UNITED INTERNET AG (FRA:UTDI) Successful first half-year 2011 for United Internet

Directive transparence : information réglementée

16/08/2011 07:27
United Internet AG / Key word(s): Half Year Results 16.08.2011 07:27 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- - Sales up 8.4% to all-time high of EUR 1,009.4 million - Earnings before taxes rise by 22.9% to EUR 144.2 million - Earnings per share (EPS) grow by 41.2% to EUR 0.48 - Customer contracts pass 10 million-mark for first time Montabaur, August 16, 2011. The Management Board of United Internet AG (ISIN DE0005089031) today announced the consolidated results according to IFRS for the first six months of 2011. Group development Consolidated sales of United Internet AG grew by 8.4% from EUR 930.8 million in the previous year to EUR 1,009.4 million in the first six months of 2011. United Internet also achieved strong growth in customer contracts: with the addition of 400,000 new contracts to 10.16 million, growth easily exceeded that of the first half-year 2010 (290,000 new contracts). Despite high costs for new customer acquisition, especially in the form of smartphone subsidies in its Mobile Internet business, as well as high costs for the development of new products and further international expansion, United Internet succeeded in posting very good earnings. Both earnings before interest, taxes, depreciation and amortization (EBITDA) and earnings before interest and taxes (EBIT) were well up on the previous year at EUR 200.9 million (prior year: EUR 182.0 million) and EUR 160.0 million (prior year: EUR 142.2 million), respectively. Earnings before taxes (EBT) grew by 22.9% from EUR 117.3 million last year to EUR 144.2 million. These earnings figures include a positive net balance of EUR 16.3 million from the sale of Versatel shares, the valuation of related call options received, and the negative at-equity result of Versatel included for the last time in the consolidated figures. Earnings per United Internet share (EPS) improved by 41.2% from EUR 0.34 to EUR 0.48.
Group development                      Jan.-June    Jan.-June    Change
Quarterly comparison (in EUR  million)      2010         2011
Sales                                      930.8      1,009.4    + 8.4%
EBITDA                                     182.0        200.9   + 10.4%
EBIT                                       142.2        160.0   + 12.5%
EBT                                        117.3        144.2   + 22.9%
EPS (in EUR)                                0.34         0.48   + 41.2%
Development of business in the 'Access' segment As a consequence of the positive development in customer contracts, sales in the 'Access' segment grew by 9.1% to EUR 657.2 million. Despite a significant increase in costs for new customer acquisition, especially due to the additional marketing - compared to the first half of 2010 - of new Mobile Internet products, segment EBITDA and EBIT remained virtually unchanged from the previous year at EUR 65.5 million (prior year: EUR 66.2 million) and EUR 51.0 million (prior year: EUR 53.2 million), respectively.
Development of  Access segment          Jan.-June   Jan.-June   Change
Quarterly comparison (in EUR  million)       2010        2011  
Sales                                       602.2       657.2   + 9.1%
EBITDA                                       66.2        65.5   - 1.1%
EBIT                                         53.2        51.0   - 4.1%
The number of fee-based Access contracts grew by a total of 160,000 contracts, from 3.63 million as of December 31, 2010 to 3.79 million as of June 30, 2011.
Customer contracts in Access segment   June 30,     Dec. 31,     June 30,
(in million)                               2010         2010         2011
Access, total                              3.50         3.63         3.79
of which DSL complete (ULL)                2.01         2.32         2.41
of which Mobile Internet                   0.09         0.27         0.48
of which narrowband / T-DSL / R-DSL        1.40         1.04         0.90
Development of business in the 'Applications' segment Sales of the 'Applications' segment also grew strongly by 7.3% to EUR 352.0 million. Adjusted for currency effects, growth amounted to 8 %. As expected, segment EBITDA was down on the previous year at EUR 111.4 million (prior year: EUR 118.9 million) while segment EBIT reached EUR 85.1 million (prior year: EUR 92.3 million). This was due to high expenditure for the development of new Cloud products, international expansion, and greatly increased marketing expenses especially for the additional marketing - compared to the first half of 2010 - of the 1&1 Do-it-Yourself Homepage.
Development of Applications segment         Jan.-June  Jan.-June  Change
Quarterly comparison (in EUR  million)           2010       2011   
Sales                                           328.2      352.0  + 7.3%
EBITDA                                          118.9      111.4  - 6.3%
EBIT                                             92.3       85.1  - 7.8%
The number of fee-based Applications contracts grew by 240,000 to 6.37 million in the first six months of 2011 (of which 2.58 million abroad). Ad-financed accounts rose from 28.0 million to 28.5 million.
Customer contracts in Applications       June 30,    Dec. 31,    June 30,
segment (in million)                         2010        2010        2011
Total fee-based contracts                    5.94        6.13        6.37
of which domestic                            3.59        3.68        3.79
of which foreign                             2.35        2.45        2.58
Ad-financed accounts                         26.6        28.0        28.5
Outlook In view of the successful first six months of 2011, United Internet has raised its sales guidance and now expects record consolidated sales of around EUR 2.050 billion. In the remaining six months, the strong progress of business and special items such as the deconsolidation of the loss-making Versatel investment will provide additional financial scope for United Internet. This scope will be used to strengthen customer acquisition efforts and launch an extensive marketing campaign for the 1&1 Do-it-Yourself Homepage in five foreign markets. The campaign will cost around EUR 35 million and aims to raise awareness of the 1&1 brand and clearly position it as a solution-provider for small companies. At the same time, the number of new customers is expected to grow further. Specifically, the company has raised its customer growth forecast for 2011 by 20%, from 700,000 contracts to 840,000. This will broaden the basis for a successful performance in the years ahead. Despite strongly increased sales and marketing budgets, United Internet expects EBITDA to reach approx. EUR 350 million and has upheld its EBT guidance of around EUR 250 million and its EPS forecast of around EUR 0.80/share. Marcus Schaps Head of Public Relations United Internet AG Elgendorfer Straße 57 56410 Montabaur Tel: 02602/96-1076 Fax: 02602/96-1013 E-Mail: mschaps@united-internet.de Internet: www.united-internet.de 16.08.2011 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: United Internet AG Elgendorfer Straße 57 56410 Montabaur Germany Phone: +49 (0)2602 / 96 - 1100 Fax: +49 (0)2602 / 96 - 1013 E-mail: info@united-internet.de Internet: www.united-internet.de ISIN: DE0005089031 WKN: 508903 Indices: TecDAX Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard); Freiverkehr in Düsseldorf, Hamburg, Hannover, München, Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------