NFON A G I Q U A R T E R LY S TAT E M E N T F O R Q 1 / 2 0 2 4
Transformation. Integration. Implementation.
NFON AG
Quarterly statement for Q1/2024
NFON AG QUARTERLY STATEMENT FOR Q1/2024 | 2 | |
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Who we are
Headquartered in Munich, NFON AG is a leading European provider of integrated cloud business communications. The listed company (Frankfurt Stock Exchange, Prime Standard) with more than 3,000 partners in 18 European countries and eight branches counts more than 55,000 companies among its customers.
The NFON portfolio comprises four areas: Business Communications, Integration, Customer Contact and Enablement. With its core product, Cloudya, the smart cloud communications platform, NFON offers hassle-free voice calls, simple video conferencing and seamless integration of CRM and collaboration tools for small and medium-sized companies.
All of NFON's cloud services are operated in certified data centres in Germany, with 100% of their energy needs covered by renewable sources. NFON escorts companies into the future of business communication by offering intuitive communication solutions.
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Quick links
02 Interim Group management report
03 Interim consolidated financial statements
04 Additional information
04 Additional information | NFON AG QUARTERLY STATEMENT FOR Q1/2024 | 3 | ||||
Key figures Q1/2024
In EUR million | 3M 2024 | 3M 2023 | Change | |||
Total revenue | 21.2 | 20.8 | 2.2% | |||
Recurring revenue | 19.9 | 19.3 | 2.8% | |||
Share of recurring revenue | 93.6% | 93.1% | - | |||
Non-recurring revenue | 1.4 | 1.4 | -6.1% | |||
Share of non-recurring revenue | 6.4% | 6.9% | - | |||
Blended ARPU (in EUR) | 9.82 | 9.80 | 0.2% | |||
Number of seats (total) | 658,544 | 645,582 | 2.0% | |||
Adjusted EBITDA* | 2.8 | 2,0 | 40.0% | |||
* Reconciliation of EBITDA to adjusted EBITDA see section "EBITDA, EBIT, net income".
This is where we are
Every day, we provide companies in Europe with intuitive communication solutions to improve their business operations.
The Group operates as a telecommunications company in 18 European countries and is represented by its own companies in Germany, Austria, the UK, Spain, Italy, France, Poland and Portugal.
NFON activities with a local presence
NFON activities without a local presence
02Interim Group management report03 Interim consolidated financial statements | 04 Additional information | NFON AG QUARTERLY STATEMENT FOR Q1/2024 | 4 | |||
Interim Group management report
Additional information can be found in
the Annual Report 2023.
Revenue performance
Overall, revenue followed a positive year-on-year trend as a result of the increase in recurring revenue. NFON succeeded in increasing revenue in the first three months of 2024 by acquiring new customers, activating additional seats within the existing customer base and offering expanded products (premium solutions) to both new and existing customers.
Development of key items of the consolidated statement of comprehensive income
In EUR million | 3M 2024 | 3M 2023 | Change | |||
Revenue | 21.2 | 20.8 | 2.2% | |||
Cost of materials | 3.4 | 3.4 | 0.5% | |||
Gross profit | 17.9 | 17.4 | 2.5% | |||
Other operating income | 0.2 | 0.2 | 0.0% | |||
Staff costs | 8.6 | 8.8 | -2.5% | |||
Other operating expenses | 6.7 | 6.9 | -2.4% | |||
EBITDA | 2.7 | 1.9 | - | |||
Adjusted EBITDA* | 2.8 | 2.0 | - | |||
Depreciation, amortisation and | ||||||
write-downs | 2.0 | 1.7 | 13.3% | |||
EBIT | 0.7 | 0.1 | - | |||
Net interest expense | 0.0 | 0.1 | -100.0% | |||
Net tax expense | 0.2 | 0.1 | -100.0% | |||
Consolidated result | 0.5 | 0.0 | - | |||
* Reconciliation of EBITDA to adjusted EBITDA see section "EBITDA, EBIT, net income".
NFON distinguishes between recurring and non-recurring revenue. Recurring revenue essentially comprises monthly payments of a fixed licence fee per seat plus a fixed or volume-based fee for usage of voice minutes per seat or SIP trunk. Non-recurring revenue includes revenue from sales of devices (tele- phones, soft clients for PCs and smartphones) and the one-time activation fee per seat when it is first connected.
The cumulative effect typical for revenue performance, in relation to seats still to be gained over the year, is evident from the trend in the recurring revenue generated in the individual quarters. Recurring revenue increased by 2.8% year on year in the first quarter of 2024.
