1&1 Drillisch
13.11.2018

1&1 Drillisch AG - on a Course of Growth in the First 9 Months of 2018

- Number of customer contracts rises by 690,000 to 13.33 million

- Revenue per IFRS 15 grows by 36.5% to EUR2.719 billion (pro forma +12.7%)

- EBITDA per IFRS 15 rises by 48.8% to EUR524.8 million (pro forma +16.1%)

 

Maintal, 13 November 2018 - 1&1 Drillisch AG (ISIN DE 0005545503) continued on its course of growth in the first nine months of 2018. The Company was able to increase further the number of customers, the revenues and the operating profit figures.

 

During the first nine months of 2018, 1&1 Drillisch continued to invest strongly in new customer contracts as well as in retention and increased value of current customer relationships to secure sustained growth in profits. The number of customer contracts rose during the first nine months by 690,000 to 13.33 million contracts (31/12/2017: 12.64 million). The number of contract customers in the mobile internet sector was increased by 630,000 to 8.93 million (31/12/2017: 8.30 million) while DSL lines increased by 60,000 to 4.40 million (31/12/2017: 4.34 million).

 

In comparison with the same period of the previous year, the revenue and profit figures were impacted by the initial consolidation of Drillisch and by positive conversion effects from the initial application in the accounting of IFRS 15 (previous year: IAS 18). Contrary effects come from the expected reductions in profit from contract growth and the increased use of smartphones for new and current customers (no or only low one-time payments by customers on conclusion of the contract and return via higher rate prices over the term of the contract). The IFRS 15 effects on revenue are positive (EUR+202.2 million) while the IFRS 15 effects on profit figures and the expenditures for the increased use of smartphones virtually offset each other completely.

 

Specifically, reported revenue in the first nine months of 2018 rose in comparison with the same period of the previous year by 36.5% from EUR1.992 billion (previous accounting in accordance with IAS 18) to EUR2.719 billion (accounting in accordance with IFRS 15). From the pro forma perspective (with the inclusion of Drillisch in the previous year), revenue rose by 12.7% from EUR2.413 billion (previous accounting in accordance with IAS 18) to EUR2.719 billion (accounting in accordance with IFRS 15).

 

Disclosed earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 48.8% from EUR352.7 million (previous accounting in accordance with IAS 18) to EUR524.8 million (accounting in accordance with IFRS 15). From the pro forma perspective (with the inclusion of Drillisch in the previous year), the EBITDA rose by 16.1% from EUR452.2 million (previous accounting in accordance with IAS 18) to EUR524.8 million (accounting in accordance with IFRS 15). The initially positive effects from the changeover to IFRS 15 contained in this figure totalling EUR198.9 million are offset by additional investments (above all, from the increased use of smartphones) in the same amount so that the two items balance each other out in the bottom line, and to this extent the figures are comparable with those of the previous year. Moreover, the EBITDA of the first nine months of 2018 contains realised synergies in the amount of about EUR31.3 million and one-off expenditures from ongoing integration projects in the amount of EUR12.4 million.

 

Consolidated EBIT (earnings before interest and taxes) rose by 24.4% from EUR328.9 million (previous accounting in accordance with IAS 18) to EUR409.1 million (accounting in accordance with IFRS 15). The lower percentage growth in comparison with the EBITDA results from the increase in write-offs from purchase price allocations (so-called PPA write-offs) related to the takeover of Drillisch in 2017.

 

"Our revenue and profit figures continued to display positive development in the first 9 months of 2018. We are on course to achieve our targets for the year," summarised Ralph Dommermuth, CEO of 1&1 Drillisch AG, the course of business so far.

 

Performance indicators pursuant to IFRS - comparison 9M 2018 v 9M 2017

in EURm9M 2018
(IFRS 15)
9M 2017
(IAS 18)
Change9M 2017
Pro forma
(IAS 18)*
Change
Revenue2,719.41,992.0+36.5%2,413.4+12.7%
EBITDA524.8352.7+48.8%452.2+16.1%
EBITDA margin in %19.3%17.7% 18.7% 
EBIT409.1328.9+24.4%404.7+1.1%
EBIT margin in %15.0%16.5% 16.7% 
Profit per share in EUR1.582.03**-22.0%2.36**-32.8%
Profit per share in EUR excluding PPA write-offs1.922.08**-7.8%  
      
Customer contracts in current product lines (million)13.3312.39+7.6%  
thereof mobile internet8.938.06+10.8%  
thereof DSL/VDSL4.404.33+1.6%  

 

*Pro forma perspective: inclusion of Drillisch
**Excluding the positive special effects from the sale of Versatel Group The calculation of the profit per share per 30 September 2017 took into account the weighted average of the number of shares outstanding in the period from January to September 2017.

The interim report will become available on the Company's home page on 13 November 2018.
https://www.1und1-drillisch.de/investor-relations/reports

 

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.

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