Corporate | 10 May 2017 22:25

Drillisch AG: Good start in 2017 – EBITDA forecast confirmed

DGAP-News: Drillisch AG / Key word(s): Quarterly / Interim Statement

10.05.2017 / 22:25
The issuer is solely responsible for the content of this announcement.

Drillisch AG: Good start in 2017 – EBITDA forecast confirmed

Maintal, 10 May 2017 – Drillisch AG (ISIN DE 0005545503) has made a good start to the year 2017. The mobile services company, which is listed on the TecDax, posted further customer growth in the opening quarter, above all in the sector of the profitable budget subscribers. All major financial performance indicators displayed growth in comparison with the same quarter of the previous year. Following this good starting quarter, Drillisch AG confirms its forecast.

Growth in service revenue
Although operating on a market characterised by stiff competition, Drillisch increased service revenue by another EUR26.5 million (+21.3%) over the same period of the previous year to EUR151.1 million. This performance indicator of service revenue includes the customers in the Vodafone MVNO business as well as those with the legacy service providers.

The sheer MBA gross service revenue (i.e. including customer benefits) rose by EUR44.7 million (+49.5%) to EUR134.9 million (Q1 2016: EUR90.2 million). Adjusted for the customer benefits (= cost of sales), the MBA net service revenue rose by EUR33.0 million (+41.3%) to EUR112.8 million (Q1 2016: EUR79.9 million).

The decline in overall revenue by 11.8% to EUR152.9 million (Q1 2016: EUR173.4 million) is essentially a consequence of the restructuring of our subsidiary Phone House. The value of the previous year still included the earnings from the low-margin distribution business (the commission-based brokerage of network operator contracts, including the related hardware business), which has in the meantime been sold.

Subscriber growth
The driver of this overall good development of the subscriber base, which increased compared with the previous year by 818,000 subscribers (29.2%) to 3.615 million subscribers (Q1 2016: 2.797 million subscribers), was once again the growth in the budget subscriber segment. The number of subscribers in this segment rose by 968,000 (46.1%) to 3.068 million subscribers (Q1 2016: 2.100 million subscribers). The number of volume subscribers continued to fall as expected to 480,000 (Q1 2016: 612,000 subscribers), The total number of MVNO subscribers grew by 836,000 (30.8%) to 3.548 million subscribers (Q1 2016: 2.712 million subscribers). The number of LTE subscribers rose by 1.285 million (133.9%) over the previous year to 2.245 million subscribers (Q1 2016: 960,000). The average data consumption of these LTE subscribers rose in the year-on-year comparison by 53.2% to 945 MB a month (Q1 2016: 617 MB).

EBITDA growth
The EBITDA (earnings before interest, taxes, depreciation and amortisation) in Q1 2017 rose by EUR11.1 million (46.4%) to EUR35.1 million (Q1 2016: EUR24.0 million). We are laying our plans with the expectation of a steady increase of this performance indicator, a critical one for our business, in the coming quarters.

Consolidated profit clearly increased:
The good development of operating business is reflected in the consolidated profit as well. During the first quarter, Drillisch AG generated EUR19.7 million before taxes, 81.4% more than in the same period last year (Q1 2016: EUR10.9 million). The consolidated profit after taxes improved to EUR13.7 million (Q1 2016: EUR7.5 million).

Outlook
The Management Board expects a further increase in the MVNO customer base for 2017 that will lead to the parallel continuation of the positive corporate development. Our plans for fiscal year 2017 foresee an increase in the EBITDA to a figure between EUR160 million and EUR170 million (2016: EUR120.2 million).

Management and Supervisory Boards have submitted a dividend proposal for 2016 of EUR1.80 to the Annual General Meeting, which will take place on 18 May 2017. We want to ensure that shareholder benefit appropriately from the success of the Company in future as well.

Performance indicators pursuant to IFRS – comparison Q1 2017 v. Q1 2016

In EURm	Q1 2017	Q1 2016	in %
Revenue	152.9	173.4	-11.8%
Service revenue	151.1	124.6	+21.3%
MBA gross service revenue ¹	134.9	90.2	+49.5%
MBA net service revenue ²	112.8	79.9	+41.3%
MBA gross ARPU ³	14.54	14.31	+1.6%
MBA net ARPU ⁴	12.16	12.66	-4.0%
Gross profit	72.1	68.2	+5.7%
Gross profit margin in %	47.2%	39.3%
EBITDA	35.1	24.0	+46.4%
EBITDA margin in %	23.0%	13.8%
EBT	19.7	10.9	+81.4%
EBIT margin in %	12.9%	6.3%
Consolidated profit	13.7	7.5	+82.3%
Consolidated profit margin in %	9.0%	4.3%
				Net adds
				Q1 17 v. Q1 16	Q1 17 v. Q4 16
Subscribers, in millions	3.615	2.797	+29.2%	+818,000	+185,000
Thereof MVNO subscribers	3.548	2.712	+30.8%	+836,000	+189,000
Thereof budget subscribers	3.068	2.100	+46.1%	+968,000	+205,000
Thereof volume subscribers	0.480	0.612	-21.6%	-132,000	-16,000
¹ MBA service revenue in EURm, gross -> including customer benefits
² MBA service revenue in EURm, net -> after deduction of customer benefits
³ MBA ARPU, gross -> including customer benefits
⁴ MBA ARPU, net -> after deduction of customer benefits

The complete quarterly report will be made available on the Company’s home page on 11 May 2017.
http://www.drillisch.de/investor-relations/berichte

Maintal, 10 May 2017

Drillisch AG
The Management Board

Disclaimer: This report contains statements regarding the future which are based on the current assumptions and projections of the 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@drillisch.de

10.05.2017 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
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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:	Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange


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