Accounting for 93.6% of total revenue (previous year: 93.1%), the share of recurring revenue is within the range of the forecast published for 2024 as a whole (minimum of 90%).
02Interim Group management report03 Interim consolidated financial statements | 04 Additional information | NFON AG QUARTERLY STATEMENT FOR Q1/2024 | 5 | |||
High share of recurring revenues
Development of average revenue per user
3M | 19.9 | ||||||
2024 | |||||||
3M | 19.3 | ||||||
2023 | |||||||
0 | 5 | 10 | 15 | 20 |
+2.8%
25
NFON uses the average recurring revenue across all services, sales channels and countries per user or seat, referred to as blended average revenue per user (ARPU), to measure operating performance per seat. The average voice minutes sold per seat have a significant influence on blended ARPU. These have fallen slightly compared to the years during the Covid-19 pandemic. Voice minutes also trended slightly downwards year on year in the first quarter of 2024. Thanks to measures such as price increases, blended ARPU remained stable despite the effect of the trend in voice minutes. To further stabilise blended ARPU, we announced price increases for selected products and customer cohorts in the first quarter of 2024 that will come into effect from the second
Recurring revenues in EUR million
Seat development
Seat development is positive, underlining the high level of satisfaction among NFON's customers. The consistently low churn rate of around 0.5% per month reflects the quality of the products and services and guarantees continuous recurring income.
Growth in total seat numbers
31.03. | 658,544 | |||||||
2024 | ||||||||
+2.0% | ||||||||
31.03. | 645,582 | |||||||
2023 | ||||||||
500,000 | 600,000 | 700,000 | ||||||
Seats | ||||||||
quarter onwards. We are generating additional ARPU contributions through the increase in sales of premium solutions.
Stable blended ARPU
3M | 9.82 | ||
2024 | |||
3M | 9.80 | ||
2023 | |||
3M | 9.98 | ||
2022 | |||
3M | 10.19 | ||
2021 | |||
0 | 5 | 10 |
Blended ARPU (in EUR)
02Interim Group management report03 Interim consolidated financial statements | 04 Additional information | NFON AG QUARTERLY STATEMENT FOR Q1/2024 | 6 | |||
Cost of materials
The cost of materials in the reporting period remained at the same level as in the comparable period of the previous year. As a result of the year-on-year increase in revenue in the first quarter of 2024, the cost of materials ratio fell slightly, to 15.92% (previous year: 16.19%). The change here is within the regular range of fluctuation. The positive performance is the result, on the one hand, of economies of scale that are realised and, on the other, the increase in the share of recurring revenue, which generates a significantly higher margin than the non-recurring revenue.
Staff costs
Staff costs fell by EUR 0.2 million year on year in the first quarter of 2024. The average number of employees (individuals) fell year on year to 419 in the reporting period (previous year: 481.7). If necessary, staff costs are adjusted for non-recurring effects. EUR 0.1 million had to be adjusted in the reporting period for expenses arising from the stock option programme and the merger. Staff costs were adjusted by EUR 0.1 million in the previous year on account of the focus on our core sales markets.
Other operating expenses
Other operating expenses were slightly down in the reporting period from the previous year's level. The decline in other operating expenses in the first quarter of 2024 compared with the first quarter of 2023 is partly the result of lower consulting expenses. In 2023, for example, costs of EUR 0.2 million were incurred for a one-off enforcement consultation. Overall, the cost-to-income ratio of the adjusted other operating expenses (measured by revenue) decreased from 33.1% in the first quarter of 2023 to 31.3% in the first quarter of 2024.
At 13.7%, selling expenses as a percentage of revenue were lower in the 2024 quarterly reporting period than the ratio of 14.2% in the same period in the previous year. Despite the increase in revenue, the costs for the selling expenses remained at the same level as the previous year as a result of this reduction.
EBITDA, EBIT, consolidated profit/loss
Increases in revenue and lower costs in the areas of staff and operating expenses (OpEx) are leading, in the first quarter of 2024, to an EUR 0.8 million year-on-year improvement in EBITDA.
