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1&1 Drillisch AG — a Successful First Half of 2020
1&1 Drillisch
13.08.2020

1&1 Drillisch AG — a Successful First Half of 2020

  • Customer contracts: +240,000 to 14.57 million

  • Revenues: +4.1 % to €1,881.2 million

  • Service revenues: +3.1 % to €1,497.0 million

  • EBITDA: €329.6 million compared to €340.4 million in the previous year; comparable EBITDA: +4.0 %

  • Earnings per share (EPS): +3.5 % to €1.05

  • Outlook 2020: ca. + 4 % revenue (+2 % - 3 % service revenue), EBITDA at around last year’s level

     

     

    Maintal, 13 August 2020 — In comparison with 31 December 2019, 1&1 Drillisch AG (ISIN DE 0005545503) was able to increase the number of customer contracts across all customer groups by 240,000 to 14.57 million contracts in the first half of 2020. It was possible to acquire 250,000 mobile internet contracts, raising the number of contracts to 10.24 million. Broadband lines declined slightly by 10,000 DSL contracts to 4.33 million. In comparison with 30 June 2019, the number of customer contracts increased by a total of 650,000 (4.7 percent).


    Revenues rose by 4.1 percent to €1,881.2 million in HY1 2020 (HY1 2019: €1,806.3 million). The high-margin service revenues increased by 3.1 percent to €1,497.0 million (HY1 2019: €1,451.8 million). This figure takes into account negative revenue effects of €-4.6 million (in particular the lack of international roaming revenues) that are a consequence of the coronavirus pandemic and the temporary restrictions on our customers’ travel opportunities. Precluding this negative effect, service revenues would have increased by 3.4 percent.


    Earnings before interest, taxes, depreciation and amortisation (EBITDA) in HY1 2020 at €329.6 million remained lower than in the previous year (HY1 2019: €340.4 million). This decline resulted above all from regulatory effects in the form of the subscriber line price increases (since 1 July 2019) of about €-8.2 million and the increased expenses from the EU regulatory decision regarding text messages costs (since 15 May 2019) of about €-5.5 million (HY1 2019: €-1.0 million). Costs in the amount of €-5.6 million (HY1 2019: €-1.9 million) were incurred for the planning and preparation of our 5G wireless network. In addition, earnings were reduced by around €-10.2 € million because of the temporary change in use behaviours of our customers as a consequence of the coronavirus pandemic. Precluding all of aforementioned effects, comparable EBITDA would have grown by 4.0 percent.


    Free cash flow increased significantly by €117.3 million from €62.1 million in the previous year to €179.4 million in HY1 2020. At this time, 1&1 Drillisch has at its disposal about €406 million in freely available cash.


    Outlook

    The Company expects further customer growth for the year 2020 as a whole. As announced in the ad hoc disclosure on August 11, 2020, the company expects sales growth of approximately 4 percent from previous year EUR 3,674.9 million (service revenues: +2 - 3 percent, previous year EUR 2,943.0 million) for the full year 2020. EBITDA is still expected on a par with the previous year (EUR 683.5 million). This forecast is subject to uncertainties as an exact assessment of the duration and further impact of the coronavirus pandemic is not currently possible.

 

The semi-annual report will be made available on the Company’s home page on 13 August 2020.
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.

 

1&1 Drillisch Aktiengesellschaft: Expert intends to declare price increase by Telefónica to be unjustified
1&1 Drillisch
27.05.2020

1&1 Drillisch Aktiengesellschaft: Expert intends to declare price increase by Telefónica to be unjustified

GAP-News: 1&1 Drillisch Aktiengesellschaft / Key word(s): Miscellaneous
27.05.2020 / 20:06
The issuer is solely responsible for the content of this announcement.

PRESS RELEASE

Expert intends to declare price increase by Telefónica to be unjustified

Maintal, 27 May 2020. Today, 1&1 Drillisch has received the draft expert opinion in the proceedings to review a price increase implemented by Telefónica. Telefónica had increased the advance service prices under the MBA MVNO agreement in December 2018 retroactively by around EUR 64 million with reference to the 2015 frequency auction.

 

1&1 Drillisch has rejected this price increase as unjustified. In his draft expert opinion, the expert has now announced that the price increase is entirely unjustified. Accordingly, the price increase is without effect and does not result in any payments by 1&1 Drillisch.

The parties may comment on the draft expert opinion. The final expert opinion is expected by the middle of the year. This will conclude these proceedings and no expert proceedings initiated by Telefónica will be pending anymore.

 

With regard to the MBA MVNO agreement, the Price Reviews 2 and 5 which were initiated by 1&1 Drillisch and the request for arbitration against the result of Price Review 1 are still ongoing. In these proceedings, 1&1 Drillisch is seeking substantial retroactive price reductions. Price increases are excluded.

