1&1 AG — Earnings Release 2015

Jul 31, 2015

News Details

Ad-hoc | 31 July 2015 15:30

Drillisch AG – Preliminary Figures from a Successful First Half of 2015, Start of Operations as an MBA MVNO, EBITDA Forecast for 2016 of EUR115m to EUR120m

Drillisch AG / Key word(s): Preliminary Results/Forecast

31.07.2015 15:30

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Drillisch AG - Preliminary Figures from a Successful First Half of 2015,
Start of Operations as an MBA MVNO, EBITDA Forecast for 2016 of EUR115m to
EUR120m

• Revenues +78.9% to EUR253.6 million (HY1 2014: EUR141.8m)

• Service revenue +43.5% to EUR200.3 million (HY1 2014: EUR139.6m)

• Gross profit +51.7% to EUR103.2 million (HY1 2014: EUR68.0m)

• Adjusted EBITDA +30.1% to EUR55.1 million (HY1 2014: EUR42.4m)

• MVNO subscribers +28.2% to 2.327 million (HY1 2014: 1.815 million)

• Of which budget subscribers +59.2% to 1.629 million (HY1 2014: 1.023)

• Average gross profit per MVNO user (AGPPU) +13.5% to EUR7.30 (HY1 2014:
  EUR6.43)

Maintal, 31 July 2015 - Drillisch AG (ISIN DE 0005545503) has closed out
the first half of 2015 with excellent results and once again increased the
major performance indicators in comparison with the same period of the
previous year.

Significant improvement in profit as revenues rise:
Total revenues rose by EUR111.8 million to EUR253.6 million (HY1 2014:
EUR141.8m). While growth in the first quarter was essentially due to the
increase in the number of subscribers, the brokerage and hardware revenues
from The Phone House Deutschland Group acquired at the beginning of May
2015 made a further positive contribution during the second quarter,
especially in the Other revenues (increase by EUR51.1 million to EUR53.3
million (HY1 2014: EUR2.2m). Service revenues also rose very clearly in
comparison with the same period last year, an increase by EUR60.7 million
to EUR200.3 million (HY1 2014: EUR139.6m). In Q2 2015 alone, there was an
increase over Q1 of EUR9.4 million to EUR104.8 million (Q1 2015: EUR95.4m).
Gross profit in the first half of the year increased by EUR35.1 million
(51.7%) to EUR103.2 million (HY1 2014: EUR68.0m).

Despite the continued high level of advertising expenditures (significantly
higher than the expenditures in the same period of the previous year) of
EUR25.4 million (HY1 2014: EUR4.7m), the operating consolidated EBITDA (one
of the most important performance indicators for our business), adjusted
for the ancillary costs related to the company acquisitions of the year,
improved by EUR12.8 million (30.1%) to EUR55.1 million (HY1 2014:
EUR42.4m). The adjusted EBITDA margin came to 21.7% (HY1 2014: 29.9%).

Development of subscriber base continues to be positive:
As of the end of the first half of 2015, the MVNO subscriber base had grown
by 512,000 subscribers (28.2%) over HY1 2014 to 2.327 million (HY1 2014:
1.815 million). While the number of volume subscribers declined by 94,000
to 698,000 (HY1 2014: 792,000), the figure for the significantly more
profitable budget subscribers rose by 606,000 (59.2%) to 1.629 million (HY1
2014: 1.023 million). These figures represent yet another increase in the
positive development of the customer mix of recent quarters. In Q2 alone,
organic growth of 132,000 budget subscribers was achieved. The total
subscriber base per 30 June 2015 had risen by 472,000 subscribers (23.9%)
to 2.449 million (HY1 2014: 1.977 million).

Start of operations as an MBA MVNO and takeover of Telefónica shops:
The technical realization (i.e. the operational startup of Drillisch as
an MBA MVNO in the Telefónica network) took place as scheduled on 1 July
2015. Among other advantages, Drillisch now has unrestricted access to 4G
as well as to any and all more sophisticated technologies that are
developed in the future and can perform the same role in the design and
marketing of its products as a network operator. In addition, the
previously announced acquisition of about 300 shop locations previously
belonging to O2 and BASE was completed per 29 June 2015. About 100 own
yourfone shops had been opened out of this number earlier in July. The
integration and conversion of the remaining locations will follow
successively.

