3U Holding AG — Earnings Release 2006

Nov 13, 2006

News Details

Ad-hoc | 13 November 2006 18:12

3U TELECOM AG: Profit target attained, sales target nearly achieved

Ad hoc announcement transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— Marburg, November 13, 2006 – 3U TELECOM AG continues to find itself in an extremely difficult market environment. Aggressive competitors, decreasing margins and an intensive price war demand continual amendment in line with changing market conditions through accompanying restructuring measures. The repositioning in the fixed-line telephony segment, adopted and initiated last quarter with a focus on the areas call-by-call and wholesale, has already brought the first successes. The streamlining of the structural costs has been implemented. As a consequence, from our current stance the profit target (EBITDA) for 2006 can be met despite the deterioration in the competitive conditions. In the first nine months of the current business year 3U TELECOM AG has, according to provisional figures, posted sales of 97.21 million euros. This corresponds to a growth of 8.08 million euros, or 9.1 %, in a year-on-year comparison (89.13 million euros). Sales of 32.13 million euros were posted in the third quarter, a slight downturn over the previous quarter (32.92 million euros). The EBITDA rose by 2.35 million euros, or 49.9 %, from 4.71 million euros in the first nine months of the past business year to 7.06 million euros, whereby the EBITDA in the current 2006 business year was adjusted for the one-off positive special effects from the agreement with Cogent Communications Group Inc. (4.74 million euros in the second quarter of 2006) and the fund income realized in the third quarter (2.2 million euros). With respect to the EBITDA for 2005, all the one-off effects were also eliminated. The EBITDA in the third quarter amounted to 1.92 million euros (previous quarter: 2.35 million euros). For the year as a whole the management continues to believe that the EBITDA will be 8.5 million euros. The previously announced sales target for the group in 2006 will, at just under 130 million euros, not be attained in full. The result for the first nine months of the current business year was slightly negative at -1.19 million euros (same period previous year: 5.17 million euros due to positive special effects totalling nearly 15 million euros). This corresponds to earnings per share of -0.03 euro (same period previous year: 0.09 euro). In a year-on-year comparison the equity capital ratio of 3U TELECOM AG has increased by 3.3 % to 38.07 %. Despite the scheduled repayment of bank liabilities (2.61 million euros), the liquids fund at the group amounted to 41.67 million euros (same period previous year: 40.18 million euros). On the whole the liquidity holdings will decrease towards the end of the year through the additional residual repayment of the convertible bond at the subsidiary LambdaNet Communications Deutschland AG (4.2 million euros). The development of earnings in the third quarter of the current business year confirms that 3U TELECOM AG has implemented the adopted restructuring measures consistently and swiftly. Nevertheless, the board of management assumes that the telecommunications market will continue to be an increasingly difficult environment, with only limited potential for growth and earnings for 3U TELECOM AG in the medium term. The objective, therefore, is initially that of stabilizing the operating profitability of the group despite the expected downturn in sales in fixed-line telephone, while in the medium term availing of any possible strategic options to enhance the potential for sales and earnings. In this respect the existing liquid and near-liquid funds strengthen the room for manoeuvre on the part of the group. The full quarterly report will be published on November 15, 2006. Contact: 3U TELECOM AG Kirsten Götsche Tel.: 06421 999-1200 Fax: 06421 999-1998 goetsche@3u.net (c)DGAP 13.11.2006 ————————————————————————— Language: English Issuer: 3U TELECOM AG Neue Kasseler Str. 62 F 35039 Marburg Deutschland Phone: +49 (0)6421/999-0 Fax: +49 (0)6421/999-1111 E-mail: boerse@uuu.de WWW: boerse@uuu.de ISIN: DE0005167902 WKN: 516790 Indices: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-Bremen, Stuttgart, München, Hamburg, Düsseldorf End of News DGAP News-Service —————————————————————————