1&1 Drillisch AG Company Profile and Outlook
1&1 Drillisch AG is a listed stock corporation and one of the large network-independent telecommunications providers in Germany. The Company provides its customers with a comprehensive portfolio of services and products from the fields of broadband, mobile voice and data services. The core business of 1&1 Drillisch Group is telecommunications and is essentially conducted by the wholly-owned subsidiaries Drillisch Online GmbH ("Drillisch Online"), Maintal, and 1&1 Telecommunication SE ("1&1"), Montabaur. Drillisch's primary activity is the marketing of postpaid and prepaid products in the networks of Telefónica and Vodafone as well as broadband products, including the related applications (such as home networking, online storage, telephony, video on demand or IPTV).
We are expecting the number of customers to continue to grow throughout the business year. Owing to the increased demand on the part of current customers for LTE mobile rate plans, we are adjusting our revenue forecast in that we now expect an increase by about 3% instead of growth of about 4% in the service revenue for 2019 (2018: €2,882.3 million). Owing to the advantageous LTE procurement model, this adjustment does not have any negative impact on our profitability. On the contrary, a negative regulatory effect of about €10 million (increase in subscriber connection line charges from July 2019) and initial costs of about €5 million related to planning and preparation of our 5G network have been newly incorporated into our EBITDA projection. We currently expect EBITDA to grow by about 8% in 2019 instead of increasing by about 10% (2018: €721.9 million). After the conclusion of the aforementioned assessment arbitration, we are planning to issue an even more concrete forecast for the EBITDA.