DGAP-Adhoc: Drillisch AG: Increased full year guidance

Drillisch AG / Key word(s): Preliminary Results/Final Results 11.02.2014 20:40 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: Increased full year guidance exceeded Highlights of the Business Year 2013 (preliminary unaudited results) - EBITDA rises by EUR8.9m to EUR70.8m (+14.4% in comparison with previous year) - EBITDA margin rises by 5.3 percentage points to 24.4% - Gross profit rises by EUR10.2m to EUR119.0m (+9.4% in comparison with previous year) - MVNO clientele grows by 235,000 to 1.705 million (+16.0% in comparison with previous year) - Budget clientele grows by 351,000 to 856,000 (+69.5% in comparison with previous year) Maintal, 11 February 2014 - Drillisch AG (ISIN DE 0005545503) continued its dynamic growth in profits from the first nine months of the year and was once again able to improve its KPIs significantly during the fiscal year 2013 in comparison with the previous year, in contrast to the general market trend of declining EBITDAs and rising competitive pressures, The MVNO clientele rose by 235 thousand subscribers or 16.0% to 1.705 million (2012: 1.470m subscribers), the driver of this development is the strong, qualitative growth of budget subscribers by 69.5% (351,000 subscribers) to 856,000 (2012: 505,000 subscribers). With the qualitative improvement of the subscriber mix, gross profit rose by EUR10.2 million (9.4%) to EUR119.0 million (2012: EUR108.9m). The gross profit margin improved for the first time in the company's history to a level of over 40% and rose by 7.4 percentage points to 41.0% (2012: 33.6%). In 2013, the average gross profit per user (AGPPU) has increased by 9.9% to EUR6.23 (2012: EUR5.67); the AGPPU of the premium-quality budget subscribers rose to EUR9.40 (2012: EUR8.96) The EBITDA (earnings before interest, taxes, depreciation and amortisation) rose by EUR14.4%(EUR8.9m) to EUR70.8 million (2012: EUR61.9m), while the EBITDA margin increased by 5.3 percentage points to 24.4% (2012: 19.1%). Profit before taxes rose by EUR157.2 million (756.5%) to EUR178.0 million (2012: EUR20.8 million). This figure includes, beside the strong operating business, one-off effects from the complete sale of the freenet AG holding and the related repayment of all bank loans and the repayment of the convertible bond issue on freenet stock issued in 2012. 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 2.4% or EUR7.0 million to EUR285.1m (2012: EUR292.1m) is moderate. In 2013, operating cash flow amounted to EUR57.0 million. This translates into a substantial improvement compared with fiscal year 2012 of EUR29.3 million or 105.5% (2012: EUR27.7m). In comparison with 2012, cash in the group increased by EUR109.7 million or 141.9% to EUR187.0 million at the end of the year. Performance indicators developed as shown below during Q4: Adjusted for the decrease in termination rates, there was a moderate increase in the service revenues compared with Q3-2013 of EUR2.0 million (2.8%) to EUR72.2 million. In the fourth quarter of 2013, the number of budget subscribers rose by 123 thousand subscribers compared with Q3-2013. Gross profit in Q4 amounted to EUR31.9 million (Q3 2013: EUR31.0m). This is an increase over Q4 2012 of 5.8% or EUR1.7 million (Q4-2012: EUR30.2m). The gross profit margin amounts to 44.0% (Q3 2012: 43.8%; Q4-12: 38.2%). The EBITDA increased to EUR18.7 million in Q4 2013 (Q3 2013: EUR18.0m). Compared with Q4-2012, EBITDA rose by 27.9% or EUR4.1 million. The EBITDA margin improved by 7.2 percentage points from 18.5% to 25.7%. In comparison with Q4 2012, EBT rose in the fourth quarter of 2013 by EUR21.4 million to EUR16.5 million (Q4-2012: - EUR4.9m). Confirmation EBITDA guidance 2014: As the operating business continues to develop in a positive direction, the Management Board expects, based on the current situation, an EBITDA of EUR82 to EUR85 million for 2014 and simultaneous growth in the MVNO subscriber basis. Confirmation dividend forecast 2013 to 2015: The management board plans 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. In terms of a sustainable company policy, 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 business year2013 <pre> In EURm 2013 2012 Change. in % Revenues 290.5 323.7 -10.3% Service Revenues 277.2 301.8 -8.2% Service Revenues (adjusted for the sale of 285.1 292.1 -2.4% prepaid subs and the impact from the reduction of the termination rates) Other Revenues 13.2 21.9 -39.4% Gross Profit 119.0 108.9 +9.4% Gross Profit Margin 41.0% 33.6% EBITDA 70.8 61.9 +14.4% EBITDA Margin 24.4% 19.1% EBT 178.0 20.8 +756.5% EBT-Margin 61.3% 6.4% Cash 187.0 77.3 +141.9% Convertible Bond 86.2 118.7 -27.4% Financial Liabilities 0.0 213.6 -100.0% Cash-Flow from operating business 57.0 27.7 +105.5% Subscribers (in thousands) 1,900 1,910 -0.5% thereof MVNO subscribers 1,705 1,470 +16.0% thereof Budget subscribers (1) 856 505 +69.5% thereof Volume subscribers (2) 848 965 -12.1% Average Gross Profit per User (AGPPU) AGPPU (3) Budget subscribers 9.40 8.96 +4.9% AGPPU (3) Volume subscribers 3.81 4.34 -12.2% AGPPU (3) subscribers (total) 6.23 5.67 +9.9% </pre> (1) Rate plans with included volume (voice, text messages, Data) (2) Rate plans with billing based on usage 'Pay as you go' (3) AGPPU = Average Gross Profit per subscriber Provisional performance indicators of Drillisch Group for Q4 2013 <pre> In EURm Q4-13 Q3-13 Q4-12 Change in % vs. Q4-12 Revenues 72.6 70.9 79.0 -8.1% Service Revenues 70.0 68.2 74.9 -6.5% Service Revenues (adjusted for 72.2 70.2 74.9 -3.6% changes in termination rates) Other Revenues 2.6 2.7 4.1 -37.7% Gross Profit 31.9 31.0 30.2 +5.8% Gross Profit Margin 44.0% 43.8% 38.2% EBITDA 18.7 18.0 14.6 +27.9% EBITDA Margin 25.7% 25.4% 18.5% EBT 16.5 12.7 -4.9 EBT-Margin 22.7% 17.8% -6.2% </pre> All of the above information is based on provisional calculations prior to the final consolidation and the conclusion of the audit. The final annual accounts, following their adoption by the Supervisory Board on 21 March 2014, will be the subject of a press and analyst conference and will be made public at http://www.drillisch.de/investor-relations/reports Maintal, 11 February 2014 Drillisch AG The Management Board Disclaimer This announcement contains forward-looking statements based on current assumptions and forecasts made by the management of Drillisch AG. Known and unknown risks, uncertainties and other factors could cause the actual development, in particular the results, financial condition and performance of our company, to differ materially from the forward-looking statements given above. The company assumes no obligation to update these forward-looking statements or to adjust them to future events or developments. All figures are based on preliminary calculations before final consolidation and completion of the audit. There may therefore be discrepancies to the final financial figures to be presented on 21 March 2014. Contact: Oliver Keil Head of Investor Relations Mail: ir@drillisch.de 11.02.2014 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 412 218 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 ---------------------------------------------------------------------------