Corporate | 12 May 2014 13:25

Drillisch AG posts substantial increase in profit and growth in subscriber base in Q1

Drillisch AG / Key word(s): Quarter Results/Forecast

12.05.2014 / 13:25

Drillisch AG posts substantial increase in profit and growth in subscriber base in Q1

– Revenues in Service stable at EUR70.0 million (Q1 2013: EUR69.9m)

– Gross profit +24.0% to EUR32.9 million (Q1 2013: EUR26.6m)

– EBITDA +26.8% to EUR20.5 million (Q1 2013: EUR16.2m)

– MVNO subscribers +15.0% to 1.760 million (Q1 2013: 1.531 million)

– Of which budget subscribers +63.1% to 946,000 (Q1 2013: 580,000)

– Average gross profit per MVNO user (AGPPU) +10.2% to EUR6.39 (Q1 2013: EUR5.80)

Maintal, 12 May 2014 – Drillisch AG (ISIN DE 0005545503) has had an excellent start to 2014 and once again substantially increased earning power in comparison with the same period of the previous year. Although operating in a difficult and challenging market environment characterised by stiff competition, the positive development of the major earnings indicators continued.

Development of subscriber base continues to be positive:
During Q1 2014, the MVNO subscriber base grew by 15.0% (229,000 subscribers) to 1.760 million (Q1 2013: 1.531 million). While the number of volume subscribers declined by 137,000 to 814,000 (Q1 2013: 951,000), the corresponding figure for the significantly more profitable budget subscribers rose by 63.1% (366,000) to 946,000 (Q1 2013: 580,000). These figures represent a continuation of the positive development in customer quality and the parallel improvement in earnings of recent quarters. During Q1 2014, the total subscriber base grew by 4.5% (84,000 subscribers) to 1.935 million (Q1 2013: 1.851 million). The share of MVNO subscribers in the total customer base amounts to 90.9% (31/12/2013: 89.7%).

Significant improvement in profit from stable revenues in Service:
Although the Service revenue remained virtually constant at EUR70 million (Q1 2013: EUR69.9m), gross profit increased by 24.0% (EUR6.4 million) to EUR32.9 million (Q1 2013: EUR26.6m). The gross profit margin improved by 10.6 percentage points to 46.2% (Q1 2013: 35.5%). Compared with the same quarter the previous year, Group EBITDA, the most important performance indicator in our business, increased by 26.8% (EUR4.3 million) to EUR20.5 million (Q1 2013: EUR16.2 million). The EBITDA margin improved by 7.1 percentage points to 28.8% (Q1 2013: 21.7%).

Excellent development of cash flow from current business activities:
The cash flow from current business activities rose by EUR16.1 million to EUR10.2 million (Q1 2013: -EUR5.9m). Moreover, a further increase in cash to EUR196.5 million (31/12/2013: EUR187.0 million) in combination with attractive financing opportunities gives us adequate flexibility to expand or supplement our business activities as expedient.

Transparent product portfolio of outstanding quality:
Mobile data utilisation is at the core of our products. By focusing on budget subscribers (subscribers who pay a certain monthly package price for a combination of minutes, text messages and data allowances), we have established an excellent position on the market as the price leader with our online brands McSIM, helloMobil, simply, PHONEX, smartmobil.de, maXXim, winSIM, DeutschlandSIM, discoTEL and discoSURF as well as the premium brands VICTORVOX und Telco; we offer attractive rate plans tailored to customers’ specific needs.

Outlook:
We are planning a further increase in our MVNO clientele for 2014 and 2015 which will naturally lead to a continuation of the positive earnings development in operating business. We expect an EBITDA of between EUR82 million and EUR85 million for 2014 and between EUR95 million and EUR100 million for 2015. We have submitted a dividend proposal for 2013 of EUR1.60 to the Annual General Meeting, which will take place on 21 May 2014. In keeping with our corporate policy and its aim of sustained business, we will strive to pay a dividend of the same amount as a minimum in the coming business year.

Performance indicators in accordance with IFRS

In EURm	Q1 2014	Q1 2013	Change in %
Revenue	71.3	74.7	-4.6%
Service revenue	70.0	69.9	+0.2%
Gross profit	32.9	26.6	+24.0%
Gross profit margin in %	46.2%	35.5%
EBITDA	20.5	16.2	+26.8%
EBITDA margin in %	28.8%	21.7%
	Q1 2014	Q1 2013
Subscribers, in millions	1.935	1.851	+4.5%
thereof MVNO subscribers	1.760	1.531	+15.0%
thereof budget subscribers	0.946	0.580	+63.1%
thereof volume subscribers	0.814	0.951	-14.4%
AGPPU budget subscribers	EUR8.91	EUR9.35	-4.7%
AGPPU volume subscribers	EUR3.50	EUR3.76	-6.9%
AGPPU subscribers (total)	EUR6.39	EUR5.80	+10.2%

On Wednesday 14 May 2014, the final quarterly report will become retrievable on the Company’s home page.
http://www.drillisch.de/index.php?page=berichte&group=investor:berichte

Maintal, 12. May 2014

Drillisch AG
The Management Board

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

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Language:	English
Company:	Drillisch AG
	Wilhelm-Röntgen-Straße 1-5
	63477 Maintal
	Germany
Phone:	+49 (0)6181 412 218
Fax:	+49 (0)6181 412 183
E-mail:	ir@drillisch.de
Internet:	www.drillisch.de
ISIN:	DE0005545503
WKN:	554550
Indices:	TecDAX
Listed:	Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, München, Stuttgart

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