Drillisch AG: Management Board increases EBITDA guidance for 2014 and announces dividend proposal until business year 2015. 


Drillisch AG  / Key word(s): Change in Forecast/Dividend

14.11.2013 13:39

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Drillisch AG: Management Board increases EBITDA guidance for 2014 and
announces dividend proposal until business year 2015.

Highlights of the first 9 months of 2013
  - EBITDA rises by EUR4.8m to EUR52.1m (+10.2% in comparison with previous
    year)

  - EBITDA margin rises by 4.6 percentage points to 23.9%

  - Gross profit rises by EUR8.4m to EUR87.1m (+10.7% in comparison with
    previous year)

  - MVNO clientele grows by 259,000 to 1.648 million (+18.6% in comparison
    with previous year)

  - EBITDA guidance 2014: EUR82m to EUR85m

  - Dividend proposal for 2013 EUR1.60 and for business year 2014 and 2015
    at least EUR1.60

Maintal, 14 November 2013 - In contrast to the general market trend of
declining EBITDAs and rising competitive pressures, Drillisch AG (ISIN DE
0005545503) continued its dynamic growth in profits from the first half of
the year and was once again able to improve its earning power significantly
during the first nine months of fiscal year 2013 in comparison with the
previous year. In the year-on-year comparison, the share of postpaid
subscribers rose by 6.5 percentage points to 93.2% (9M 2012: 86.7%).

As a consequence of the strong growth in the sector of budget subscribers
of 91.4% (350,000 subscribers) to 733,000 (9M 2012: 383,000 subscribers)
and simultaneously of the slight decline in volume subscribers to 915,000
(9M 2012: 1.006 million subscribers), gross profit rose by EUR8.4 million
(10.7%) to EUR87.1 million (9M 2012: EUR78.7m). The gross profit margin
improved by 7.8 percentage points to 40.0% (9M 2012: 32.2%).

Average gross profit per user (AGPPU) has increased by 11.7% to EUR6.12 (9M
2012: EUR5.48) within a single year.

The EBITDA (earnings before interest, taxes, depreciation and amortisation)
rose by EUR4.8 million (10.2%) to EUR52.1 million (9M 2012: EUR47.3m),
while the EBITDA margin increased by 4.6 percentage points to 23.9% (9M
2012: 19.3%).

Drillisch has been highly successful in maintaining its position in this
competitive environment characterised by declining revenues in the peer
group. The decrease in service revenues (adjusted for the reduction of the
termination rates and the sale of the prepaid subscribers in 2012) by 2% to
EUR212.9m (9M 2012: EUR217.2m) is moderate.

In comparison with the first half of the year, cash in the group increased
by another EUR9.1 million to EUR52.7 million. Operating cash flow in Q3
amounted to EUR18.0 million. This translates into a substantial improvement
during the first nine months of fiscal year 2013 to EUR31.1 million,
approximately treble the figure of the same period last year (9M 2012:
EUR10.5m).

The balance sheet total was reduced by EUR286.1 million to EUR236.5 million
(31/12/2012: EUR522.6m) by the fully repayment of the financial
liabilities. At the same time, equity rose significantly by EUR75.9 million
to EUR196.1 million (31/12/2012: EUR120.2m) thanks to the excellent
consolidated results. This leads to an equity ratio of 82.9% (31/12/2912:
23.0%).

Performance indicators developed as shown below during Q3:

Adjusted for the decrease in termination rates, there was a moderate
decline in the service revenues on a quarterly basis of EUR1.8 million
(2.5%) to EUR70.2 million (Q3 2012 adjusted: EUR72.0m).

Gross profit in Q3 amounted to EUR31.0 million. This is an increase of
EUR3.6 million (13.3%) over Q3 2012 (Q3 2012: EUR27.4m). The gross profit
margin amounts to 43.8% (Q3 2012: 35.5%).

The EBITDA increased to EUR18.0 million in Q3 2013, an increase of EUR3.9
million (27.7%) over Q3 2012 (EUR14.1m). The EBITDA margin improved by 7.1
percentage points from 18.3% to 25.4%.

EBITDA guidance 2013 and 2014:
As the operating business continues to develop in a positive direction, the
Management Board, based on the current situation, expects an EBITDA of
EUR70 million for 2013 as a whole as well as a further increase to EUR82
million to EUR85 million in 2014 and simultaneous growth in the MVNO
clientele basis in 2014.

Dividend forecast 
According to today's board decision, the management board decided upon the
positive operational development as well as the positive cash and cash flow
development, to submit to the upcoming annual general meeting for business
year 2013, a dividend proposal of EUR1.60 per voting share. This translates
into a dividend increase of 23% compared with the last dividend.

Based on current planning and subject to the approval by the governing
boards and the Annual General Meeting, we go for a dividend of 'at least
EUR1.60' for the business years 2014 and 2015.

Therewith, we would benefit our shareholders from the positive and
sustainable development of the company.

Provisional performance indicators of Drillisch Group for the first nine
months of 2013


In EURm                                       30/09/    30/09/    Change in
                                              2013      2012      %
Service revenue                               207.2     227.0     -8.7%
Service revenue (adjusted)¹                   212.9     217.2     -2.0%
Gross profit                                  87.1      78.7      +10.7%
Gross profit margin in %                      40.0%     32.2%
AGPPU average gross profit per user (MVNO)    6.12      5.48      +11,7%
(blended)
AGPPU average gross profit per user (MVNO)    9.60      9.93      -3.3%
(budget)
EBITDA                                        52.1      47.3      +10.2%
EBITDA margin in %                            23.9%     19.3%
Subscribers (millions)                        1.855     1.906     -2.7%
thereof MVNO subscribers                      1.648     1.389     +18.6%
thereof budget subscribers                    0.733     0.383     +91.4%
thereof volume subscribers                    0.915     1.006     -9.0%




Provisional performance indicators of Drillisch Group for Q3 2013


In EURm                        Q3 2013    Q3 2012    Change in %    Q2 2013
Service revenue                68.2       72.0       -5.3%          69.1
Service revenue (adjusted)²    70.2       72.0       -2.5%          71.1
Gross profit                   31.0       27.4       +13.3%         29.6
Gross profit margin in %       43.8%      35.5%                     40.9%
EBITDA                         18.0       14.1       +27.7%         17.9
EBITDA margin in %             25.4%      18.3%                     24.8%




¹Adjusted for the impact of the decrease in termination rates and the sale
of prepaid subscribers in 2012
²Adjusted for the impact of the decrease in termination rates 

The complete 9-month report is available from 15 November at the following
link:
http://www.drillisch.de/index.php?page=berichte&group=investor:berichte

Maintal, 14 November 2013

Drillisch AG
The Management Board


Contact:

Oliver Keil
Head of Investor Relations
Mail: ir@drillisch.de

14.11.2013 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
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Language:     English
Company:      Drillisch AG
              Wilhelm-Röntgen-Straße 1-5
              63477 Maintal
              Germany
Phone:        +49 (0)6181 412 200
Fax:          +49 (0)6181 412 183
E-mail:       ir@drillisch.de
Internet:     www.drillisch.de
ISIN:         DE0005545503
WKN:          554550
Indices:      TecDAX
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf, München, Stuttgart
 
End of Announcement                             DGAP News-Service
 
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