS (from the International Accounting Standards Board (IASB) published International Financial Reporting Standards), as adopted by the EU, will be carried out in the preparation of the consolidated financial statements.
net-m privatbank 1891 AG is bound to the proscription of the German Banking Act and the rules on large exposures accor-ding to CRR article 395, by which banks are forbidden to grant more than 25% of their own funds as a loan to a company.
* One share with a nominal value of ! 10 is held by former Executive Board member Edgar Schnorpfeil for technical reasons. Minority interests have not been reported in the consolidated financial statements on account of immateriality.
** Prior to profit transfer. *** Indirect shareholding.
PREPARATION OF THE HALF YEAR REPORT FIGURES
The information about the first six months of the 2015 finan-cial year has been prepared by the Executive Board of net mobile AG. The half-year financial statement have not been reviewed or certified by an auditor. All figures should be read
in conjunction with the consolidated annual report for the year ended 31st of December 2014 and the corresponding no-tes. The income statement has been prepared in accordance with the cost of sales method.
Trade receivables are required to be classified as loans and receivables in accordance with IAS 39 and are carried at amortised cost using the effective interest method. By
indica-tions of impairment, individual value adjustments are made. Due to the short maturity, the carrying amounts are conside-red to be a reasonable estimate of fair value.
TRADE RECEIVABLES
ACCOUNTING POLICIES APPLIED IN PREPARING THE FINANCIAL STATEMENTS
The consolidated financial statements have been prepared in Euro or thousands of Euro (kEUR) in accordance with the provisions of the International Financial Reporting Standards
(IFRS). The accounting policies are unchanged since the an-nual financial statements of the 31st of December 2014.
INVESTMENTS
In the past three months, the investments in fixed assets (ex-cluding financial assets) amounted to kEUR 2,433. These are mainly as follows:
Intangible assets kEUR 2,215 Tangible assets kEUR 212 Assets under construction kEUR 6
Development costs of kEUR 1,826 are contained within the investment in intangible assets.
Other current assets mainly include other financial receivab-les from non-consolidated affiliated companies and third par-ties, receivables from banks with a maturity from over three
months and up to one year. These are classified as loans and receivables. Due to the short maturity, the carrying amounts are considered to be a reasonable estimate of fair value.
OTHER CURRENT ASSETS
Cash and cash equivalents comprise of bank account deposits cost. Accounts denominated in foreign currency are valued
ASSETS HELD FOR SALE
Assets held for sale contains the disposal group „Bank/PSP“ and the assets allocated to this group. They are measured at fair value inasmuch that IFRS 5 is applicable.
EQUITY
In the period to be reviewed, the equity of the company has through the positive result grown by kEUR 2,450 and amounts to kEUR 7,503 at the reporting date. The equity ratio increa-sed, mainly through the profits from the half year, from 2.3%
to 3.6 %. Please see the consolidated financial statements per 31st December 2014 for further information to equity and equity ratio. Authorised capital and contingent capital repor-ted in the Annual Report remain unchanged.
NON-CURRENT LIABILITIES
The non-current financial liabilities include only those parts of liabilities which are not to be repaid within twelve months. This liabilities primarily relate to affiliated companies (kEUR 27,000, previous year: kEUR 0).
CURRENT LIABILITIES
Current provisions include current external obligations caused by past events if a future outflow of resources is likely and the amount of the obligation can be reliably estimated. They are recognised in the amount of the best estimate. This is the amount that an entity would rationally pay to settle the obligation at the end of the reporting period or to transfer it to a third party at that time.
In line with IAS 39, trade payables and advance payments received are measured at fair value or cost as they arise and subsequently using the effective interest method at amor-tised cost. Accruals are also reported in this item and measu-red in line with trade payables. Due to the short maturity, the carrying amounts are considered to be a reasonable estimate of fair value.
The measurement of current liabilities and other financial liabilities is in line with IAS 39. These liabilities are recog-nised at fair value as they arise and subsequently using the effective interest method at amortised cost.
Other current liabilities primarily relate to liabilities to affi-liated companies (kEUR 15,218 previous year: kEUR 36,608) and to credit institutions (kEUR 4,011, previous year kEUR 11,246). Tax liabilities are included in the accruals under other financial liabilities and relate mainly to other taxes.
Liabilities held for sale contains debts allocated to the dis-posal group „Bank/PSP“.