 


About 1&1 Drillisch
1&1 Drillisch AG is a listed telecommunications provider based in Maintal. The company belongs to the United Internet AG group and is one of the largest telecommunications providers with more than 14 million customer contracts.
As the only virtual network operator in Germany 1&1 Drillisch has secure long-term access to the Telefónica network via an MBA MVNO contract. 1&1 Drillisch offers its customers a comprehensive portfolio of services and products in the areas of broadband and mobile communications. In addition to pure mobile communications and DSL products, customers also receive attractive bundled products from mobile communications and fixed networks, supplemented by applications such as home networking, online storage, video-on-demand and IPTV TV. With its diversely positioned brands, 1&1 Drillisch has a strong marketing approach that addresses the market comprehensively and target-group specifically: While 1&1 covers the premium segment, the online brands under the umbrella of Drillisch Online GmbH such as smartmobil.de, yourfone, winSIM, DeutschlandSIM or simply appeal to a price-conscious target group.

1&1 Drillisch Good Start to the Year
1&1 Drillisch
13.05.2020

1&1 Drillisch Good Start to the Year

- Customer contracts: +100,000 to 14.43 million

- Revenues: +4.2 percent to €940.7 million

- Service revenues: +3.7 percent to €747.8 million

- EBITDA: €164.0 million compared to €168.5 million in the previous year; comparable EBITDA: +4.3 percent

- Earnings per share: EUR 0.50 (unchanged from previous year, despite special effects)

- 2020 forecast confirmed

 

Maintal, 13 May 2020 - 1&1 Drillisch AG (ISIN DE 0005545503) was able to increase the number of customer contracts across all customer groups in comparison with 31 December 2019 by 100,000 to 14.43 million contracts in Q1 2020. In the mobile internet business, it was possible to acquire 110,000 customer contracts, raising the number of contracts to 10.10 million. Broadband lines declined slightly by 10,000 DSL contracts to 4.33 million.

 

Revenues rose by 4.2 percent to €940.7 million in Q1 2020 (Q1 2019: €902.5 million). The high-margin service revenues increased in Q1 by 3.7 percent to €747.8 million (Q1 2019: €720.8 million). The figure includes positive revenue effects of €+3.1 million that resulted from temporary changes in customer use patterns as a consequence of the coronavirus crisis (particularly in the area of telephony, including regulations for working from home and sheltering-in-place restrictions). Precluding this positive effect, service revenues would have increased by 3.3 percent.

 

Earnings before interest, taxes, depreciation and amortisation (EBITDA) in Q1 2020 at €164.0 million declined over the previous year (Q1 2019: €168.5 million). This decline is due to one-offs from integration projects and initial costs for the establishment of the 5G network as well as negative effects from regulatory decisions and the temporary change in usage behaviour as a consequence of the coronavirus crisis. These effects had an overall negative impact of €-14.9 million (Q1 2019: €-3.1 million) on the key earnings indicators. Precluding the aforementioned effects, comparable EBITDA would have risen by 4.3 percent.

 

Free cash flow increased significantly by €82.8 million from €14.7 million in the previous year to €97.5 million in Q1 2020. At this time, 1&1 Drillisch has about €330 million free available cash.

 

Outlook

The Company expects further customer growth for the year 2020 as a whole. As a consequence of the uncertainties in the overall economic framework conditions resulting from the coronavirus crisis, the Company confirms its forecast and expects revenues and EBITDA to remain unchanged at approximately the same level as last year. This forecast is subject to uncertainties as it is not possible at present to make an exact assessment of the duration and effects of the coronavirus crisis. 1&1 Drillisch will analyse the impact of the crisis on business development in the coming weeks and months and is planning a more specific update of the forecast as part of the semi-annual report 2020.

 

Performance indicators pursuant to IFRS - comparison Q1 2019 v. Q1 2020

in €mQ1 2019Q1 2020Change
Revenue902.5940.7+4.2 %
Service revenues720.8747.8+3.7 %
EBITDA168.5164.0-2.6 %
EBIT without PPA write-offs157.4154.2-2.1 %
EBIT128.8126.4-1.9 %
Profit per share in € excluding PPA write-offs0.620.61-1.0 %
Profit per share in €0.500.50 
Customer contracts in millions13.7214.43+5.2 %
of which mobile internet9.3710.10+7.8 %
of which broadband lines (VDSL, ADSL, FTTH)4.354.33-0.5 %

 

 

The intermediate report will be made available on the Company's home page on 13 May 2020.
https://www.1und1-drillisch.de/investor-relations/reports

Maintal, 13 May 2020

1&1 Drillisch AG
The Management Board

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.

1&1 Drillisch: Request for arbitration will be filed against Telefónica to replace the expert opinion in Price Review 1
1&1 Drillisch
30.04.2020

1&1 Drillisch: Request for arbitration will be filed against Telefónica to replace the expert opinion in Price Review 1

Maintal, 30 April 2020. Drillisch Online GmbH, a subsidiary of 1&1 Drillisch AG, is filing a request for arbitration against Telefónica today, in order to reach a replacement of the expert opinion in Price Review 1, the first price adjustment procedure initiated by Drillisch. 1&1 Drillisch AG has had the arbitration report reviewed in detail by a renowned auditing company. The expert opinion contains serious methodological flaws and discrepancies as regards the content and must be replaced by a proper assessment of the need for a price adjustment.

