Earnings Release • Nov 9, 2011
Earnings Release
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Ad-hoc | 9 November 2011 21:06
Successful first nine months of 2011 for United Internet
United Internet AG / Key word(s): Interim Report
09.11.2011 21:06
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
Successful first nine months of 2011 for United Internet
Montabaur, November 9, 2011. The Management Board of United Internet AG
(ISIN DE0005089031) today announced the consolidated results according to
IFRS for the first nine months of 2011.
Group development
In the first nine months of 2011, consolidated sales of United Internet AG
grew by 9.1% from EUR 1.409 billion last year to EUR 1.537 billion. United
Internet also achieved strong growth in customer contracts: with the
addition of 610,000 new contracts to 10.37 million, growth easily exceeded
that of the previous year (430,000 new contracts). The marketing campaign
launched in September 2011 to accompany the roll-out of the 1&1
Do-it-Yourself Homepage in five foreign markets had not yet impacted
customer figures as of September 30, 2011, as customers are only registered
as 'genuine contractual customers' when their free 30-day trial is
completed. A total of EUR 35 million has been budgeted for this campaign in
the second half of 2011, of which EUR 9.3 million was expensed in the third
quarter. United Internet expects a positive impact on contract figures with
a noticeable acceleration of customer growth in the fourth quarter of 2011.
Despite the costs for this campaign, heavy smartphone subsidizing in its
Mobile Internet business, and heavy investment in the development of new
products and further international expansion, United Internet posted a very
good result. Earnings before interest, taxes, depreciation and amortization
(EBITDA) grew by 5.6% to EUR 285.9 million (prior year: EUR 270.8 million),
while earnings before interest and taxes (EBIT) reached year-on-year growth
of 6.2% to EUR 223.6 million (prior year: EUR 210.6 million). Earnings
before taxes (EBT) increased by 15.7% from EUR 181.6 million to EUR 210.2
million. These earnings include a positive net balance of EUR 16.3 million
resulting from the sale of Versatel shares in the second quarter of 2011,
the valuation of call options received in this connection, and the
at-equity result of Versatel. The resulting positive earnings effect
amounted to EUR 0.07 per share. Earnings per United Internet share (EPS)
rose by 30.2% from EUR 0.53 last year to EUR 0.69.
Group development Jan.-Sept. Jan.-Sept. Change
9-month comparison (in EUR million) 2010 2011
Sales 1,409.0 1,537.1 + 9.1%
EBITDA 270.8 285.9 + 5.6%
EBIT 210.6 223.6 + 6.2%
EBT 181.6 210.2 +15.7%
EPS (in EUR) 0.53 0.69 +30.2%
Development of business in the 'Access' segment
As a consequence of the positive development in customer contracts, sales
in the 'Access' segment grew by 10.4% to EUR 1.008 billion. Despite a
significant increase in costs for new customer acquisition, especially for
smartphone subsidizing in the Mobile Internet business, there was
year-on-year growth in segment EBITDA of 6.3% to EUR 109.1 million (prior
year: EUR 102.6 million), while segment EBIT rose by 5.3% from EUR 82.8
million to EUR 87.2 million.
Development of Access segment Jan.-Sept. Jan.-Sept. Change
9-month comparison (in EUR million) 2010 2011
Sales 913.0 1,008.2 + 10.4%
EBITDA 102.6 109.1 + 6.3%
EBIT 82.8 87.2 + 5.3%
The number of fee-based Access contracts grew by a total of 280,000
contracts, from 3.63 million as of December 31, 2010 to 3.91 million as of
September 30, 2011.
Customer contracts in Access segment Sept. 30, Dec. 31, Sept. 30,
(in million) 2010 2010 2011
Access, total 3.55 3.63 3.91
of which DSL complete (ULL) 2.21 2.32 2.45
of which Mobile Internet 0.17 0.27 0.61
of which narrowband / T-DSL / R-DSL 1.17 1.04 0.85
Development of business in the 'Applications' segment
Sales of the 'Applications' segment also grew strongly by 6.7% to EUR 528.7
million. Adjusted for currency effects, segment growth amounted to 8%.
Business outside Germany grew by 9.8% and contributed a total of EUR 161.9
million (prior year: EUR 147.4 million) to segment sales. Key earnings
figures in this segment comprise high expenditure for the development of
new Cloud products, the cost of international expansion, and greatly
increased marketing expenses as of the third quarter - especially for the
marketing of the 1&1 Do-it-Yourself Homepage. In the third quarter of 2011
alone, EUR 9.3 million was expensed of the total marketing campaign budget
of EUR 35 million for the international roll-out of the 1&1 Do-it-Yourself
Homepage. Against this backdrop, there was an expected year-on-year decline
in segment EBITDA to EUR 153.0 million (prior year: EUR 172.8 million) and
in segment EBIT to EUR 112.7 million (prior year: EUR 132.5 million).
Development of Applications segment Jan.-Sept. Jan.-Sept. Change
9-month comparison (in EUR million) 2010 2011
Sales 495.5 528.7 + 6.7%
EBITDA 172.8 153.0 -11.5%
EBIT 132.5 112.7 -14.9%
The number of fee-based Applications contracts grew by 330,000 to 6.46
million in the first nine months of 2011 (of which 2.63 million abroad).
Ad-financed accounts rose from 28.0 million to 30.4 million - whereby the
1.5 million free accounts of Mail.com were included for the first time.
Customer contracts in Applications Sept. 30, Dec. 31, Sept. 30,
segment (in million) 2010 2010 2011
Total fee-based contracts 6.03 6.13 6.46
of which domestic 3.63 3.68 3.83
of which foreign 2.40 2.45 2.63
Ad-financed accounts 27.3 28.0 30.4
Outlook
In view of its successful performance in the first nine months of 2011,
United Internet can confirm its guidance for fiscal year 2011. To be
precise, the company expects consolidated sales of around EUR 2.050
billion, EBITDA of approx. EUR 350 million, EBT of approx. EUR 250 million
and an EPS figure of around EUR 0.80. On publication of its half-yearly
figures, United Internet raised its guidance for customer growth from
700,000 new contracts to 840,000. Following the roll-out of its foreign
marketing campaign for the 1&1 Do-it-Yourself Homepage, the company has
once again raised its guidance and now expects growth of around 900,000
contracts (comparable prior-year figures: 440,000 contracts in 2009,
610,000 contracts in 2010).
Marcus Schaps
Head of Public Relations
United Internet AG
Elgendorfer Straße 57
56410 Montabaur
Tel: 02602/96-1076
Fax: 02602/96-1013
E-Mail: [email protected]
Internet: www.united-internet.de
09.11.2011 DGAP's 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: United Internet AG
Elgendorfer Straße 57
56410 Montabaur
Germany
Phone: +49 (0)2602 / 96 - 1100
Fax: +49 (0)2602 / 96 - 1013
E-mail: [email protected]
Internet: www.united-internet.de
ISIN: DE0005089031
WKN: 508903
Indices: TecDAX
Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard);
Freiverkehr in Düsseldorf, Hamburg, Hannover, München,
Stuttgart
End of Announcement DGAP News-Service
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