Earnings Release • May 7, 2013
Earnings Release
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Corporate | 7 May 2013 18:09
freenet AG reports successful first quarter as strong-selling digital lifestyle provider
freenet AG / Key word(s): Interim Report/Quarter Results
07.05.2013 / 18:09
freenet AG reports successful first quarter as strong-selling digital lifestyle provider
– First-quarter Group revenue rises to 775.2 million euros (previous year: 757.2 million euros)
– Customer Ownership increases by 3.9 percent to 8.47 million customers (previous year: 8.16 million customers)
– Group net income increases 48 percent to 60.2 million euros (previous year: 40.6 million euros)
– Integration of GRAVIS is progressing as planned
Büdelsdorf, 7 May 2013 – freenet AG today published its interim report for the first quarter of 2013 and confirms its outlook for the 2013 and 2014 fiscal years.
In the first quarter, the company recorded consolidated revenues of 775.2 million euros (previous year: 757.2 million euros). With a revenue contribution of 767.5 million euros (previous year: 742.2 million euros), the mobile communications segment continued to dominate the freenet Group’s business. Contributors to the revenue growth within mobile communications include Gravis – Computervertriebsgesellschaft mbH, the leading digital lifestyle provider for Apple products in Germany, since 1 February, and MOTION TM Vertriebs GmbH, a leading online retailer in the mobile and telecommunications sector, since 20 March.
The ‘Customer ownership’ customer base, an essential performance indicator for high-value customer relationships in mobile communications, was increased 3.9 percent year on year, to 8.47 million customers (previous year: 8.16 million customers). Contract customers accounted for 0.11 million of this increase, while 0.21 million are no-frills customers, who are reached mainly via online distribution channels. The key growth drivers here were increased sales promotion and customer loyalty activities.
The average monthly revenue per user (ARPU) during the first quarter declined year on year, to 22.4 euros for contract customers (previous year: 23.4 euros) and 3.5 euros for no-frills customers (previous year: 3.9 euros).
Therefore, the 6.0 percent increase in gross profit to 167.8 million euros (previous year: 158.3 million euros) in the core business of mobile communications is mainly attributable to the dynamic market development in high-end smartphones – in conjunction with the increasing use of flat rates – and to the extension of the product range to include in-demand digital lifestyle products and accessories.
‘This development confirms our strategic course of building the freenet Group into the leading digital lifestyle provider of high-quality products and services related to our core business of mobile communications,’ says Christoph Vilanek, CEO of freenet AG.
In all, the Group’s EBITDA (earnings before depreciation and amortisation, interest and tax) increased slightly to 85.3 million euros (previous year: 85.1 million euros).
Depreciation and amortization in the quarter under review decreased by 22.9 million euros to 14.2 million euros (previous year: 37.1 million euros), which is almost exclusively due to lower amortisation of intangible assets from the purchase price allocation in connection with the debitel acquisition in fiscal 2008. The change in income taxes, from tax income of 3.1 million euros in Q1/2012 to tax expenses of 0.9 million euros in the quarter under review, is also connected to this.
Thus, net income increased by 48 percent to 60.2 million euros (previous year: 40.6 million euros), equivalent to earnings per share of 0.47 euro (previous year: 0.32 euro).
Free cash flow* for the quarter decreased to 56.4 million euros (previous year: 72.4 million euros). This development mainly relates to the first quarter cut off date. Therefore, bonus payments by one network operator were not received until early April 2013. This payment will accordingly improve the figures for 2013 vis-à-vis the previous year in the second quarter.
‘Based on the good first-quarter results, we are confirming our forecast for the 2013 and 2014 fiscal years,’ says freenet AG CFO Joachim Preisig.
The full interim report for the first quarter of 2013 is available for download from the freenet AG website: http://www.freenet-group.de/investor/index.html .
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* Free cash flow is defined as cash flow from operating activities, minus investments in property, plant and equipment and intangible assets, plus proceeds from the disposal of property, plant and equipment and intangible assets.
End of Corporate News
07.05.2013 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG.
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| Language: | English |
| Company: | freenet AG |
| Hollerstraße 126 | |
| 24782 Büdelsdorf | |
| Germany | |
| Phone: | +49 (0)40 51306-778 |
| Fax: | +49 (0)40 51306-970 |
| E-mail: | [email protected] |
| Internet: | www.freenet-group.de |
| ISIN: | DE000A0Z2ZZ5, DE000A1KQXU0 |
| WKN: | A0Z2ZZ , A1KQXU |
| Indices: | TecDAX |
| Listed: | Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart |
| End of News | DGAP News-Service |
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| 210135 07.05.2013 |
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