DRILLISCH AG (FRA:DRI) 1&1 Drillisch AG Posts Growth in Clientele and Revenues in 2019. Earnings Decline Owing to Higher Costs for Advance Services.

Transparency directive : regulatory news

25/03/2020 19:05

DGAP-Ad-hoc: 1&1 Drillisch Aktiengesellschaft / Key word(s): Annual Results/Forecast
1&1 Drillisch AG Posts Growth in Clientele and Revenues in 2019. Earnings Decline Owing to Higher Costs for Advance Services.

25-March-2020 / 19:05 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.


1&1 Drillisch AG Posts Growth in Clientele and Revenues in 2019. Earnings Decline Owing to Higher Costs for Advance Services.

- 790,000 new customer contracts

- Revenues increase by 1.1 percent to €3.67 billion

- Service revenues increase by 3.1 percent to €2.94 billion

- EBITDA declines to €683.5 million after €721.9 million in the previous year

- Free cash flow improved from €142.6 million to €355.4 million

- Forecast 2020: revenues and earnings at previous year's level

Maintal, 25 March 2020 - 1&1 Drillisch AG (ISIN DE 0005545503) was able to increase the number of customer contracts in comparison with the previous year's closing date by 790,000 to 14.33 million contracts in fiscal year 2019 (2018: 13.54 million). At the same time, revenue grew by 1.1 percent to EUR 3,674.9 million (2018; EUR 3,634.5 million; comparable figure for the previous year after restatement of the revenue disclosure for one group subsidiary). The high-margin service revenues increased by €88.6 million (3.1 percent) to €2,943.0 million (2018: €2,854.4 million; comparable previous year's value). These earnings are the focus of attention because they are sustainable and determine profit.

The Group EBITDA (earnings before interest, taxes, depreciation and amortisation) amounted to €683.5 million (2018: €721.9 million). The EBITDA includes effects of the changeover to IFRS 16 (€+6.9 million), one-offs related to the Drillisch integration (€-3.2 million; previous year: €-25.1 million), consequences of the regulatory decision on the increase in subscriber line charges (€-8.8 million) and the EU regulatory decision regarding costs of text messages (€-5.6 million), the initial costs for the construction of a 5G wireless network (€-5.7 million) and substantial additional costs for advance service purchases following the expiration of the temporary adjustment mechanism of an advance service contract at the end of 2018 (€-83.1 million).

Excluding the above-mentioned burdens on earnings and one-offs, a comparable EBITDA would have risen year-on-year by 4.8 percent.

Earnings before interest and taxes (EBIT), which were virtually unaffected by IFRS 16 accounting, fell by 6.8% from €567.2 million to €528.5 million. The negative effects on earnings and the one-offs mentioned above are also included in the EBIT.

Profit per share came to €2.12 (2018: €2.30).

Dividend proposal and Annual General Meeting

In view of the upcoming investments for the 5G network expansion, the Management Board and Supervisory Board will propose an unchanged dividend of €0.05 per voting share to the Annual General Meeting.

Outlook

The Company expects revenue and earnings for fiscal year 2020 to be roughly on a par with the level of the previous year.

Performance indicators pursuant to IFRS - comparison 2019 v. 2018

in €m 2018 2019 Change in %
Revenues 3,634.5 3,674.9 + 1.1%
Service revenues 2,854.4 2,943.0 + 3.1%
EBITDA 721.9 683.5 - 5.3%
EBITDA margin in % of turnover 19.9% 18.6%  
EBIT 567.2 528.5 - 6.8%
EBIT margin in % of revenue 15.6% 14.4%  
Profit per share 2.30 2.12 - 7.7%
 
Net inflow of funds from operating activity 155.6 375.7 + 141.5%
 
Customer contracts in millions
Current product lines 13.54 14.33 + 5.8%
of which mobile internet 9.20 9.99 + 8.6%
of which broadband lines (VDSL, ADSL, FTTH) 4.34 4.34 Unchanged
 


The complete Annual Report will be made available on the Company's home page on 26 March 2020.
https://www.1und1-drillisch.de/investor-relations/reports

Maintal, 25 March 2020

1&1 Drillisch AG
The Management Board

Note:
Financial performance indicators such as EBITDA, EBITDA margin, EBIT, EBIT margin or free cash flow are used in addition to the disclosures required by the International Financial Reporting Standards (IFRS) in the annual and interim financial statements of 1&1 Drillisch AG and in ad hoc reports pursuant to Art. 17 MAR to ensure a clear and transparent presentation of 1&1 Drillisch's business development. Information about the use, definition and calculation of these performance indicators is available on page 37 of the Annual Report 2019 of 1&1 Drillisch AG.

Disclaimer: This report contains statements regarding the future which are based on the current assumptions and projections of the 1&1 Drillisch AG management. 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.




Contact:
Oliver Keil
Head of Investor Relations
Mail: ir@1und1-drillisch.de

25-March-2020 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de


Language: English
Company: 1&1 Drillisch Aktiengesellschaft
Wilhelm-Röntgen-Straße 1-5
63477 Maintal
Germany
Phone: +49 (0) 6181 - 412 218
Fax: +49 (0) 6181 - 412 183
E-mail: ir@1und1-drillisch.de
Internet: www.1und1-drillisch.de
ISIN: DE0005545503
WKN: 554550
Indices: SDAX
TecDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange
EQS News ID: 1007237

 
End of Announcement DGAP News Service

1007237  25-March-2020 CET/CEST

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