Earnings Release • Aug 16, 2011
Earnings Release
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Ad-hoc | 16 August 2011 07:27
Successful first half-year 2011 for United Internet
United Internet AG / Key word(s): Half Year Results
16.08.2011 07:27
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.
Montabaur, August 16, 2011. The Management Board of United Internet AG
(ISIN DE0005089031) today announced the consolidated results according to
IFRS for the first six months of 2011.
Group development
Consolidated sales of United Internet AG grew by 8.4% from EUR 930.8
million in the previous year to EUR 1,009.4 million in the first six months
of 2011. United Internet also achieved strong growth in customer contracts:
with the addition of 400,000 new contracts to 10.16 million, growth easily
exceeded that of the first half-year 2010 (290,000 new contracts). Despite
high costs for new customer acquisition, especially in the form of
smartphone subsidies in its Mobile Internet business, as well as high costs
for the development of new products and further international expansion,
United Internet succeeded in posting very good earnings. Both earnings
before interest, taxes, depreciation and amortization (EBITDA) and earnings
before interest and taxes (EBIT) were well up on the previous year at EUR
200.9 million (prior year: EUR 182.0 million) and EUR 160.0 million (prior
year: EUR 142.2 million), respectively. Earnings before taxes (EBT) grew by
22.9% from EUR 117.3 million last year to EUR 144.2 million. These earnings
figures include a positive net balance of EUR 16.3 million from the sale of
Versatel shares, the valuation of related call options received, and the
negative at-equity result of Versatel included for the last time in the
consolidated figures. Earnings per United Internet share (EPS) improved by
41.2% from EUR 0.34 to EUR 0.48.
Group development Jan.-June Jan.-June Change
Quarterly comparison (in EUR million) 2010 2011
Sales 930.8 1,009.4 + 8.4%
EBITDA 182.0 200.9 + 10.4%
EBIT 142.2 160.0 + 12.5%
EBT 117.3 144.2 + 22.9%
EPS (in EUR) 0.34 0.48 + 41.2%
Development of business in the 'Access' segment
As a consequence of the positive development in customer contracts, sales
in the 'Access' segment grew by 9.1% to EUR 657.2 million. Despite a
significant increase in costs for new customer acquisition, especially due
to the additional marketing - compared to the first half of 2010 - of new
Mobile Internet products, segment EBITDA and EBIT remained virtually
unchanged from the previous year at EUR 65.5 million (prior year: EUR 66.2
million) and EUR 51.0 million (prior year: EUR 53.2 million), respectively.
Development of Access segment Jan.-June Jan.-June Change
Quarterly comparison (in EUR million) 2010 2011
Sales 602.2 657.2 + 9.1%
EBITDA 66.2 65.5 - 1.1%
EBIT 53.2 51.0 - 4.1%
The number of fee-based Access contracts grew by a total of 160,000
contracts, from 3.63 million as of December 31, 2010 to 3.79 million as of
June 30, 2011.
Customer contracts in Access segment June 30, Dec. 31, June 30,
(in million) 2010 2010 2011
Access, total 3.50 3.63 3.79
of which DSL complete (ULL) 2.01 2.32 2.41
of which Mobile Internet 0.09 0.27 0.48
of which narrowband / T-DSL / R-DSL 1.40 1.04 0.90
Development of business in the 'Applications' segment
Sales of the 'Applications' segment also grew strongly by 7.3% to EUR 352.0
million. Adjusted for currency effects, growth amounted to 8 %. As
expected, segment EBITDA was down on the previous year at EUR 111.4 million
(prior year: EUR 118.9 million) while segment EBIT reached EUR 85.1 million
(prior year: EUR 92.3 million). This was due to high expenditure for the
development of new Cloud products, international expansion, and greatly
increased marketing expenses especially for the additional marketing -
compared to the first half of 2010 - of the 1&1 Do-it-Yourself Homepage.
Development of Applications segment Jan.-June Jan.-June Change
Quarterly comparison (in EUR million) 2010 2011
Sales 328.2 352.0 + 7.3%
EBITDA 118.9 111.4 - 6.3%
EBIT 92.3 85.1 - 7.8%
The number of fee-based Applications contracts grew by 240,000 to 6.37
million in the first six months of 2011 (of which 2.58 million abroad).
Ad-financed accounts rose from 28.0 million to 28.5 million.
Customer contracts in Applications June 30, Dec. 31, June 30,
segment (in million) 2010 2010 2011
Total fee-based contracts 5.94 6.13 6.37
of which domestic 3.59 3.68 3.79
of which foreign 2.35 2.45 2.58
Ad-financed accounts 26.6 28.0 28.5
Outlook
In view of the successful first six months of 2011, United Internet has
raised its sales guidance and now expects record consolidated sales of
around EUR 2.050 billion. In the remaining six months, the strong progress
of business and special items such as the deconsolidation of the
loss-making Versatel investment will provide additional financial scope for
United Internet. This scope will be used to strengthen customer acquisition
efforts and launch an extensive marketing campaign for the 1&1
Do-it-Yourself Homepage in five foreign markets. The campaign will cost
around EUR 35 million and aims to raise awareness of the 1&1 brand and
clearly position it as a solution-provider for small companies. At the same
time, the number of new customers is expected to grow further.
Specifically, the company has raised its customer growth forecast for 2011
by 20%, from 700,000 contracts to 840,000. This will broaden the basis for
a successful performance in the years ahead. Despite strongly increased
sales and marketing budgets, United Internet expects EBITDA to reach
approx. EUR 350 million and has upheld its EBT guidance of around EUR 250
million and its EPS forecast of around EUR 0.80/share.
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
16.08.2011 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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