 

In addition to the arbitration proceeding regarding Price Review 1, the Price Reviews 2 and 5 are ongoing, covering the entire period from September 2017. As a result of the new Price Review 5, Drillisch was able to withdraw the Price Reviews 3 and 4.


 

About 1&1 Drillisch AG
1&1 Drillisch AG is a listed telecommunications provider based in Maintal. The company is part of the United Internet AG group and is the only virtual network operator in Germany to have secured long-term access to the Telefónica network via an MBA MVNO contract. 1&1 Drillisch offers its customers a comprehensive portfolio of services and products in the broadband and mobile communications sectors. In addition to pure mobile communications and Broadband products, customers also receive attractive bundled products from mobile communications and fixed networks, supplemented by applications such as home networks, online storage, video-on-demand and IPTV TV. With its two wholly-owned subsidiaries 1&1 Telecommunication SE and Drillisch Online GmbH, 1&1 Drillisch has a strong marketing approach that addresses the market comprehensively and target-group specifically: While 1&1 covers the premium segment, the Group's established online brands under the umbrella of Drillisch Online GmbH such as smartmobil.de, yourfone, winSIM, DeutschlandSIM or simply appeal to a price-conscious target group.

1&1 Drillisch exercises first prolongation option under the MBA MVNO agreement
1&1 Drillisch
30.12.2019

1&1 Drillisch exercises first prolongation option under the MBA MVNO agreement

Maintal, 30 December 2019. As planned, Drillisch Online GmbH, a subsidiary of 1&1 Drillisch AG, today exercised the first prolongation option for the extension of the term of the MBA agreement with Telefónica Deutschland ending on 30 June 2020, as a result of which the term of the agreement has now been extended until at least 30 June 2025. Thereby, and in combination with another prolongation option, Drillisch Online GmbH secures long-term access to the mobile communications network of Telefónica. In addition, Drillisch continues to pursue the build-up of its own high-performance 5G mobile communications network. In order to ensure continuous availability for its end customers during the build-up of Drillisch's nationwide network, Drillisch currently, among others, is in negotiations for the conclusion of a national roaming agreement based on the commitments of Telefónica Deutschland in connection with the EU clearance decision in relation to the merger with E-Plus in 2014.

1&1 Drillisch AG: Final expert determination received in the first price adjustment procedure - Decision confirmed
1&1 Drillisch
19.12.2019

1&1 Drillisch AG: Final expert determination received in the first price adjustment procedure - Decision confirmed

Maintal, 19 December 2019. Today, 1&1 Drillisch has received the final expert determination in the first price adjustment procedure, which was initiated by 1&1 Drillisch with effect as of September 2017 (Price Review 1). Therein, the expert confirms the decision announced in the draft of the expert determination in October 2019. 1&1 Drillisch's application for the advance service prices to be reduced retroactively from September 2017 is rejected.

 

1&1 Drillisch believes the expert determination is wrong for various reasons and sees methodical mistakes and discrepancies in content. 1&1 Drillisch is also of the opinion that essential characteristics of the MBA model, which was introduced in the context of the merger clearance of the E-Plus takeover, have not been adequately considered. This includes in particular the special privileges of the MBA MVNO. In the interests of its shareholders, 1&1 Drillisch will consider its legal options.
 

1&1 Drillisch leases spectrum to build its own 5G network
1&1 Drillisch
18.12.2019

1&1 Drillisch leases spectrum to build its own 5G network

Maintal, 18 December 2019. As announced at the end of the 5G auction, 1&1 Drillisch AG will lease spectrum for the installation of its own 5G mobile network at Telefónica. This involves two frequency blocks of 10 MHz each in the 2.6 GHz band. Drillisch Online GmbH, a subsidiary of 1&1 Drillisch AG, and Telefónica Germany have now signed a respective contract. The agreement is based on a self-commitment by Telefónica as part of the EU antitrust approval of the merger with E-Plus in 2014. The two frequency blocks will be available to 1&1 Drillisch until 31 December 2025. The agreement is subject to the approval of the Federal Network Agency.

At the auction of spectrum in the 2 GHz and 3.6 GHz ranges, which ended in June 2019, 1&1 Drillisch acquired a total of two frequency blocks of 10 MHz in the 2 GHz band and five frequency blocks of 10 MHz in the 3.6 GHz band. While the 3.6 GHz spectrum is already available, the frequencies in the 2 GHz band will not be operational until 1 January 2026.

Ralph Dommermuth, CEO of 1&1 Drillisch AG:

"With this agreement, we are taking a further step on the way to setting up our own 5G network. The spectrum rented from Telefónica bridges the period until our own frequency blocks in the 2 GHz range can be used.“

1&1 Drillisch builds mobile radio sites in rural areas - Contract signed with federal ministries
1&1 Drillisch
06.09.2019

1&1 Drillisch builds mobile radio sites in rural areas - Contract signed with federal ministries

Maintal, September 06, 2019. 1&1 Drillisch concluded an agreement with the Federal Ministry of Transport and Digital Infrastructure (BMVI) and the Federal Ministry of Finance (BMF) on the construction of mobile radio sites in so-called "white spots". The company is thus helping to close existing supply gaps, especially in rural areas.

