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.
- 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.
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
Maintal, 25 March 2020
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.
Head of Investor Relations
25-March-2020 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
|Company:||1&1 Drillisch Aktiengesellschaft|
|Phone:||+49 (0) 6181 - 412 218|
|Fax:||+49 (0) 6181 - 412 183|
|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