DGAP-Ad-hoc: United Internet AG / Key word(s): Final Results/Forecast
Apart from the 22.89 million customer contracts in current product lines, the company holds a further 0.47 million contracts without basic monthly fees and service provider contracts (volume-based tariffs / MSP tariffs) from the Drillisch acquisition. In addition, there are 0.11 million DSL contracts in the phased-out T-DSL / R-DSL product lines.
Consolidated sales grew by 10.5% to EUR 4.206 billion in the fiscal year 2017 (comparable prior-year figure: EUR 3.808 billion). Revenue contributions from Strato, ProfitBricks and Drillisch were offset in part by burdens on sales from regulation effects (international roaming / termination fees) and negative currency effects.
Earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 17.3% to EUR 979.6 million in the fiscal year 2017 (comparable prior-year figure: EUR 835.4 million). This figure was impacted by new earnings contributions from Strato, ProfitBricks and Drillisch, as well as - with an opposing effect - by regulation effects and costs for the Telefónica DSL migration, and negative currency effects.
In addition, EBITDA was influenced by a positive net extraordinary result of EUR 273.7 million. This figure results from one-off, non-cash-effective extraordinary income from the Drillisch acquisition (due to the revaluation of Drillisch shares acquired before the complete transaction was closed) and the complete takeover of ProfitBricks (due to the revaluation of previously held ProfitBricks shares), as well as opposing transaction and restructuring costs.
Earnings before interest and taxes (EBIT) rose by 9.8% to EUR 705.9 million in the fiscal year 2017 (comparable prior-year figure: EUR 642.7 million). The lower percentage growth compared to EBITDA results from increased purchase price allocation (PPA) amortization from the takeovers of Drillisch and Strato.
EBIT was also improved by the above mentioned extraordinary result of EUR 273.7 million in total. There was an opposing effect for this item from the trademark writedowns of a Group subsidiary totaling EUR 20.7 million.
Including all above mentioned extraordinary effects, EBITDA rose to EUR 1,253.3 million and EBIT to EUR 958.9 million.
Operating EPS before PPA amortization, resulting in particular from the Versatel, Strato and Drillisch takeovers, amounted to EUR 2.34 (comparable prior-year figure without Rocket impairments: EUR 2.27). In addition, there was a net positive impact on EPS in the reporting period from the above mentioned extraordinary result (EPS effect: EUR 1.43) and - with an opposing effect - from trademark writedowns (EPS effect: EUR -0.07), financing costs in connection with the total Drillisch transaction (EPS effect: EUR -0.01), Rocket impairments (EPS effect: EUR -0.10) and one-off tax effects from the Warburg Pincus investment in the Business Applications division and Drillisch takeover (EPS effect: EUR -0.21). All in all, EPS from continued operations rose from EUR 2.27 to EUR 3.38.
In May 2014, the International Accounting Standards Board (IASB) published the standard IFRS 15 "Revenue from Contracts with Customers". Application is mandatory in reporting periods beginning on or after January 1, 2018.
Sales of United Internet according to IFRS 15 are expected to reach approx. EUR 5.2 billion in fiscal year 2018 (prior year: EUR 4.21 billion). In addition to the planned organic growth and the full-year consolidation of Strato, ProfitBricks and Drillisch, this revenue growth will result from the increased usage of subsidized smartphones in connection with earlier recognition of hardware sales according to IFRS 15 (sales effect: approx. EUR 200 million).
Consolidated EBITDA of approx. EUR 1.2 billion is anticipated (prior year: EUR 980 million). This figure includes a burden on earnings of approx. EUR 300 million from additional smartphone subsidies (refinanced via higher tariff prices) and - with an opposing positive effect - approx. EUR 300 million from accounting according to IFRS 15. EBITDA is also expected to include approx. EUR 50 million in synergy effects from the merger with Drillisch, especially via savings in the procurement of wholesale network services and smartphones. These savings will be offset by approx. EUR 50 million for the increased marketing budget and changes in the ad space monetization of GMX and WEB.DE.
In addition, the EBITDA forecast includes approx. EUR 50 million one-off expenses for integration projects.
21-March-2018 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
|Company:||United Internet AG|
|Elgendorfer Straße 57|
|Phone:||+49 (0)2602 / 96 - 1100|
|Fax:||+49 (0)2602 / 96 - 1013|
|Listed:||Regulated Market in Berlin, Frankfurt (Prime Standard); Regulated Unofficial Market in Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange|
|End of Announcement||DGAP News Service|
667139 21-March-2018 CET/CEST