With the construction of hundreds of antenna sites, 1&1 Drillisch is making a contribution to improving mobile communications coverage in rural regions. At the same time, 1&1 Drillisch benefits from the agreement on installment payments for the costs of the recently acquired 5G frequencies.

"With the construction of additional mobile communications sites, we are contributing to nationwide mobile communications coverage and making a contribution to ensuring that rural areas in particular are supplied with state-of-the-art technology. We very much welcome the fact that this expansion is taking place in cooperation with the three other network operators. This is a first step that impressively demonstrates the benefits of cooperation for consumers and network operators. Cooperation in mobile communications infrastructure will become even more important in the coming years, because no network operator will be able to build a high-performance 5G network for the whole of Germany alone," says Ralph Dommermuth, CEO of 1&1 Drillisch AG. "By signing the contract with the federal government, we are underscoring our common goal of making Germany a lead market for 5G. At the
same time, the agreement fits in with our long-term financing strategy, which provides for the majority of the expenses for the construction of a modern 5G network to be met from current income," Dommermuth continued.
 

Shareholders support strategy of 1&1 Drillisch - 99 percent for investments instead of dividends
1&1 Drillisch
21.05.2019

Shareholders support strategy of 1&1 Drillisch - 99 percent for investments instead of dividends

Maintal, 21 May 2019. The shareholders of 1&1 Drillisch AG support the strategy of the company's Management Board and Supervisory Board with an overwhelming majority. At today's Annual General Meeting of 1&1 Drillisch in Frankfurt, 99.6 percent of the votes cast approved the proposal to pay only the statutory minimum dividend of EUR 0.05 per share for the 2018 financial year (Section 254 (1) AktG) and thus to leave almost the entire profit in the company so that 1&1 Drillisch can invest in a modern 5G network. Based on 176.2 million dividend-bearing shares, the total dividend payout for the 2018 financial year is EUR 8.8 million (2017 financial year: EUR 282.8 million).

 

In addition to the 2018 financial year - the most successful in the history of 1&1 Drillisch - the Annual General Meeting also focused on plans to build up the company's own 5G network. The decision to pay only the statutory minimum dividend is intended to ensure that the high investments can be made if 1&1 Drillisch successfully buys spectrum until the end of the ongoing 5G frequency auction.

 

"The clear outcome of the vote on our dividend proposal is a clear commitment to building a modern 5G mobile communications network," commented Ralph Dommermuth, CEO of 1&1 Drillisch AG. " I am pleased that our shareholders support the strategy so clearly. Our goal is to create more long-term value for our shareholders, customers and employees by transforming into the fourth network operator."

1&1 Drillisch AG - Successful Start to the Year
1&1 Drillisch
15.05.2019

1&1 Drillisch AG - Successful Start to the Year

- Number of customer contracts rises by 180,000 to 13.72 million

- Service revenues increase by 3.5% to EUR730.4 million, adjusted increase 4.8%

- EBITDA grows by 1.8% to EUR168.5 million, adjusted increase 9.7%

- Confirmation of forecast 2019

 

Maintal, 15 May 2019 - 1&1 Drillisch AG (ISIN DE 0005545503) continued on its course in the first quarter of 2019. The Company was able to increase further the number of customers, the revenues and the operating profit figures.

 

In comparison with Q4 2018, the number of customer contracts across all customer groups increased by 180,000 to 13.72 million contracts (Q4 2018: 13.54 million). In the mobile internet business, an additional 170,000 customer contracts were acquired, increasing the number of contracts to 9.37 million (Q4 2018: 9.20 million). Broadband lines added 10,000 contracts and rose to 4.35 million (Q4 2018: 4.34 million).

 

During Q1 2019, total revenues rose in comparison with Q1 2018 by 0.9% from EUR904.3 million to EUR912.1 million. The high-margin service revenues increased as planned by 3.5% to EUR730.4 million (Q1 2018: EUR705.7 million). These earnings are the subject of our primary focus because they are sustainable and the determining factor for our profit.

 

On the other hand, the low-margin Other sales - essentially from the realisation of hardware sales brought forward (in particular from investments in smartphones that will be reimbursed by the customers over the minimum contract term in the form of higher package prices) - declined by EUR16.9 million from EUR198.6 million in the previous year to EUR181.7 million in Q1 2019. Hardware sales were below expectations of the company, but this business fluctuates according to season and is dependent on the attractiveness of new devices and the model cycles of the hardware manufacturers. This effect may therefore reverse in the coming quarters. Even if this should not happen, however, there will be no considerable impact on our EBITDA development.

