1&1 AG — Earnings Release 2015

May 12, 2015

News Details

Corporate | 12 May 2015 21:25

Drillisch AG posts substantial increase in profit and growth in subscriber base in Q1

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

2015-05-12 / 21:25

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Drillisch AG posts substantial increase in profit and growth in subscriber base in Q1

– Service revenues +36.3% to EUR95.4 million (Q1 2014: EUR70.0m)

– Gross profit +45.1% to EUR47.8 million (Q1 2014: EUR32.9m)

– EBITDA +31.2% to EUR26.9 million (Q1 2014: EUR20.5m)

– MVNO subscribers +26.6% to 2.229 million (Q1 2014: 1.760m)

– Of which budget subscribers +58.2% to 1.497 million (Q1 2014: 946,000)

– Average gross profit per MVNO user (AGPPU) +13.1% to EUR7.23 (Q1 2014: EUR6.39)

Maintal, 12 May 2015 – Drillisch AG (ISIN DE 0005545503) has posted an excellent start to the year 2015 and has once again increased its earning power in comparison with the same period of the previous year.

Development of subscriber base continues to be positive:

During Q1 2015, the MVNO subscriber base grew compared with Q1 2014 by 26.6% (469,000 subscribers) to 2.229 million (Q1 2014: 1.760 million). While the number of volume subscribers declined by 82,000 to 732,000 (Q1 2014: 814,000), the figure for the significantly more profitable budget subscribers rose by 58.2% (551,000) to 1.497 million (Q1 2014: 946,000). The positive development of the customer mix of recent quarters represents a continuation of that positive development. As per 31 March 2015, the total subscriber base grew by 22.0% (426,000 subscribers) to 2.361 million (Q1 2014: 1.935 million).

Significant improvement in profit as service revenue rises:

Including service revenue of EUR95.4 million (Q1 2014: EUR70.0m), gross profit increased by EUR14.9 million (45.1%) to EUR47.8 million (Q1 2014: EUR32.9m). The gross profit margin improved by 2.0% to 48.2% (Q1 2014: 46.2%). Despite the sharp rise in advertising expenditures to EUR12.4 million (Q1 2014: EUR2.0 million), the consolidated EBITDA, one of the most important performance indicators of the business, rose by EUR6.4 million (31.2%) to EUR26.9 million in comparison with the same period of the previous year (Q1 2014: EUR20.5 million). The EBITDA margin came to 27.1% (Q1 2014: 28.8%).

Excellent development of cash flow from current business activities:

Cash flow from current business activities grew substantially in comparison with the same quarter of the previous year by EUR7.8 million to EUR18.0 million (Q1 2014: EUR10.2m). Cash declined, essentially a consequence of the acquisition of yourfone to EUR266.3 million (31/12/2014: EUR317.1 million). Drillisch has adequate flexibility to expand or supplement its business activities as expedient, in combination with attractive financing opportunities.

Outlook:

Management is planning a further increase in of the MVNO customer base for 2015 and 2016 which will naturally lead to a continuation of the positive earnings development in operating business. We expect an EBITDA of between EUR95 million and EUR100 million for 2015. Supervisory Board and Management Board have submitted a dividend proposal for 2014 of EUR1.70 to the Annual General Meeting, which will take place on 21 May 2015. In keeping with our corporate policy and its aim of sustained business, we will strive to pay a dividend of the same amount as a minimum in the coming fiscal years.

Performance indicators in accordance with IFRS

In EURm	Q1 2015	Q1 2014	Change in %
Revenue	99.2	71.3	+39.1%
Service revenue	95.4	70.0	+36.3%
Gross profit	47.8	32.9	+45.1%
Gross profit margin in %	48.2%	46.2%
AGPPU average gross profit per user (MVNO) blended	EUR7.23	EUR6.39	+13.1%
EBITDA	26.9	20.5	+31.2%
EBITDA margin in %	27.1%	28.8%
Cash	266.3	196.5	+35.5%
Debenture bond	89.4	86.9
Financial liabilities	0.0	0.0
CF from current business activities	18.0	10.2	+75.7%
Subscribers, in millions	2.361	1.935	+22.0%
Thereof MVNO subscribers	2.229	1.760	+26.6%
Thereof budget subscribers	1.497	0.946	+58.2%
Thereof volume subscribers	0.732	0.814	-10.1%

The final quarterly report will become retrievable on the Company’s home page on 13 May 2015.

http://www.drillisch.de/investor-relations/berichte

Maintal, 12 May 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 20 March 2015 will differ from those shown here.

Contact:

Oliver Keil

Head of Investor Relations

Mail: ir@drillisch.de

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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

End of News	DGAP News-Service

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