Corporate | 9 May 2007 07:35
United Internet AG / Quarter Results
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Successful start to FY2007 for United Internet
Montabaur, May 9, 2007. United Internet can look back on a highly
successful start to its fiscal year 2007. Compared with the same period
last year, there was once again strong growth in all relevant financial
ratios and customer figures.
In addition to strong organic growth, the financial figures are influenced
by the sale and deconsolidation of the United Internet Group subsidiary
twenty4help Knowledge Service AG. The sale resulted in extraordinary income
of around EUR 65.8 million, which is disclosed in the figures for the first
quarter of 2007 as Discontinued Operations in accordance with IFRS 5. Also
in accordance with IFRS 5, the following prior-year figures of the income
statement have been adjusted.
In the first quarter of 2007, consolidated sales revenues of the United
Internet Group grew by 29.4% to EUR 336.9 million (prior year: EUR 260.4
million). Earnings before interest, taxes, depreciation and amortization
(EBITDA) grew by 24.8% to EUR 63.4 million (prior year: EUR 50.8 million).
Earnings before taxes (EBT) from continued operations were increased by
27.8% to EUR 50.1 million (prior year: EUR 39.2 million). Despite increased
costs for the penetration of new business fields, the EBT margin thus
amounted to around 15%. Earnings per share reached EUR 0.41 (split-adjusted
prior-year figure: EUR 0.10) – of which EUR 0.28 (prior year: EUR 0.01)
resulted from discontinued operations.
'We are very satisfied with the development of business,' says Ralph
Dommermuth, CEO of United Internet AG.
The dynamic growth in the company’s Product segment continues to be rooted
in the stabile increase of fee-based customer contracts. Compared with
March 31, 2006, the number of paid customer contracts was raised by 1.33
million to 6.63 million, with strong growth in all product lines.
'In the field of Information Management, the number of contracts increased
by 110,000 to 1.12 million,' says Ralph Dommermuth.
'In our webhosting business we made solid progress in Germany and abroad,
with year-on-year growth in contracts of 750,000 to 3.00 million. Whereas
we added 90,000 new contracts in Germany to reach 1.63 million, the number
of contracts with foreign customers grew by 660,000 to 1.37 million,'
explains Dommermuth.
'In our DSL business, we achieved year-on-year growth of 520,000 to 2.36
million customer contracts. In addition to the acquisition of new customers
and the launch of our new all-inclusive package 4DSL, the main focus in
this product line was placed on raising customer loyalty and expanding
business with our existing client base. Compared with March 31, 2006, we
were able to increase the number of telephony customers by 670,000 to 1.37
million. At the same time, the number of telephone minutes completed per
month grew from 480 million to 780 million. We also boosted the number of
our own DSL access customers compared to prior-year figures by 740,000 to
1.97 million. This means that 83.5% (prior year: 66.8%) of our DSL access
customers receive both their internet access and DSL connection from us.
58.1% (prior year: 38.0%) of our DSL access customers also use our
telephony product in addition to pure internet access,' states Dommermuth.
In total, United Internet’s Product segment – with its core brands GMX,
WEB.DE, 1&1, InterNetX and Fasthosts – achieved year-on-year growth in
sales of 30.7% to EUR 287.5 million, while EBT rose by 26.6% to EUR 44.7
million.
In the Online Marketing segment, United Internet’s brands AdLINK, affilinet
and Sedo benefited from the ongoing positive development of the online
advertising market. Compared with the same period last year, sales in this
segment grew by 21.8%, from EUR 40.4 million to EUR 49.2 million. EBT
improved by 16.7%, from EUR 4.8 million to EUR 5.6 million.
'We are also optimistic for the rest of the current fiscal year: 4DSL is
enjoying good market demand, our international expansion in Webhosting is
making good progress, all lights are set to green in online advertising
amid continued market growth and the roll-out of new business fields in
Germany and abroad is in full swing,' forecasts Dommermuth.
With 6.63 million customer contracts, United Internet AG is a leading
Internet Service Provider (ISP). In its 'Product' segment, the Group’s
value-added internet services and fast internet connections are directed at
private users, small/home offices (SoHos) and small to mid-size enterprises
(SMEs). These groups are served by the brands GMX, WEB.DE, 1&1, InterNetX
and Fasthosts. In addition to its 'Product' business, the Group is also
engaged in 'Online Marketing' (via the brands AdLINK, affilinet and Sedo).
DGAP 09.05.2007
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Language: English
Issuer: United Internet AG
Elgendorfer Straße 57
56410 Montabaur Deutschland
Phone: +49 (0)260 296-1631
Fax: +49 (0)260 296-1013
E-mail: Investor-Relations@United-Internet.de
www: www.United-Internet.de
ISIN: DE0005089031
WKN: 508903
Indices: TecDAX
Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin-Bremen, Stuttgart, München, Hamburg, Düsseldorf
End of News DGAP News-Service
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