 

Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 1.8% from EUR165.5 million to EUR168.5 million. This includes positive effects from the first-time application of IFRS 16 regulations in the amount of EUR1.1 million as well as one-time effects from expenses in connection with integration projects in the amount of EUR -2.1 million (previous year: EUR -5.0 million). The only slight increase is mainly due to the fact that the time-limited adjustment mechanism of an advance price agreement was not extended again but expired at the end of 2018. This temporarily led to additional costs in the amount of about EUR17.5 million during Q1 2019. Contrary original expectations of 1&1 Drillisch, no decision has yet been taken regarding a replacement or compensation for the expired arrangement. However, the corresponding wholesale prices are the subject of arbitration proceedings, in the course of which there will be a binding expert decision on the type and amount of sustainable price adjustment within a few months of the end of the 5G spectrum auction. From this decision of the assessor, the management expects retroactively lower advanced prices.

 

Consolidated EBIT (earnings before interest and taxes) rose by 1.4% from EUR127.0 million to EUR128.8 million.

 

Ralph Dommermuth, CEO of 1&1 Drillisch, summarizes the first quarter's performance: "Our most important performance indicators developed well during Q1 2019. High-margin service revenue increased by 3.5% year-on-year. Adjusted for the effects of the changed capacity split with a focus on Telefónica wholesale services, the increase even amounted to 4.8%. EBITDA adjusted for IFRS 16 effects, one-offs for integration projects and the absence of a price adjustment mechanism increased by 9.7%."

 

Performance indicators pursuant to IFRS - comparison Q1 2018 v Q1 2019

 

in EURmQ1 2018Q1 2019Change
Revenues904.3912.1+ 0.9%
Service revenues705.7730.4+ 3.5%
Adjusted Service revenues excluding effects from
changed capacity split with focus on mobile contracts on the basis of Telefónica-wholesale services

706.9

740.6

+ 4.8%
EBITDA165.5168.5+ 1.8%
Adjusted EBITDA excluding effects from IFRS 16, one-offs from integration projects and the discontinuation of the temporary price adjustment mechanism of a prepayment agreement
170.5

187.0

+ 9.7%
EBIT excluding ppa write-offs155.6157.4+ 1.2%
EBIT127.0128.8+ 1.4%
Profit per share in EUR excluding ppa write-offs0.590.62+ 4.6%
Profit per share in EUR0.480.50+ 5.0%
Customer contracts in current product lines (million)12.8413.72+ 6.9%
of which mobile internet8.549.37+ 9.7%
of which broadband (VDSL, ADSL, FTTH)4.304.35+ 1.2%

 

1&1 Drillisch substantiates its forecast for the 2019 financial year to the effect that high-margin service revenues should continue to grow by around 4% (2018: EUR2,882.3 million) while the further development of low-margin hardware sales remains to be seen. The company expects EBITDA to continue to grow by approximately 10% (2018: EUR721.9 million). Also unchanged, 1&1 Drillisch plans to further substantiate its EBITDA forecast after completion of the aforementioned expert opinion process.

 

The interim report will become available on the Company's home page on 15 May 2019.
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.


 

1&1 Drillisch AG: Dividend proposal in the case of ongoing 5G spectrum auction
1&1 Drillisch
07.05.2019

1&1 Drillisch AG: Dividend proposal in the case of ongoing 5G spectrum auction

Maintal, May 7, 2019. On March 27, 2019, 1&1 Drillisch AG announced that the company's Management Board and Supervisory Board would make a dividend proposal at the Annual Shareholders' Meeting on May 21, 2019 that took into account the outcome of the current auction on the allocation of mobile frequencies in the 2 GHz and 3.6 GHz bands ("5G spectrum auction"). Accordingly, a dividend of EUR 0.05 per share was proposed for the case that 1&1 Drillisch successfully acquired spectrum at the auction by May 20, 2019.

 

Due to the historically long time the 5G spectrum auction has already lasted, it is currently unclear when the auction will end. It is therefore also unclear if it will be known by the originally planned deadline (May 20, 2019) whether 1&1 Drillisch has acquired spectrum at the auction.

 

In order to ensure that the necessary additional investments can also be made in the event of a successful acquisition of spectrum at the auction after this date, the triggering event for the dividend proposal of EUR 0.05 should no longer only be the actual acquisition of spectrum at the auction by May 20, 2019, but also the event that no spectrum has yet been acquired at the auction, but that this is still possible.

 

If it is not known for certain on May 20, 2019 that 1&1 Drillisch will not acquire frequencies in the course of the 5G spectrum auction, the Management Board and Supervisory Board plan to decide a dividend proposal of EUR 0.05 per share for the Annual Shareholders' Meeting.

1&1 Drillisch expects expert opinion
1&1 Drillisch
07.01.2019

1&1 Drillisch expects expert opinion

Maintal, January 07, 2019 - In its interim statement for the first nine months of 2018 published on November 13, 2018, 1&1 Drillisch AG (ISIN DE 0005545503) reported that it expected the imminent conclusion of price adjustment negotiations with a pre-service provider that had been in progress for recent months.

 

In the meantime, 1&1 Drillisch assumes that a retrospective expert decision will be taken with regard to the aforementioned price adjustment. Depending on the timing of this expert decision, the positive impact on earnings expected by 1&1 Drillisch could still be booked in fiscal year 2018 or not until fiscal year 2019.


