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
|EBITDA margin in %
|EBIT margin in %
|Profit/loss per share in euros
|Profit per share in EUR without PPA write-offs
|Customer contracts in current product lines (million)
|thereof mobile internet
*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.
Maintal, 13 August 2018
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.
Head of Investor Relations
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