EBITDA, adjusted EBITDA, EBIT, consolidated result
In EUR million | 3M 2024 | 3M 2023 | ||
EBITDA | 2.7 | 1.9 | ||
Staff costs | ||||
Focus on core markets | 0.0 | 0.1 | ||
Stock options | 0.1 | 0.0 | ||
Total non-recurring effects | 0.1 | 0.1 | ||
Adjusted EBITDA | 2.8 | 2.0 | ||
EBIT | 0.7 | 0.1 | ||
Consolidated result | 0.5 | 0.0 | ||
Adjusted consolidated result | 0.6 | 0.2 | ||
Financial position
At EUR 0.9 million, operating cash flow was down in the first quarter of 2024 from the same period in the previous year (EUR 1.6 million). Although earnings after tax improved from EUR 0.0 million to EUR 0.5 million, the decline in trade payables and the other provisions as well as tax payments nevertheless had a negative impact on the cash and cash equivalents. In the cash flow from investing activities, reduced investments in customising and a decrease in capitalised development costs resulted in lower cash outflows totalling EUR 0.7 million (previous year: EUR 1.8 million).
The capitalised development costs relate to new products and new features in existing products.
Overall, cash and cash equivalents experienced a slight reduction, from EUR 12.3 million to EUR 12.1 million.
02Interim Group management report03 Interim consolidated financial statements | 04 Additional information | ||
Supplementary report
No matters have arisen after 31 March 2024 that could have a material impact on the assets and liabilities, financial position and results of operations.
Forecast
Outlook 2024
NFON AG QUARTERLY STATEMENT FOR Q1/2024 | 7 | |
Forward-looking statements and forecasts
This quarterly statement contains forward-looking statements that are based on the current expectations, assumptions and forecasts of the Management Board of NFON AG and the information that is available to it at present.
The forward-looking statements are subject to a variety of risks and uncertainties and are based on expectations, assumptions and forecasts that might turn out to be incorrect in the future.
Growth rate recurring revenues
Share of recurring revenue
Adjusted EBITDA
In the mid to upper single-digit percentage range
At least 90%
EUR 10-12 million
NFON AG offers no guarantee that the forward-looking statements will prove to be correct and is under no obligation and also does not intend to adjust or update the forward-looking statements made in this quarterly statement. Additional information on the forward-looking statements can also be found in the
Additional information can be found in
the Annual Report 2023.
NFON confirms the growth targets forecast as part of the 2023 consolidated financial statements. The planning is based on the information available as at 22 May 2023 and takes the opportunities and risks of the NFON Group as presented into account. Please refer in this context to the comments in the report on risks and opportunities in theAnnual Report as at 31 December 2023. These applied unchanged as at 31 March 2024.
section "About this report" in theAnnual Report 2023.
03 Interim consolidated financial statements 04 Additional information | NFON AG QUARTERLY STATEMENT FOR Q1/2024 | 8 | ||||
Interim consolidated financial statements
Consolidated statement of financial position
as at 31 March 2024
In EUR thousand | 31.03.2024 | 31.12.2023 | ||
Non-current assets | ||||
Property, plant and equipment | 11,101 | 11,630 | ||
Intangible assets | 34,707 | 35,433 | ||
Investments in associates | 680 | 680 | ||
Deferred tax assets | 826 | 823 | ||
Other non-current,non-financial assets | 686 | 691 | ||
Total non-current assets | 48,000 | 49,257 | ||
Current assets | ||||
Inventories | 140 | 114 | ||
Trade receivables | 9,886 | 8,966 | ||
Current other financial assets | 725 | 725 | ||
Current other non-financial assets | 2,836 | 2,564 | ||
Cash and cash equivalents | 12,111 | 12,281 | ||
Total current assets | 25,698 | 24,650 | ||
Total assets | 73,698 | 73,907 | ||
In EUR thousand | 31.03.2024 | 31.12.2023 | ||
Equity | ||||
Issued capital | 16,561 | 16,561 | ||
Capital reserves | 109,203 | 109,153 | ||
Loss carryforward | -78,664 | -79,206 | ||
Currency translation reserve | 754 | 647 | ||
Total equity | 47,854 | 47,155 | ||
Non-current liabilities | ||||
Non-current financial liabilities | 8,177 | 8,483 | ||
Other non-current,non-financial liabilities | 448 | 563 | ||
Deferred tax liabilities | 2,176 | 2,176 | ||
Total non-current liabilities | 10,801 | 11,222 | ||
Current liabilities | ||||
