1&1 AG - Earnings Release 2015 | FinancialReports.eu

News Details

Corporate | 23 March 2016 20:20

Drillisch AG: Increased EBITDA forecast exceeded and Increase of Dividend

DGAP-News: Drillisch AG / Key word(s): Final Results/Dividend

2016-03-23 / 20:20

The issuer is solely responsible for the content of this announcement.

Drillisch AG: Increased EBITDA forecast exceeded and Increase of Dividend

Highlights of fiscal year 2015

– Service revenue rises by EUR149.1 million to EUR433.7 million (+52.4% over previous year)

– Gross profit rises by EUR111.8 million to EUR254.4 million (+78.4% over previous year)

– Gross profit per MVNO user (AGPPU) rises to EUR7.34 (+13.4% over previous year)

– EBITDA* rises by EUR20.4 million to EUR105.6 million (+23.9% over previous year)

– MVNO clientele grows by 659,000 to 2.587 million (+34.2% over previous year)

– Dividend increase to EUR1.75 per voting share

Maintal, 23 March 2016

Drillisch AG (ISIN DE 0005545503) has once more significantly increased the major performance indicators and further improved the earning power of the company in what is overall a difficult and challenging market environment.

Strong development in service revenue:

On a market characterised by stiff competition, Drillisch increased service revenue by 52.4% to EUR433.7 million (2014: EUR284.6 million) in fiscal year 2015.

Positive subscriber development:

The total number of MVNO subscribers grew by 659,000 (34.2%) to 2.587 million subscribers (2014: 1.928 million subscribers). The driver behind this positive development was once again the extremely dynamic growth in the highly profitable budget subscribers. The number here rose by 721,000 (59.5%) to 1.932 million subscribers (2014: 1.211m subscribers). The number of subscribers in the significantly lower-margin volume segment, on the other hand, declined to 655,000 (2014: 717,000 subscribers).

Substantial increase in gross profit:

Thanks to growth in number of lines in combination with improvement in the quality of the rate plan mix, gross profit rose by EUR111.8 million (78.4%) to EUR254.4 million (2014: EUR142.6m). As a consequence of the first-time inclusion of the offline segment, the gross profit margin decreased to 40.4% (2014: 49.2%).

Average gross profit per MVNO user (AGPPU) increased by 13.4% to EUR7.34 (2014: EUR6.47) in fiscal year 2015.

EBITDA sets a new record and exceeded the increased forecast:

The EBITDA (earnings before interest, taxes, depreciation and amortisation) rose by EUR20.4 million (23.9%) to EUR105.6 million (2014: EUR85.2m) This figure includes EUR310k from closed business divisions originating from the sale of Phone House Management GmbH, Münster, in November. The EBITDA margin decreased to 16.8% (2014: 29.4%), also essentially a consequence of the first-time inclusion of the offline segment. Moreover, advertising costs rose significantly by EUR50.4 million in the year-on-year comparison. In fiscal year 2015, total advertising expenditures amounted to EUR64.5 million (previous year: EUR14.1m).

The EBIT * (earnings before interest and taxes) amounted to EUR69.5 million (previous year: EUR75.3m), corresponding to an EBIT margin of 11.0% (previous year: 26.0%).

Amortisation and depreciation rose by EUR26.2 million to EUR36.1 million (previous year: EUR9.9m). This rise in amortisation and depreciation is basically a consequence of the first-time inclusion of yourfone and Phone House in the consolidated annual accounts. The intangible assets identified within the framework of the provisional purchase price allocation of Phone House and the purchase price allocation of yourfone will be written off over the usual useful life of 2.5 and 6 years, respectively. The resulting amortisation and depreciation totals EUR15.8 million (previous year: EUR0.0). Since the provisional purchase price allocation for Phone House was taken into account for the first time in Q4, there was retroactively an impact on the amortisation and depreciation in Q4 for the period as of the acquisition in May 2015. Depreciation and amortisation of EUR5.0 million (previous year EUR0.0) result from Drillisch’s contribution of EUR150 million agreed with Telefónica as part of the MBA MVNO model to the investments previously made and to be made in future by Telefónica in the expansion of the LTE network and in future technologies; this contribution was capitalised under Other intangible assets and will be written off over the expected useful life of 15 years.

Depreciation and amortisation of EUR5.0 million (previous year EUR0.0) result for the period beginning with the start of MBA MVNO operations per 1 July 2015 from Drillisch’s contribution of EUR150 million agreed with Telefónica as part of the MBA MVNO model to the investments previously made and to be made in future by Telefónica in the expansion of the LTE network and in future technologies; this contribution was capitalised under Other intangible assets and will be written off over the expected useful life of 15 years

Increase in cash flow from current business activities:

Cash flow from current business activities rose in the past fiscal year 2015 by EUR4.5 million (6.2%) to EUR76.2 million (2014: EUR71.8m).

