NFON AG benefits from increasing digitalization of business communication

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.