DGAP-Adhoc: Drillisch AG: Management Board increases EBITDA

Drillisch AG / Key word(s): Change in Forecast/Dividend 14.11.2013 13:39 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- 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 <pre> 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% </pre> Provisional performance indicators of Drillisch Group for Q3 2013 <pre> 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% </pre> 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=berich...r: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. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: Drillisch AG Wilhelm-Röntgen-Stra�e 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 ---------------------------------------------------------------------------