Comfortable liquidity position:

Following the purchase of the yourfone GmbH in Q1 2015, which led to an outflow of funds of EUR62.0 million, the disbursement of the dividends in the amount of EUR90.4 million (previous year: EUR76.8m) in Q2 2015 and the agreed payment to Telefónica in Q3 of EUR150.0 million related to the launch of the MBA MVNO model for the expansion of the LTE network and future technologies, cash at the end of the fiscal year amounted to EUR123.4m (31/12/2014: EUR317.1m). In combination with attractive financing opportunities, Drillisch AG has adequate flexibility to expand or supplement its business activities as expedient even after these payments.

Positive development continues on a quarterly basis as well:

On a quarterly basis, service revenue rose by EUR45.4 million (60.7%) to EUR120.2 million (Q4 2014: EUR74.8m).

Gross profit in Q4 2015 rose by EUR37.7 million (100.9%) to EUR75.0 million (Q4 2014: EUR37.4m). The gross profit margin amounted to 43.0% (Q4 2014: 48.7%).

Fourth-quarter EBITDA* 2015 came to EUR17.4 million (Q4 2014: EUR20.6m). The decline in comparison with the same quarter of the previous year was truly moderate in view of the increase in advertising expenditures from EUR5.7m in the previous year to EUR22.1m in Q4 2015. The EBITDA margin amounted to 10.0% (Q4 2014: 26.9%).

Confirmation of the EBITDA forecast 2016:

Drillisch is aiming to increase significantly its MVNO clientele and improve further its mix of rate plans, thereby continuing the positive development of profits in its operating business and a rise in revenue.

Investment in the development of the subscriber basis in fiscal year 2016 will remain at a high level, buoyed by the rising number of customers and the parallel further positive development in gross profit. The Management Board expects an increase in EBITDA to between EUR115 million and EUR120 million (2015: EUR105.6m) in 2016.

Proposed dividend and confirmation of the long-term dividend policy:

As a consequence of the good development of business, the comfortable liquidity position and the expectation of positive operating cash flow, the Drillisch AG Management Board and Supervisory board is planning to propose an increase of the cash dividend for fiscal year 2015 to EUR1.75 per voting share to the next ordinary Annual General Meeting. In keeping with our corporate policy and its aim of sustained business operations, we will strive to pay a dividend of the same amount as a minimum in fiscal year 2016.

This is our way of involving our shareholders in the positive development of our business over the long term.

Drillisch Group for 2015 (IFRS)


	2015	2014	Change in %
Revenue in EURm	629.5	289.6	+117.3
Service revenue in EURm	433.7	284.6	+52.4
Gross profit in EURm	254.4	142.6	+78.4
Gross profit margin	40.4%	49.2%
AGPPU average gross profit per user (MVNO) (blended) in EUR	7.34	6.47	+13.4
EBITDA in EURm *	105.6	85.2	+23.9
EBITDA margin	16.8%	29.4%
EBITDA (adjusted)in EURm *	107.9	85.2	+26.6
EBITDA margin (adjusted)	17.1%	29.4%
EBIT in EURm *	69.5	75.3	-7.7
Cash flow from current business activities in EURm	76.2	71.8	+6.2
Cash in EURm	123.4	317.1	-61.1
Debenture bonds in EURm	91.5	88.8
Financial liabilities in EURm	0.0	0.0
Subscribers (thousands)	2.678	2.070	+29.4
Thereof MVNO subscribers	2.587	1.928	+34.2
Thereof budget subscribers	1.932	1.211	+59.5
Thereof volume subscribers	655	717	-8.6

* – Includes the results from closed business divisions of EUR310k

Group for Q4 2015 (IFRS)


	Q4 15	Q4 14	Change in %	Q3 15
Revenue in EURm	174.4	76.6	+127.6	201.6
Service revenue in EURm	120.2	74.8	+60.7	113.2
Gross profit in EURm	75.0	37.4	+99.0	76.2
Gross profit margin	43.0%	48.7%		37.8%
AGPPU average gross profit per user (MVNO) (blended) in EUR	7.28	6.42	+13.4	7.47
EBITDA in EURm *	17.4	20.6	-15.6	34.9
EBITDA margin	10.0%	26.9%		17,3%
EBITDA (adjusted) in EURm *	17.4	20.6	-15.5	35.3
EBITDA margin (adjusted)	10.0%	26.9%		17.5%

* – Includes the results from closed business divisions of EUR310k

The complete, audited Annual Report will be available from 24 March 2016 at the following link:

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

Maintal, 23 March 2016

Drillisch AG

The Management Board

Disclaimer: This report contains certain statements oriented to 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: [email protected]

2016-03-23 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.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.

Media archive at www.dgap-medientreff.de and www.dgap.de


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:	[email protected]
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; Terminbörse EUREX