Corporate | 13 November 2014 21:00

Drillisch AG posts substantial increase in profit

Drillisch AG / Key word(s): 9-month figures/Quarter Results

13.11.2014 / 21:00

Drillisch AG posts substantial increase in profit and confirms forecasts

Highlights of the first 9 months of 2014

– Service revenue rises by EUR2.6 million to EUR209.8 million (+1.2%)

– Gross profit rises by EUR18.2 million to EUR105.3 million (+20.8%)

– EBITDA increases by EUR12.5 million to EUR64.6 million (+23.9%)

– EBITDA margin rises by 6.4%-points to 30.3%

– MVNO clientele grows by 221,000 to 1.869 million (+13.4%)

– FCF increases by EUR38.6 million to EUR50.6 million (+321.2%)

Maintal, 13 November 2014
Drillisch AG (ISIN DE 0005545503) has once more significantly increased the major performance indicators and further improved the earning power of the company in what is overall a difficult and challenging market environment.

Stable development along with moderate growth in service revenue
In a market environment characterised by stiff competition, Drillisch increased service revenue by 1.2% to EUR209.8 million (9 months 2013: EUR207.2 million) in the first nine months of fiscal year 2014.

Strong subscriber development
The driver for the overall good subscriber development, which increased by 166,000 subscribers (8.9%) to 2.021 million subscribers, was once again the highly dynamic growth in the budget subscriber segment. The number of subscribers here rose by 385,000 (52.5%) to 1.118 million subscribers (9 months 2013: 733 thousand). The number of volume subscribers fell once again as expected to 751,000 (9 months 2013: 915,000 subscribers). MVNO subscribers in total grew by 221,000 (13.4%) to 1.869 million subscribers.

Substantial increase in growth profit
Gross profit rose by EUR18.2 million (20.8%) and reached EUR105.3 million (9 months 2013: EUR87.1m). The gross profit margin improved by 9.4%-points to 49.4% (9 months 2013: 40.0%). Average gross profit per user (AGPPU) increased by 6.0% to EUR6.49 (9 months 2013: EUR6.12) during the reporting period.

EBITDA reaches new high at the upper end of the target corridor
The EBITDA (earnings before interest, taxes, depreciation and amortisation) rose by EUR12.5 million (23.9%) to EUR64.6 million (9 months 2013: EUR52.1m) while the EBITDA margin increased by 6.4%-points to 30.3% (9 months 2013: 23.9%).

Excellent development of cash flow from current business activities
Cash flow from current business activities grew sharply in comparison with the previous year by EUR22.2 million (71.3%) to EUR53.2 million (9 months 2013: EUR31.1m).

No financial liabilities and excellent liquidity
After disbursement of the dividends in the amount of EUR76.8m, cash at the end of the reporting period amounted to EUR160.5m (9 moths 2013: EUR52.7m). This was contrasted by loans and overdrafts of EUR0 million. In combination with attractive financing opportunities, Drillisch AG has adequate flexibility to expand or supplement its business activities as expedient.

Excellent balance sheet ratios translate into outstanding readiness for the future
The balance sheet total declined over the course of the first 9 months of 2014 by EUR39.9 million to EUR312.4 million (31/12/2013: EUR352.3m). Equity declined as a consequence of the dividend disbursement of EUR76.8 million, balanced against the good consolidated profit, by a total of EUR38.1 million to EUR179.5 million (31/12/2013: EUR217.6m). This leads to an equity ratio of 57.5% (31/12/2013: 61.8%).

Positive development continues on a quarterly basis
On a quarterly basis, service revenue rose by EUR2.0 million (2.9%) to EUR70.2 million (Q3 2013: EUR68.2m).

Gross profit in Q3 amounted to EUR37.3 million. This is an increase of EUR6.2 million (20.1%) over Q3 2013 (Q3 2012: EUR31.0m). The gross profit margin amounts to 52.3% (Q3 2012: 43.8%).

The EBITDA increased to EUR22.2 million in Q3 2014, an increase of EUR4.2 million (23.4%) over Q3 2013 (EUR18.0m). The EBITDA margin improved by 5.8%-points from 25.4% to 31.2%.

EBITDA forecast
As appropriate to the continuing positive development of operating business, the Management Board expects an EBITDA for all of 2014 at the high end of the original forecast of between EUR82 million and EUR85 million and a further increase to EUR95 million to EUR100 million for 2015 (based on current status).

Dividend forecast 2014 and 2015
In observance of corporate policy aimed at sustainable development, a dividend of at least the same amount as that disbursed for fiscal year 2013 (EUR1.60 per voting share) will be sought for fiscal years 2014 and 2015. By setting this goal, we indicate our intention to involve our shareholders in the positive development of our business over the long term.

Provisional performance indicators of Drillisch Group for the first nine months of 2014

In EURm	30/09/2014	30/09/2013	Change in %
Service revenue	209.8	207.2	+1.2%
Gross profit	105.3	87.1	+20.8%
Gross profit margin in %	49.4%	40.0%
AGPPU average gross profit per user (MVNO) (blended)	6.49	6.12	+6.0%
EBITDA	64.6	52.1	+23.9%
EBITDA margin in %	30.3%	23.9%
Cash	160.5	52.7	+204.5%
Debenture bonds	88.1	0.0
Financial liabilities	0.0	0.0
CF from current business activities	53.2	31.1	+71.3%
FCF (CF less Capex)	50.6	12.0	+321.2%
Subscribers (millions)	2.021	1.855	+8.9%
thereof MVNO subscribers	1.869	1.648	+13.4%
thereof budget subscribers	1.118	0.733	+52.5%
thereof volume subscribers	0.751	0.915	-17.9%

Provisional performance indicators of Drillisch Group for Q3 2014

In EURm	Q3 2014	Q3 2013	Change in %	Q2 2014
Service revenue	70.2	68.2	+2.9%	69.5
Gross profit	37.3	31.0	+20.1%	35.1
Gross profit margin in %	52.3%	43.8%		49.8%
AGPPU average gross profit per user (MVNO) (blended)	6.59	6.40	+3.0%	6.49
EBITDA	22.2	18.0	+23.4%	21.8
EBITDA margin in %	31.2%	25.4%		31.0%

You can view the complete 9-month report by clicking on the following link from 14 November
http://www.drillisch.de/investor-relations/reports

Maintal, 13 November 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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