DGAP-Adhoc: Drillisch AG posts substantial increase in

Drillisch AG / Key word(s): 9-month figures/Preliminary Results 04.11.2015 00:14 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Drillisch AG posts substantial increase in profit and confirms forecasts Highlights of the first 9 months of 2015 - Service revenue rises by EUR103.7 million to EUR313.4 million (+49.4%) - Gross profit rises by EUR74.1 million to EUR179.4 million (+70.4%) - EBITDA (adjusted) increases by EUR25.9 million to EUR90.5 million (+40.0%) - MVNO clientele grows by 580,000 to 2.449 million (+31.0%) Maintal, 3 November 2015 Drillisch AG (ISIN DE 0005545503) has once more significantly increased the major performance indicators and further improved the earning power of the company in what is overall a difficult and challenging market environment. Strong development in service revenues In a market characterised by stiff competition, Drillisch increased service revenue by 49.4% to EUR313.4 million (9 months 2014: EUR209.8 million) in the first nine months of fiscal year 2015. Strong subscriber development The driver for the overall good subscriber development, which increased by 526,000 subscribers (26.0%) to 2.547 million, was once again the highly dynamic growth in the budget subscriber segment. The number of subscribers here rose by 652,000 (58.3%) to 1.770 million subscribers (9 months 2014: 1.118 million). The number of volume subscribers fell once again as expected to 679,000 (9 months 2014: 751,000 subscribers). MVNO subscribers in total grew by 580,000 (31.0%) to 2.449 million subscribers. Substantial increase in gross profit Gross profit rose by EUR74.1 million (70.4%) and reached EUR179.4 million (9 months 2014: EUR105.3 million). In consequence of the first time inclusion of the distribution segment of The Phone House Group, the gross profit margin reached 39.4% (9 months 2014: 49.4%). EBITDA (adjusted) reaches new high at the upper end of the target corridor The adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) rose by EUR25.9 million (40.0%) to EUR90.5 million (9 months 2014: EUR64.6 million). Essentially due to the first inclusion of the distribution segment of The Phone House Group, the EBITDA margin reached 19.9% (9 months 2014: 30.3%). Compared with last year, marketing spend rose remarkable. In the first nine months 2015 marketing spend rose to EUR42.4 million (9 months 2014: EUR8.4 million). For Q4 2015, Drillisch is planning with a further increase in the premium brands smartmobile.de and yourfone, and a corresponding increase of the subscribers overall. Excellent development of cash flow from current business activities Cash flow from current business activities grew sharply in comparison with the previous year by EUR12.4 million (23.2%) to EUR65.6 million (9 months 2014: EUR53.2 million). Excellent liquidity After disbursement of the dividends in the amount of EUR90.4 million (prev. year: EUR76.8 million) in Q2 2015 as well as Drillisch's payment to Telefónica (EUR150m), which is related to the start of the MBA MVNO model for the investments in the expansion of the LTE network and in future technologies, cash at the end of the reporting period amounted to EUR117.5 million (31/12/2014: EUR317.1 million). In combination with attractive financing opportunities, Drillisch AG has adequate flexibility to expand or supplement its business activities as expedient. Positive development continues on a quarterly basis On a quarterly basis, service revenue rose by EUR43.0 million (61.3%) to EUR113.2 million (Q3 2014: EUR70.2 million). Gross profit in Q3 amounted to EUR76.2 million. This is an increase of EUR39.0 million (104.6%) over Q3 2014 (Q3 2014: EUR37.3 million). The gross profit margin amounts to 37.8% (Q3 2014: 52.3%). The adjusted EBITDA increased to EUR35.3 million in Q3 2015, an increase of EUR13.1 million (58.9%) over Q3 2014 (EUR22.2 million). The EBITDA margin reached 17.5% (Q3 2014: 31.2%). EBITDA forecast As appropriate to the continuing positive development of operating business and with the coming marketing campaigns in Q4, the Management Board still expects an EBITDA (adjusted) for all of 2015 at the high end of the original forecast of between EUR95 million and EUR100 million and a further increase to EUR115 million to EUR120 million for 2016 (based on current status). Dividend forecast 2015 and 2016 In observance of corporate policy aimed at sustainable development, a dividend of at least the same amount as that disbursed for fiscal year 2014 (EUR1.70 per voting share) will be sought for fiscal years 2015 and 2016. By setting this goal, we indicate our intention to involve our shareholders in the positive development of our business over the long term. Provisional and unaudited performance indicators of Drillisch Group for 9M 2015 <pre> In EURm 30/09/2015 30/09/2014 Change in % Revenues 455.1 213.0 +113.7% Service revenues 313.4 209.8 +49.4% Gross profit 179.4 105.3 +70.4% Gross profit margin in % 39.4% 49.4% EBITDA 88.2 64.6 +36.5% EBITDA margin in % 19.4% 30.3% EBITDA (adj.) 90.5 64.6 +40.0% EBITDA margin (adj.) in % 19.9% 30.3% Cash 117.5 160.5 -26.8% CF from current business activities 65.6 53.2 +23.2% Subscribers (millions) 2,547 2,021 +26.0% thereof MVNO subscribers 2.449 1.869 +31.0% thereof budget subscribers 1.770 1.118 +58.3% thereof volume subscribers 0.679 0.751 -9.6% </pre> Provisional an unaudited performance indicators of Drillisch Group for Q3 2015 <pre> In EURm Q3 2015 Q3 2014 Change in % Q2 2015 Service revenues 113.2 70.2 +61.3% 104.8 Gross profit 76.2 37.3 +104.6% 55.4 Gross profit margin in % 37.8% 52.3% 35.9% EBITDA 34.9 22.2 +56.8% 26.4 EBITDA margin in % 17.3% 31.2% 17.1% EBITDA (adj.) 35.3 22.2 +58.9% 28.2 EBITDA margin (adj.) in % 17.5% 31.2% 18.3% </pre> You can view the complete 9-month report by clicking on the following link from 12 November http://www.drillisch.de/investor-relations/reports Maintal, 3 November 2015 Drillisch AG The Management Board Contact: Oliver Keil Head of Investor Relations Mail: ir@drillisch.de 04.11.2015 The DGAP 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-Straße 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: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------