7 Forecast
At the start of the new 2006/2007 financial year, the general data for SinnerSchrader’s business development continues to be positive. The importance of the Internet for shaping relations between companies and customers will continue to increase. The triumphal progress of search engine marketing, which started in 2005, and the current trend towards greater interaction among and with users/customers of Internet systems, linked to the buzzword “Web 2.0”, document the dynamism with which Internet business is developing. According to the annual Technology Fast 500 survey conducted by Deloitte, in 2006 American CEOs continued to believe that the “Internet/IP” industry segment would be the segment with the strongest growth in the three years ahead. With an overall positive expectation of economic development in Germany, for which the burden caused by the imminent rise in VAT seems to be growing less important, SinnerSchrader is expecting double-digit growth rates in the market for interactive services in Germany.
Due to the positive overall environment, its market position as one of the five biggest
Internet service providers in Germany and the current orders on hand, SinnerSchrader expects organic revenue growth of 15 % to over € 18 million in the 2006/2007 financial year.
Now that the last legacy of the boom phase of 1999/2000 has been removed following the move into new office space in Hamburg in July 2006, in the 2006/2007 financial year SinnerSchrader will come much closer to its medium-term goal of an operating margin of between 10 % and 12 %. According to the current forecast, the operating result (EBITA) will double over that achieved in the 2005/2006 financial year and will be on the order of
€ 1.2 million.
All business segments will contribute to the planned rise in revenue and income. After strong growth rates in the Interactive Services segment in the 2004/2005 and 2005/2006 financial years, the dynamism in the Interactive Software and Interactive Marketing segments should increase in 2006/2007.
Since the advantages of offsetting losses against tax already had to be taken into account in the 2005/2006 statement of operations, the operating development will only be reflected in the net income to a limited extent.
For 2007/2008 SinnerSchrader expects to be able to continue with double-digit growth and to increase the EBITA disproportionately.
Furthermore, it remains the goal of SinnerSchrader to expand its service portfolio by means of acquisitions and to develop further potential for growth and results.
Hamburg, October 2006
The Management Board
Matthias Schrader Thomas Dyckhoff
