DGAP-Ad-hoc: 1&1 Drillisch Aktiengesellschaft / Key word(s): Quarterly / Interim Statement/Change in Forecast
1&1 Drillisch AG: At the end of the first nine months of 2020, 1&1 Drillisch confirms its EBITDA forecast and specifies its revenue forecast for growth of approx. 3% and an increase in high-margin service revenues of approx. + 2.5%
05-Nov-2020 / 23:04 CET/CEST
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1&1 Drillisch AG: At the end of the first nine months of 2020, 1&1 Drillisch confirms its EBITDA forecast and specifies its revenue forecast for growth of approx. 3% and an increase in high-margin service revenues of approx. 2.5%
9-month figures 2020:
- 350,000 new customer contracts to 14.68 million
- Revenue: EUR 2.814 billion (+3.1% versus previous year), like-for-like adjusted revenue +3.7%
- Service revenue: EUR 2.258 billion (+2.6% versus previous year), like-for-like adjusted service revenue +3,4%
- EBITDA: EUR 456.6 million (-10.2% versus previous year), like-for-like adjusted EBITDA1 +3,2%
Maintal, 5 November 2020 - In the first nine months of 2020, 1&1 Drillisch AG (ISIN DE 0005545503) increased the number of customer contracts across all customer groups by 350,000 to 14.68 million contracts compared with 31 December 2019. Compared with 30 September 2019, the total number of customer contracts increased by 560,000 or respectively 4.0%.
Revenue in the first nine months of 2020 increased by 3.1% to EUR 2.814 billion (9M-2019: EUR 2.730 billion). High-margin service revenues increased by 2.6% to EUR 2.258 billion (9M-2019: EUR 2.200 billion). Without negative effects of -EUR 16.4 million as a result of the coronavirus pandemic (in particular: lack of international roaming revenues), revenues would have increased by 3.7%, service revenues would have increased by 3.4%.
Other sales increased by 5.0% to EUR 555.7 million (9M-2019: EUR 529.3 million). These revenues mainly relate to the business with hardware (smartphones, tablets, WLAN routers etc.) and is of low-margin due to no or only small one-of payments of the customers at contract conclusion or tariff change as well as return of the device values via higher package prices. The business fluctuates seasonally and the development depends heavily on the attractiveness of new devices and the model cycles of manufacturers.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) for the first nine months in 2020 at EUR 456.6 million were down on the previous year (9M-2019: EUR 508.7 million). This was mainly caused by the effects of the coronavirus pandemic, regulatory effects, preparations for the 5G mobile network and the overcharged billing of the MBA MVNO contract by Telefónica since July 2020 from the perspective of 1&1 Drillisch. Without the aforementioned effects, like-for-like adjusted EBITDA1 would have increased by 3.2%.
1&1 Drillisch still expects about 500,000 new customers in 2020. With regard to high-margin service revenues, we are specifying our previous growth forecast of 2 to 3% to approx. 2.5% (previous year: EUR 2.943 billion). With regard to total revenue, we now expect growth of approx. 3%, compared with around 4% previously (previous year: EUR 3.674 billion), due to the more restrained demand from the customer base for new smartphones and tablets resulting from fewer contract changers. Since the business with hardware is low-margin, the specification of the revenue has no impact on our EBITDA forecast, which we confirm at approx. EUR 600 million euros (previous year: EUR 683.5 million).
This forecast is subject to uncertainties, as it is currently not possible to precisely assess the duration and further effects of the coronavirus pandemic and the outcome of the ongoing negotiations with Telefónica cannot be predicted at this time.
Performance indicators pursuant to IFRS - comparison 9M 2020 vs. 9M 2019
||Change. in %
|- thereof service revenues
|EBITDA (like-for-like adjusted) 1
|EBIT without PPA write-offs
|Profit per share in ? excluding PPA write-offs
|Profit per share in ?
|Customer contracts in current product lines (millions)
|of which mobile internet
|of which broadband lines (VDSL, ADSL, FTTH)
(1) Initial costs 5G (9M 2020: - ?8.4m, 9M 2019: - ?2.5m), regulation "subscriber line increases" (9M 2020: - ?8.2m, 9M 2019: ?0.0m), regulation "text message costs" EU (9M 2020: - ?5.5m, 9M 2019: - ?1.0m), One-Offs from integration projects (9M 2020: - ?0.7m, 9M 2019: - ?3.8m), Increased usage behaviour through Corona, mainly NON-EU Roaming (9M 2020: - ?17.7m, 9M 2019: ?0.0m, from a 1&1 Drillisch perspective overcharged billing MBA MVNO contract (9M 2020: - ?35.5m, 9M 2019: ?0.0m)
The 9 month report will be made public on the Company's homepage on 10 November 2020.
Maintal, 5 November 2020
1&1 Drillisch AG
The Management Board
Financial performance indicators such as EBITDA, EBITDA margin, EBIT, EBIT margin or free cash flow are used in addition to the disclosures required by the International Financial Reporting Standards (IFRS) in the annual and interim financial statements of 1&1 Drillisch AG and in ad hoc reports pursuant to Art. 17 MAR to ensure a clear and transparent presentation of 1&1 Drillisch's business development. Information about the use, definition and calculation of these performance indicators is provided on page 37 of the Annual Report 2019 of 1&1 Drillisch AG.
Head of Investor Relations
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