Disclaimer: This press release contains future-oriented statements that are based on current assumptions and forecasts of the 1&1 Drillisch AG Management Board. Due to known and unknown risks, uncertainties and other factors, the actual development - and especially the earnings, financial position and operations of our Company - may differ significantly from the forward-looking statements made in this press release. The Company assumes no obligation to update such forward-looking statements or to adjust them to future events or developments.

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

1&1 Drillisch AG - Success in HY1 2018
1&1 Drillisch
13.08.2018

1&1 Drillisch AG - Success in HY1 2018

- Number of customer contracts rises by 470,000 to 13.11 million

- Revenue per IFRS 15 rises by 42.5% to EUR1,819bn (pro forma +14.5%)

- EBITDA per IFRS 15 rises by 61.9% to EUR340.1m (pro forma + 20.4%)

- Revenue and profit forecast 2018 confirmed; approx. 1 million new customers expected

 

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

 

During HY1 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 in the current product lines rose by 470,000 to 13.11 million contracts (31/12/2017: 12.64 million) during the first six months. In the mobile internet sector, there was a gain of 430,000 customer contracts, raising the number of contracts to 8.73 million (31/12/2017: 8.30 million). DSL lines increased by 40,000 to 4.38 million (31/12/2017: 4.34 million). In comparison with the closing date of the previous year, the number of customer contracts - including the Drillisch customers per 30/06/2017 - rose by 990,000 (8.2%).

 

In comparison with the same period of the previous year, the revenue and profit figures of HY1 2018 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 (EUR153.8 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 HY1 2018 rose in comparison with HY1 2017 by 42.5% from EUR1.276 billion (previous accounting in accordance with IAS 18) to EUR1.819 billion (accounting in accordance with IFRS 15). From the pro forma perspective (with the inclusion of Drillisch in the previous year), revenue rose by 14.5% from EUR1.588 billion (previous accounting in accordance with IAS 18) to EUR1.819 billion (accounting in accordance with IFRS 15).

 

Disclosed earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 61.9% from EUR210.1 million (previous accounting in accordance with IAS 18) to EUR340.1 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 20.4% from EUR282.4 million (previous accounting in accordance with IAS 18) to EUR340.1 million (accounting in accordance with IFRS 15). The initially positive effects from the changeover to IFRS 15 contained in this figure totalling EUR158.3 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 HY1 2018 contains realised synergies in the amount of about EUR15.6 million and one-off expenditures from ongoing integration projects in the amount of EUR7.7 million.

 

Consolidated EBIT (earnings before interest and taxes) rose by 30.0% from EUR202.0 million (previous accounting in accordance with IAS 18) to EUR262.7 million (accounting in accordance with IFRS 15). From the pro forma perspective (with the inclusion of Drillisch in the previous year), the EBIT rose by 7.4% from EUR244.5 million (previous accounting in accordance with IAS 18) to EUR262.7 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.

 

Ralph Dommermuth, CEO of 1&1 Drillisch, summarised the outlook for 2018: "Our revenue and profit figures developed well during HY1 2018. We can confirm our financial forecasts for the year 2018 as a whole and still expect revenues of about EUR3.7 billion and an EBITDA of about EUR750 million. Regarding the customer contracts we assume that the achieved growth of approximately 500 thousand contracts per half year following the business combination of 1&1 and Drillisch will continue. Therefore we expect an overall growth of approximately one million contracts to approximately 13.64 million contracts in 2018. We have decided not to participate in the fiercer price competition in the mobile-discount-segment since May 2018 and consequently not to further increase the sales performance this year."

 

Performance Indicators Pursuant to IFRS - Comparison HY1 2018 v. HY1 2017

in EURmHY1 2018
(IFRS 15)
HY1 2017
(IAS 18)
ChangeHY1 2017
Pro forma*
(IAS 18)
Change
Revenue1,819.01,276.5+42.5%1,587.8+14.5%
EBITDA340.1210.1+61.9%282.4+20.4%
EBITDA margin in %18.7%16.5% 17.8% 
EBIT262.7202.0+30.0%244.5+7.4%
EBIT margin in %14.4%15.8% 15.4% 
Profit/loss per share in euros1.011.36**-25.4%1.04-2.9%
Profit per share in EUR without PPA write-offs1.241.36**-9.1%1.04+19.2%
      
Customer contracts in current product lines (million)13.118.88+4.2312.12+0.99
thereof mobile internet8.734.57+4.167.81+0.92
thereof DSL/VDSL4.384.31+0.074.31+0.07

 

*Pro forma perspective: inclusion of Drillisch

**Without the positive special effects from the sale of Versatel Group

The interim report will become available on the Company's home page on 13 August 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.

1&1 Drillisch AG - Successful Start to the Year
1&1 Drillisch
09.05.2018

1&1 Drillisch AG - Successful Start to the Year

- Number of customer contracts rises by 270,000 to 12.91 million

- Revenues (IFRS 15) rise by 44.9% to EUR904.3 million (pro forma +16.4%)

- EBITDA (IFRS 15) grows by 55.1% to EUR165.5 million (pro forma +16.7%)

- Forecast 2018 confirmed

 

Maintal, 09 May 2018 - 1&1 Drillisch AG (ISIN DE 0005545503) continued on its course of growth in the first quarter of 2018. The Company was able to increase further the number of customers, the revenues and the operating profit figures.