Outlook:
In view of the outstanding market position of an MBA MVNO and the excellent
development of operating business in the first half of the year, the
Management Board is looking ahead to the future with confidence and is
counting on a continued rise in the MVNO customer base and the related
ongoing positive earnings development in operating business for 2015 and
2016. The adjusted EBITDA for 2015 is expected to reach the upper part of
the previously forecast range of between EUR95 million and EUR100 million.
The Management Board expects a further increase in the adjusted EBITDA to
between EUR115 million and EUR120 million for fiscal year 2016. In keeping
with our corporate policy and its aim of sustained business, we will strive
to pay a dividend in the minimum amount of EUR1.70 per voting share in the
coming fiscal years.

Preliminary and unaudited performance indicators of Drillisch Group as a
comparison of HY1 2015 v. HY1 2014 (IFRS)

In EURm HY1 2015 HY1 2014 Change in
%
Revenue 253.6 141.8 +78.9%
Service revenue 200.3 139.6 +43.5%
Gross profit 103.2 68.0 51.7%
Gross profit margin in % 40.7% 48.0%
AGPPU average gross profit per user (MVNO) EUR7.30 EUR6.43 +13.5%
blended
EBITDA 53.3 42.4 +25.8%
EBITDA (adjusted)* 55.1 42.4 +30.1%
EBITDA margin in % 21.0% 29.9%
EBITDA margin in % (adjusted) 21.7% 29.9%

Wireless service subscribers (thousands) 2,449 1,977 +23.9%
Thereof MVNO subscribers 2,327 1,815 +28.2%
Thereof budget subscribers 1,629 1,023 +59.2%
Thereof volume subscribers 698 792 -11.9%

* = adjusted for the ancillary costs related to the company acquisitions of
the year

Preliminary and unaudited performance indicators of Drillisch Group as a
comparison of Q2 2015 v. Q2 2014 (IFRS)

In EURm Q2 2015 Q2 2014 Change Q1 2015
in %
Revenue 154.4 70.4 +119.2% 99.2
Service revenue 104.8 69.5 +50.8% 95.4
Gross profit 55.4 35.1 +57.8% 47.8
Gross profit margin in % 35.9% 49.8% 48.2%
AGPPU average gross profit per user EUR7.38 EUR6.49 +13.7% EUR7.23
(MVNO) blended
EBITDA 26.4 21.8 +20.8% 26.9
EBITDA (adjusted)* 28.2 21.8 +29.1% 26.9
EBITDA margin in % 17.1% 31.0% 27.1%
EBITDA margin in % (adjusted) 18.3% 31.0% 27.1%

* = adjusted for the ancillary costs related to the company acquisitions of
the year

The final quarterly report will become retrievable on the Company's home
page on 13 August 2015.
http://www.drillisch.de/investor-relations/reports

Maintal, 31 July 2015

Drillisch AG
The Management Board

Disclaimer: This report contains statements regarding the future which are
based on the current assumptions and projections of the management of
Drillisch AG. Various risks, uncertainties and other factors, both known
and unknown, can cause actual developments, especially in the results,
financial position, and the business of our Company, to deviate
substantially from the projections about the future as they are shown
here. The Company does not undertake any obligation to update such
future-oriented statements and to adapt them to future events or
developments. All of the above information is based on provisional
calculations prior to the final consolidation and the conclusion of the
audit. It is consequently possible that the final business figures
presented on 13 August 2015 will differ from those shown here.

Contact:

Oliver Keil
Head of Investor Relations
Mail: ir@drillisch.de

31.07.2015 The DGAP Distribution Services include Regulatory Announcements,
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Language: English
Company: Drillisch AG
Wilhelm-Röntgen-Straße 1-5
63477 Maintal
Germany
Phone: +49 (0)6181 412 218
Fax: +49 (0)6181 412 183
E-mail: ir@drillisch.de
Internet: www.drillisch.de
ISIN: DE0005545503
WKN: 554550
Indices: TecDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart

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