ecotel communication ag, a leading quality provider for business customers in Germany, reported a stable business development for the first half of 2026, with significant improvements in revenue, earnings, and cash flow. The company's group revenue increased by 14.7% to EUR 65.4 million, compared to EUR 57.0 million in the prior-year period. This growth was primarily driven by the ecotel Wholesale segment, which saw revenue rise to EUR 40.7 million from EUR 32.1 million, largely due to the Voice business and a positive contribution from the Data business. The Business Customer segment remained stable, generating revenue of EUR 24.7 million.
The company's profitability also improved. Gross profit increased to EUR 18.7 million from EUR 17.8 million, while EBITDA rose to EUR 3.7 million (up from EUR 3.2 million) and EBIT climbed to EUR 1.5 million (up from EUR 0.9 million). Net income for the period was EUR 0.9 million, compared to EUR 0.7 million in the prior year, with earnings per share (EPS) increasing to EUR 0.25 from EUR 0.20.
Cash flow performance was notably positive. Cash flow from operating activities reached EUR 2.8 million, a substantial improvement from a cash outflow of EUR 0.6 million in the first half of 2025. Free cash flow also turned positive, reaching EUR 0.9 million, compared to a negative EUR 2.8 million in the prior-year period. As of June 30, 2026, the group reported cash and cash equivalents of EUR 1.4 million, and net financial assets improved by EUR 3.5 million year-on-year to EUR 1.4 million.
Looking ahead, ecotel announced that in August 2026 it 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 in the second half of the year, but the company asserts it continues to have a solid financial and liquidity position.
Based on the first-half performance, ecotel confirms its expectations for fiscal year 2026, with revenue expected to be within the 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 underscore ecotel's resilience in a competitive telecommunications market, with its focus on cloud and fiber services for business customers. The company's ability to increase revenue and profitability while improving cash flow highlights its operational efficiency and strategic direction. For investors and industry observers, the positive financial metrics signal continued stability and potential for future growth, despite the anticipated VAT payment.
