DGAP-News: asknet AG

DGAP-News: asknet reports much higher margin for FY 2015

DGAP-News: asknet AG / Key word(s): Final Results asknet reports much higher margin for FY 2015

29.04.2016 / 10:00 The issuer is solely responsible for the content of this announcement.

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asknet reports much higher margin for FY 2015

- Gross profits at prior year level (10.39 million euros)

- Gross profit margin rises sharply to 14.2 percent (previous year: 11.9 percent)

- Positive earnings before taxes (EBT) of 0.09 million euros; 0.08 million euros after taxes

- Company in the midst of a comprehensive change process

- 2016 Group forecast: margin, earnings and EBT to improve moderately

- EBT to reach 10 percent of gross profit in the medium term

Karlsruhe, April 29, 2016 - asknet AG, a supplier of global e-commerce solutions, has published the figures for the financial year 2015. Gross profit, which is a key performance indicator of asknet Group, amounted to 10.39 million euros at Group level, and thus roughly on a par with the previous year (previous year: 10.64 million euros). Following an expectedly weaker first half-year, which saw gross profits at 4.8 million euros, the Group delivered the best six-month performance in five years with gross profits rising to 5.6 million euros. Moreover, the Group was able to increase its profitability significantly in the reporting period. With sales revenues down by 18 percent to 73.32 million euros (previous year: 89.38 million euros), the gross profit margin (gross profits as a percentage of sales revenues) rose sharply from 11.9 percent to 14.2 percent. Gross profits as a percentage of transaction revenues, which also dropped 18 percent to 83.20 million euros (previous year: 101.80 million euros), also increased strongly from 10.5 percent in 2014 to 12.5 percent in 2015.

The Group's Academics Business Unit showed a clearly positive trend in the reporting period, with gross profits rising by approx. 13 percent from 3.76 million euros to 4.27 million euros. This was mainly attributable to profitable individual transactions in Germany and Switzerland. In asknet's Digital Goods Business Unit, the discontinuation of less profitable projects in the course of 2014 had the expected effect on the result for the full year 2015; gross profits came in at 5.27 million euros. asknet's new Physical Goods Business Unit established a presence in the market, was able to win some new customers in the reporting period and has a good new customer pipeline. Gross profits in this segment totaled 0.90 million euros in 2015. Combined gross profits for the Digital and Physical Goods segments (formerly collectively eDistribution) were down by 11 percent on the previous year to 6.13 million euros. This decline had been incorporated into the company's budgets and is the necessary consequence of the stronger focus on profitable growth. The increased gross profit margin in 2015 vindicates this decision.

asknet Group's earnings before interest and taxes (EBIT) amounted to 0.09 million euros in 2015 (previous year: 0.11 million euros); earnings before taxes (EBT) also came in at 0.09 million euros. Earnings after taxes amounted to 0.08 million euros (previous year: 0.10 million euros). This means that asknet posted a moderately positive net income for the fourth consecutive financial year in spite of the comprehensive change process it is undergoing.

This change process entails a fundamental strategic realignment, which comprises a large number of measures and decisions. These include the modernization of the corporate structures, the expansion of the distribution activity and intensified internal and external communication. Moreover, the existing product portfolio was subjected to a thorough evaluation to identify new customer and product potential in 2015. Going forward, asknet will increasingly rely on USPs and support from partners and open its own platforms to third-party solutions. A focus will also be placed on the development of promising stand-alone products such as asknet Verify, which facilitates the automated verification of personal data such as the student status. In 2015, the Digital Goods Business Unit already won renowned new customers such as Kaspersky Lab, Verbi or Steinberg for this solution; sales activities for asknet Verify will be intensified further in the current financial year. The Academics Business Unit will primarily focus on its internationalization and the development of new products. This includes the launch of an Infrastructure as a Service (IaaS) solution and the expansion of Software Asset Management (SAM).

Says Tobias Kaulfuss, CEO of asknet AG: "We have modernized our strategy and our structures from scratch, while at the same time running our business solidly. The change process we have just initiated will be continued vigorously in 2016. asknet is well on track to leveraging new potential and tapping new customer segments with renewed pioneering spirit, new products and a new focus. This will gradually be reflected in improved profitability. In the medium to long term, we aim to generate earnings before taxes of approx. 10 percent of gross profits."

The Executive Board of asknet AG expects gross profits and the gross profit margin to increase and earnings before taxes (EBT) to improve moderately in the financial year 2016.





2015 2014

73.32 million 89.38 million Sales revenues euros euros

10.39 million 10.64 million Gross profits euros euros

Gross profit margin (gross profit in percent of sales revenues) 14.2 % 11.9 %

0.09 million 0.11 million EBT euros euros

0.08 million 0.10 million Result for the year euros euros



The full Annual Report for 2015 is available on the company's website at www.asknet.com.

About asknet AG

asknet, a pioneer in the development of global e-commerce solutions, offers extensive expertise and individual shop solutions to ensure worldwide electronic distribution of products of all kinds 24/7 in more than 190 countries. Customers benefit in selling digital and physical goods from both the possibility of handling a variety of international payment and logistics processes as well as the extensive experience of the company in the development and operation of successful e-commerce platforms.

Founded in 1995 as a spin-off of the Karlsruhe Institute of Technology (KIT) the company is also a partner of around 80 percent of German universities and research institutions. Here asknet offers as a large account reseller for manufacturers such as Adobe and Microsoft a comprehensive range of software licenses and services related to the procurement and distribution of software. In addition, asknet distributes via the established internet platform "studyhouse.de" a wide range of software to students. For more information, visit www.asknet.com.

Press Contact asknet AG Madeleine Clark +49 (0)721 96458-6116 investorrelations@asknet.com



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29.04.2016 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.

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