DGAP-Ad-hoc: United Internet AG / Key word(s): Annual Results/Dividend
- Customer contracts: + 890,000 to 24.74 million contracts
- Sales: + 1.8% to EUR 5.194 billion
- EBITDA: + 5.4% to EUR 1.266 billion acc. to IFRS 16 (prior year: EUR 1.201 billion acc. to IFRS 15); - 1.9% like-for-like IFRS 15 trend
- Earnings per share (EPS): EUR 2.13, operating EUR 1.99 (prior year: EUR 0.94, operating EUR 1.96)
- Dividend proposal: EUR 0.50 per share (prior year: EUR 0.05 per share)
- Guidance 2020: sales and EBITDA at prior-year level
Montabaur, March 25, 2020. In its fiscal year 2019, United Internet made further investments in sustainable growth. All in all, the number of fee-based customer contracts was raised by 890,000 to 24.74 million contracts.
Consolidated sales grew by 1.8% in the fiscal year 2019, from EUR 5,102.9 million (like-for-like prior-year figure after adjusting the disclosed sales figures of a Group subsidiary) to EUR 5,194.1 million.
This at first glance only moderate growth was due in particular to fluctuations during the year in (low-margin) hardware sales (EUR -41.9 million compared to previous year) in the Consumer Access segment. Sales were also influenced by a deliberate ad space reduction as part of the repositioning of the Consumer Applications segment (EUR -8.4 million compared to previous year).
Consolidated EBITDA was positively influenced by the initial application of IFRS 16 (EUR +87.0 million) in the fiscal year 2019. There was an opposing effect in particular from regulatory effects and additional costs (in total: EUR -97.5 million) for wholesale purchases in the Consumer Access segment after the time-limited adjustment mechanism of a wholesale agreement expired at the end of 2018. Contrary to original expectations, the expired arrangement could not be compensated for by a price reduction during the reporting period following arbitration proceedings.
In addition to these extra costs, future investments (implemented as planned), such as the repositioning in the Consumer Applications segment and increased marketing expenses, especially in connection with the rebranding of the Business Applications segment, had an initial negative impact on earnings. EBITDA rose by 5.4% in the fiscal year 2019, from EUR 1,201.3 million to EUR 1,265.7 million (according to IFRS 16). The like-for-like development according to IFRS 15 amounted to -1.9%.
Due to the above mentioned burdens on earnings and one-offs, consolidated operating EBIT of EUR 791.7 million was down on the previous year (EUR 811.0 million) and virtually unaffected by IFRS 16 accounting. This operating EBIT figure does not include a special item from trademark writeups on the "Strato" brand (EBIT effect: EUR +19.4 million).
Earnings per share (EPS) rose from EUR 0.94 to EUR 2.13, or from EUR 1.46 to EUR 2.61 before PPA amortization. Without consideration of PPA amortization and impairment charges for Tele Columbus shares (EPS effect: EUR -1.02) in 2018, as well as impairment reversals for Tele Columbus shares (EPS effect: EUR +0.09) in 2019 and trademark writeups for Strato (EPS effect: EUR +0.05), operating EPS improved from EUR 1.96 to EUR 1.99.
Dividend and Annual General Meeting
United Internet AG
Tel: +49 2602 96-1616
25-March-2020 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|
|EQS News ID:||1007299|
|End of Announcement||DGAP News Service|
1007299 25-March-2020 CET/CEST