Trade payables | 4,802 | 4,963 | ||
Current provisions | 2,814 | 3,118 | ||
Current income tax liabilities | 511 | 812 | ||
Current financial liabilities | 1,551 | 1,418 | ||
Current other non-financial liabilities | 5,365 | 5,219 | ||
Total current liabilities | 15,043 | 15,530 | ||
Total equity and liabilities | 73,698 | 73,907 | ||
03 Interim consolidated financial statements 04 Additional information | NFON AG QUARTERLY STATEMENT FOR Q1/2024 | 9 | ||||
Consolidated statement of income and consolidated statement of comprehensive income
for the period from 1 January to 31 March 2024
In EUR thousand | 3M 2024 | 3M 2023 | In EUR thousand | 3M 2024 | 3M 2023 | |||||
Revenue | 21,245 | 20,786 | Attributable to: | |||||||
Other operating income | 215 | 172 | Shareholders of the parent company | 542 | 28 | |||||
Cost of materials | -3,382 | -3,366 | Non-controlling interests | 0 | 0 | |||||
Staff costs | -8,601 | -8,824 | Other comprehensive income (will be reclassified to profit or loss) | 107 | 47 | |||||
Depreciation, amortisation and impairments | -1,980 | -1,748 | Taxes on other comprehensive income (will be reclassified to profit or | |||||||
loss) | 0 | 0 | ||||||||
Other operating expenses | -6,724 | -6,890 | ||||||||
Other comprehensive income after taxes | 107 | 47 | ||||||||
Impairment losses on trade and other receivables | 19 | -23 | ||||||||
Total comprehensive income | 649 | 75 | ||||||||
Other tax expense | -42 | -3 | ||||||||
Attributable to: | ||||||||||
Income from continuing operations before net interest | ||||||||||
income and income taxes | 750 | 104 | Shareholders of the parent company | 649 | 75 | |||||
Interest and similar income | 70 | 6 | Non-controlling interests | 0 | 0 | |||||
Interest and similar expenses | -110 | -58 | Net earnings per share, basic (in EUR) | 0.03 | 0.00 | |||||
Net interest income | -40 | -52 | Net earnings per share, diluted (in EUR) | 0.03 | 0.00 | |||||
Earnings before income taxes | 710 | 53 | ||||||||
Income taxes | -175 | -24 | ||||||||
Deferred tax income (py: tax expenses) | 7 | 0 | ||||||||
Consolidated result | 542 | 28 | ||||||||
03 Interim consolidated financial statements 04 Additional information | NFON AG QUARTERLY STATEMENT FOR Q1/2024 | 10 | ||||
Consolidated statement of cash flow
for the period from 1 January to 31 March 2024
In EUR thousand | 3M 2024 | 3M 2023 | In EUR thousand | 3M 2024 | 3M 2023 | |||||
1. Cash flow from operating activities | 2. Cash flow from investing activities | |||||||||
Profit/loss after taxes | 542 | 28 | Proceeds from the disposal of property, plant and equipment and | |||||||
intangible assets | 6 | 0 | ||||||||
Adjustments to reconcile profit (loss) to cash provided | ||||||||||
Payments for investments in property, plant and equipment | -173 | -111 | ||||||||
Income taxes | 169 | 24 | ||||||||
Payments for investments in intangible assets | -532 | -1,710 | ||||||||
Interest income (interest expenses), net | 40 | 52 | ||||||||
Cash flow from investing activities | -698 | -1,821 | ||||||||
Amortisation of intangible assets and depreciation of property, | ||||||||||
3. Cash flow from financing activities | ||||||||||
plant and equipment | 1,980 | 1,748 | ||||||||
Impairment losses on trade and other receivables | -19 | 23 | Proceeds from capital increases | 0 | 0 | |||||
Equity-settledshare-based payment transactions | 50 | 6 | Payments in connection with leases | -363 | -491 | |||||
Other non-cash income and expenses | 52 | 14 | Other proceeds/payments | 0 | -1 | |||||
Changes in: | Cash flow from financing activities | -363 | -492 | |||||||
Inventories | -26 | -20 | Change in cash and cash equivalents | -188 | -768 | |||||
Trade and other receivables | -1,154 | -1,116 | Effects of changes in exchange rates on cash held | 18 | 7 | |||||
Trade payables and other liabilities | -130 | 625 | Cash and cash equivalents at the beginning of the period | 12,281 | 13,218 | |||||
Provisions and employee benefits | -304 | 154 | Cash and cash equivalents at the end of the period | 12,111 | 12,457 | |||||
Interest paid | -9 | -14 | ||||||||
Income taxes received/paid, net | -425 | -26 | ||||||||
Effects of changes in foreign exchange rates | 107 | 47 | ||||||||
Cash flow from operating activities | 873 | 1,546 | ||||||||
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NFON AG published this content on 22 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 May 2024 08:02:09 UTC.