 

In comparison with Q4 2017, the number of customer contracts in the current product lines across all customer groups rose by 270,000 to 12.91 million subscribers (Q4 2017: 12.64 million). In the mobile internet business, an additional 240,000 customer contracts were acquired, increasing the number of contracts to 8.54 million (Q4 2017: 8.30 million). DSL full-service bundles (ULL = unbundled local loop) rose by 30,000 contracts to 4.37 million (Q4 2017: 4.34 million).

 

The Q1 2018 figures for revenues and profits have been strongly influenced by the initial consolidation of Drillisch and the positive changeover effects from the first-time application in the accounting of IFRS 15. The contrary development is seen in the expected lowering of profit from higher contract growth and the increased use of smartphones among new and current customers (no or only a low one-time payment by customers when concluding contracts and returns from higher rate plan prices over the terms of the contracts). IFRS 15 has positive effects on revenue (EUR79.8 million) while for the profit figures the IFRS 15 effects and the expenditures for the increased use of smartphones virtually cancel each other out.

 

During Q1 2018, revenue rose in comparison with Q1 2017 by 44.9% from EUR624.2 million (previous accounting in accordance with IAS 18) to EUR904.3 million (accounting in accordance with IFRS 15). From the pro forma perspective (with the inclusion of Drillisch in the previous year), revenue rose by 16.4% from EUR777.1 million (previous accounting in accordance with IAS 18) to EUR904.3 million (accounting in accordance with IFRS 15).

 

Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 55.1% from EUR106.7 million (previous accounting in accordance with IAS 18) to EUR165.5 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 16.7% from EUR141.8 million (previous accounting in accordance with IAS 18) to EUR165.5 million (accounting in accordance with IFRS 15). The EBITDA of Q1 2018 includes EUR5.0 million in one-off expenditures from ongoing integration projects.

 

The consolidated EBIT (earnings before interest and taxes) rose by 22.5% from EUR103.6 million (previous accounting in accordance with IAS 18) to EUR127.0 million (accounting in accordance with IFRS 15). From a pro forma perspective (with the inclusion of Drillisch from the previous year), the EBIT rose by 2.3% to EUR127.0 million. The one-offs mentioned above are also included in the EBIT. The lower percentage growth in comparison with the EBITDA results from the increased write-downs on purchase price allocations (so-called PPA write-downs) from the takeover of Drillisch in 2017.

 

Ralph Dommermuth, CEO of 1&1 Drillisch, summarised the outlook for 2018: "Our most important performance indicators developed well in Q1 2018. We can confirm our forecast for the year 2018 as a whole. We continue to expect about 1.2 million new customer contracts, revenues of about EUR3.7 billion and an EBITDA of about EUR750 million."

 

Performance indicators pursuant to IFRS - comparison Q1 2018 v. Q1 2017

 

In EURmQ1 2018
(IFRS 15)
Q1 2017
(IAS 18)
ChangeQ1 2017
Pro forma*
(IAS 18)
Change
Revenue904.3624.2+44.9%777.1+16.4%
EBITDA165.5106.7+55.1%141.8+16.7%
EBITDA margin in %18.3%17.1% 18.3% 
EBIT127.0103.6+22.5%124.2+2.3%
EBIT margin in %14.0%16.6% 16.0% 
Profit/loss per share in euros0.480.60-19.9%0.47+2.1%
      
Customer contracts in current product lines (million)12.918.72+4.1911.79+1.12
      
thereof mobile internet8.544.45+4.097.52+1.02
thereof DSL/VDSL4.374.27+0.104.27+0.10

 

*Pro forma perspective: With inclusion of Drillisch

The interim report will become available on the Company's home page on 9 May 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.

Drillisch Turns into "1&1 Drillisch"
1&1 Drillisch
12.01.2018

Drillisch Turns into "1&1 Drillisch"

Maintal, 12 January 2018. Drillisch AG will bear a new name in future: "1&1 Drillisch AG". The Company's shareholders adopted a resolution to this effect at today's extraordinary general meeting by a virtually unanimous vote. The motion made by Drillisch AG's Management and Supervisory Boards for this amendment of the company charter passed with a majority of 99.99%.

 

Ralph Dommermuth, CEO of the new 1&1 Drillisch AG: "Recent months have seen our merger of 1&1 Telecommunication SE with Drillisch, creating a powerful provider of the full range of telecommunications services. By combining the two names into the future brand of our parent company, we want to demonstrate to everyone, both inside and outside of the Company, that the two enterprises are now one unit. The brand names of our Company's products are not affected by the renaming and will continue to operate as before under the same names."

 

The stock exchange symbol DRI and the WKN 554550 will not change.

You will find additional information about the resolutions adopted by the extraordinary general meeting at https://www.drillisch.de/investor-relations/aoHV2018.