TREASURY SHARES AS OF THE 30TH OF
JUNE 2015
At the beginning of the fiscal year 2014 and for the internal control of the Group, the management board settled on the following three performance indicators: turnover, Industri-al Added VIndustri-alue (IAV = SIndustri-ales minus directly attributable cost of sales) and 2nd Contribution Margin (2nd CM = IAV minus personnel costs + bonus expenses minus other operating ex-penses + management fees + restructuring costs + value ad-justments + other company income minus other taxes). Consolidated sales for the first six months dropped by kEUR 7,181 to kEUR 65,217 (Q1 - Q2 2014: kEUR 72,398 TEUR). This corresponds to a reduction of approximately 9.9%. The gross margin continued to show a positive trend and increased from 22.1% to 25.8%. The IAV (Industrial Added Value) incre-ased from kEUR 13,493 to kEUR 15,783 (kEUR +2,290) as per expectations. The 2nd Contribution Margin increased by 151% to kEUR 6,569 (Q1 - Q2 2014: kEUR 2,613).
The development at the level of the segments is as follows: The segment “Payment Solutions” sales reduced by kEUR 4,577 to kEUR 46,988 (Q1 - Q2 2014: kEUR 51,565) in the first half of 2015 with an IAV of kEUR 11,121 (Q1 – Q2 2014: kEUR 8,233). The main reason for the reduction in sales were new regulations in the market for mobile payment business. The segment “B2O & Media” achieved sales of kEUR 3,729 which is kEUR 930, about 20.0%, lower than previous year (Q1 - Q2 2014: kEUR 4,659). The drop in sales resulted from declining business activity in low margin legacy product lines in this segment. The IAV only dropped by 4.3% to kEUR 2,343 (Q1 - Q2 2014: kEUR 2,449).
The segment „Voice Solutions“ increased its sales by kEUR 639 to kEUR 10,114 (Q1 - Q2 2014: kEUR 9,475). This represents an increase of around 6.7%, which resulted primarily from the acquisition of new key accounts following a reorganizati-on in sales. IAV was kEUR 835 up reorganizati-only 1.9% reorganizati-on the previous year (Q1 - Q2 2014: kEUR 851).
The segment „B2C“ sales were kEUR 4,386, a drop of kEUR 2,313 compare to previous year‘s sales (Q1 - Q2 2014: kEUR 6,699). The IAV also dropped by 24.3% to kEUR 1,484 compa-red to the previous year (Q1 - Q2 2014: kEUR 1,960). The main reason for the drop in sales was the loss of a major client in the Spanish market.
Altogether, as mentioned above, the 2nd Contribution Margin was kEUR 6,569 (Q1 - Q2 2014: kEUR 2,613). This breaks down as follows:
SALES DEVELOPMENT
ASSETS, LIABILITIES, FINANCIAL POSITION PER 30TH JUNE, 2015
Compared to 31st December 2014, the equity of the company has increased by kEUR 2,450 and per reporting date amounts to kEUR 7,503. The equity ratio increased, mainly through the profits from the first half year, from 2.3% to 3.6%. The non-current financial liabilities consist basicly of a long-term loan of EUR 27 million from NTT DOCOMO Inc.. In the first half year of 2015, the group could significantly reduce the debt owed to banks. The main reason for this was the improved cash
ma-nagement of the net mobile group and the subsequent reduc-tion on trade receivables and also the entry admission into the Global Cash Management System of NTT DOCOMO Group. Cash and cash equivalents of the company (excluding the business area of „Bank/PSP“) at the reporting date amount to kEUR 1,241 (previous year kEUR 401) and current liabilities to credit institutes to kEUR 4,011 (previous year kEUR 11,246).
kEUR
Payment Solutions 9,401
B20 & Media 618
B2C 904
Voice Solutions 322
General Business Units -4,676
PERSONNEL COSTS
Personnel costs sank to kEUR 6,859 (Q1 - Q2 2014: kEUR 7,770). In parallel, the in-house development capacity decli-ned from kEUR 2,550 last year to kEUR 1,826.
AMORTIZATION AND DEPRECIATION
The volume of amortization and depreciation in the second quarter 2015 amounted to kEUR 5,132 (Q1 - Q2 2014: kEUR 5,198), a decrease of kEUR 66.
EARNINGS PERFORMANCE
The result before interest and taxes (EBIT) is, in the first six months of the current fiscal year, at kEUR 2,788, kEUR 2,823 better than in the comparison period (Q1 - Q2 2014: kEUR -35).
The realignment and the restructuring thus show the desired results.
FINANCIAL RESULTS
The financial results in the first six months deteriorated by kEUR -150 to kEUR -463 (Q1 – Q2 2014: kEUR -313) compared with the comparison period. The main contributor to this was currency exchange losses amounting to kEUR -309 (Q1 - Q2
2014: kEUR -155), which mainly resulted from the decision of the Swiss National Bank to repeal the minimum exchange rate between the euro and the Swiss franc.
TAX RESULTS
The tax charge for the first six months amounts to kEUR -346 (Q1 - Q2 2014: kEUR 221), mainly resulting from changes in deferred taxes.
RESULTS FROM DISCONTINUED OPERATIONS,
NET OF TAX
The result from discontinued operations in the first half year of 2015 amounted to kEUR -294 (Q1 - Q2 2014: kEUR - 577).