Drillisch AG: Management Board Member Contract with Mr. Driesen Prematurely Extended
1&1 Drillisch
14.12.2017

Drillisch AG: Management Board Member Contract with Mr. Driesen Prematurely Extended

Maintal, December 14, 2017. The Drillisch AG supervisory board extended the appointment of Mr. André Driesen and his employment contract prematurely until March 31, 2021. Mr. Driesen has served as the management board member responsible for finance at Drillisch AG since April 1, 2015, in which role he was closely involved in the recent acquisition of 1&1 Telecommunication SE by Drillisch AG, thus helping to set the course for the creation of a strong fourth player on the German telecommunications market.

 

"For us, this is an important signal of continuity and stability, especially as Drillisch AG and 1&1 Telecommunication SE grow together", explained chairman of the supervisory board Michael Scheeren. "The Drillisch AG supervisory board is delighted to be able to continue the extremely successful and trusting cooperation with Mr. Driesen."

 

Drillisch AG: Change in the supervisory board
1&1 Drillisch
22.11.2017

Drillisch AG: Change in the supervisory board

Maintal, November 22, 2017. The two supervisory board members Mr. Marc Brucherseifer and Dr.-Ing. Horst Lennertz are withdrawing from the supervisory board of Drillisch AG with effect from the end of December 31, 2017. Mr. Vlasios Choulidis, who will leave the management board of Drillisch AG at the end of 2017, is to join the supervisory board of Drillisch AG based on a proposal by United Internet AG. His change to the supervisory board had already been envisaged by Drillisch AG and United Internet AG in the Business Combination Agreement dated May 12, 2017.

 

As one of the founding shareholders, Mr. Brucherseifer built the Drillisch group and significantly influenced and shaped the successful development of the group from 1985. Until 2005 he served as spokesman of the management board of Drillisch AG and during this time he laid the foundations for the group's further growth. In 2007 he joined the supervisory board of Drillisch AG on which he served as chairman from 2011 until November 2017. With great personal efforts and in close consultation with the management board he was able in this function to drive the group's development with his strength and determination. He was also closely involved in the recent acquisition of 1&1 Telecommunication SE by Drillisch AG, thus paving the way towards creating a strong fourth player on the German telecommunications market.

 

Dr. Lennertz is considered one of the pioneers in the area of mobile telecommunications in Germany. After having held various executive roles in the industry, he built, while serving as a member of the management board of PreussenElektra AG (now: E.ON Energie AG) from 1987 until 1993, the telecommunications segment, established several telecommunications companies and was entrusted with managing the E-Plus consortium. From 1993 onwards he served as a member of the management of E-Plus Mobilfunk GmbH, of which he was one the co-founders, and from 2001 until 2005 as a member on the management board of KPN Mobile N.V., before he joined the supervisory board of Drillisch AG in December 2005. While serving on the supervisory board, Dr. Lennertz played a key role over recent years in developing Drillisch AG towards becoming a strong fourth player on the German telecommunications market thanks to his extensive experience and expertise.

 

The entire supervisory board and the management board thank Mr. Brucherseifer and Dr. Lennertz for their many years of service and their commitment to Drillisch AG. "We are greatly indebted to Mr. Brucherseifer and Dr. Lennertz for their outstanding services for the company", emphasized Mr. Ralph Dommermuth, the chairman of the management board of United Internet AG and, in addition, new chairman of the management board of Drillisch AG as of January 1, 2018.

Drillisch AG: Change of supervisory board chairman following the closing of the overall transaction
1&1 Drillisch
13.11.2017

Drillisch AG: Change of supervisory board chairman following the closing of the overall transaction

Maintal, November 13, 2017. After completion of the step-by-step acquisition of 1&1 Telecommunication SE by Drillisch AG, the Drillisch AG supervisory board at its meeting today elected Mr. Michael Scheeren as its new chairman. This had already been agreed between the company and United Internet AG in the Business Combination Agreement of May 12, 2017 and set out in the Joint Opinion of the management board and the supervisory board under Section 27 of the German Securities Acquisition and Takeover Act and in the voluntary public tender offer submitted by United Internet AG.

 

Mr. Scheeren had earlier been appointed to the supervisory board of Drillisch AG under an order issued by the Hanau Local Court on October 16, 2017, and he has now taken over the chairmanship in the supervisory board of Drillisch AG from Mr. Marc Brucherseifer who served as chairman since 2011, in which role he was closely involved in the recent acquisition of 1&1 Telecommunication SE.

 

Mr. Kai-Uwe Ricke, who had also been appointed to the supervisory board under the order issued by the Hanau Local Court on October 16, 2017, was elected deputy chairman of the Drillisch AG supervisory board.

 

Press contact


Lisa Pleiß

Corporate Communications

Lisa Pleiß

+49 6181 412-620
+49 6181 412-183
presse@1und1-drillisch.de
Wolfgang Wölfle

Product Communications

Wolfgang Wölfle

+49 89 55270 335
+49 6181 412-183
presse@drillisch-online.de

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