DGAP-Adhoc: Drillisch AG: Increased full year guidance exceeded

| Source: EQS Group AG
Drillisch AG  / Key word(s): Preliminary Results/Final Results

11.02.2014 20:40

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.


Drillisch AG: Increased full year guidance exceeded

Highlights of the Business Year 2013 (preliminary unaudited results)
  - EBITDA rises by EUR8.9m to EUR70.8m (+14.4% in comparison with previous

  - EBITDA margin rises by 5.3 percentage points to 24.4%

  - Gross profit rises by EUR10.2m to EUR119.0m (+9.4% in comparison with
    previous year)

  - MVNO clientele grows by 235,000 to 1.705 million (+16.0% in comparison
    with previous year)

  - Budget clientele grows by 351,000 to 856,000 (+69.5% in comparison with
    previous year)

Maintal, 11 February 2014 - Drillisch AG (ISIN DE 0005545503) continued its
dynamic growth in profits from the first nine months of the year and was
once again able to improve its KPIs significantly during the fiscal year
2013 in comparison with the previous year, in contrast to the general
market trend of declining EBITDAs and rising competitive pressures,

The MVNO clientele rose by 235 thousand subscribers or 16.0% to 1.705
million (2012: 1.470m subscribers), the driver of this development is the
strong, qualitative growth of budget subscribers by 69.5% (351,000
subscribers) to 856,000 (2012: 505,000 subscribers). With the qualitative
improvement of the subscriber mix, gross profit rose by EUR10.2 million
(9.4%) to EUR119.0 million (2012: EUR108.9m). The gross profit margin
improved for the first time in the company's history to a level of over 40%
and rose by 7.4 percentage points to 41.0% (2012: 33.6%).

In 2013, the average gross profit per user (AGPPU) has increased by 9.9% to
EUR6.23 (2012: EUR5.67); the AGPPU of the premium-quality budget
subscribers rose to EUR9.40 (2012: EUR8.96)

The EBITDA (earnings before interest, taxes, depreciation and amortisation)
rose by EUR14.4%(EUR8.9m) to EUR70.8 million (2012: EUR61.9m), while the
EBITDA margin increased by 5.3 percentage points to 24.4% (2012: 19.1%).

Profit before taxes rose by EUR157.2 million (756.5%) to EUR178.0 million
(2012: EUR20.8 million). This figure includes, beside the strong operating
business, one-off effects from the complete sale of the freenet AG holding
and the related repayment of all bank loans and the repayment of the
convertible bond issue on freenet stock issued in 2012.

Drillisch has been highly successful in maintaining its position in this
competitive environment characterised by declining revenues in the peer
group. The decrease in service revenues (adjusted for the reduction of the
termination rates and the sale of the prepaid subscribers in 2012) by 2.4%
or EUR7.0 million to EUR285.1m (2012: EUR292.1m) is moderate.

In 2013, operating cash flow amounted to EUR57.0 million. This translates
into a substantial improvement compared with fiscal year 2012 of EUR29.3
million or 105.5% (2012: EUR27.7m).

In comparison with 2012, cash in the group increased by EUR109.7 million or
141.9% to EUR187.0 million at the end of the year.

Performance indicators developed as shown below during Q4:

Adjusted for the decrease in termination rates, there was a moderate
increase in the service revenues compared with Q3-2013 of EUR2.0 million
(2.8%) to EUR72.2 million.

In the fourth quarter of 2013, the number of budget subscribers rose by 123
thousand subscribers compared with Q3-2013.

Gross profit in Q4 amounted to EUR31.9 million (Q3 2013: EUR31.0m). This is
an increase over Q4 2012 of 5.8% or EUR1.7 million (Q4-2012: EUR30.2m). The
gross profit margin amounts to 44.0% (Q3 2012: 43.8%; Q4-12: 38.2%).

The EBITDA increased to EUR18.7 million in Q4 2013 (Q3 2013: EUR18.0m).
Compared with Q4-2012, EBITDA rose by 27.9% or EUR4.1 million. The EBITDA
margin improved by 7.2 percentage points from 18.5% to 25.7%.

In comparison with Q4 2012, EBT rose in the fourth quarter of 2013 by
EUR21.4 million to EUR16.5 million (Q4-2012: - EUR4.9m).

Confirmation EBITDA guidance 2014:
As the operating business continues to develop in a positive direction, the
Management Board expects, based on the current situation, an EBITDA of
EUR82 to EUR85 million for 2014 and simultaneous growth in the MVNO
subscriber basis.

Confirmation dividend forecast 2013 to 2015:
The management board plans upon the positive operational development as
well as the positive cash and cash flow development, to submit to the
upcoming annual general meeting for business year 2013, a dividend proposal
of EUR1.60 per voting share. This translates into a dividend increase of
23% compared with the last dividend.

In terms of a sustainable company policy, we go for a dividend of 'at least
EUR1.60' for the business years 2014 and 2015.

Therewith, we would benefit our shareholders from the positive and
sustainable development of the company.

Provisional performance indicators of Drillisch Group for the business

In EURm                                        2013      2012      Change.
                                                                   in %
Revenues                                       290.5     323.7     -10.3%
Service Revenues                               277.2     301.8     -8.2%
Service Revenues (adjusted for the sale of     285.1     292.1     -2.4%
prepaid subs and the impact from the
reduction of the termination rates)
Other Revenues                                 13.2      21.9      -39.4%

Gross Profit                                   119.0     108.9     +9.4%
Gross Profit Margin                            41.0%     33.6%
EBITDA                                         70.8      61.9      +14.4%
EBITDA Margin                                  24.4%     19.1%
EBT                                            178.0     20.8      +756.5%
EBT-Margin                                     61.3%     6.4%
Cash                                           187.0     77.3      +141.9%
Convertible Bond                               86.2      118.7     -27.4%
Financial Liabilities                          0.0       213.6     -100.0%
Cash-Flow from operating business              57.0      27.7      +105.5%

Subscribers (in thousands)                     1,900     1,910     -0.5%
thereof MVNO subscribers                       1,705     1,470     +16.0%
thereof Budget subscribers (1)                 856       505       +69.5%
thereof Volume subscribers (2)                 848       965       -12.1%

Average Gross Profit per User (AGPPU)
AGPPU (3) Budget subscribers                   9.40      8.96      +4.9%
AGPPU (3) Volume subscribers                   3.81      4.34      -12.2%
AGPPU (3) subscribers (total)                  6.23      5.67      +9.9%


(1) Rate plans with included volume (voice, text messages, Data)

(2) Rate plans with billing based on usage 'Pay as you go'

(3) AGPPU = Average Gross Profit per subscriber


Provisional performance indicators of Drillisch Group for Q4 2013

In EURm                          Q4-13     Q3-13     Q4-12     Change in %
                                                               vs. Q4-12
Revenues                             72.6      70.9      79.0         -8.1%
Service Revenues                     70.0      68.2      74.9         -6.5%
Service Revenues (adjusted for       72.2      70.2      74.9         -3.6%
changes in termination rates)
Other Revenues                        2.6       2.7       4.1        -37.7%

Gross Profit                         31.9      31.0      30.2         +5.8%
Gross Profit Margin                 44.0%     43.8%     38.2%
EBITDA                               18.7      18.0      14.6        +27.9%
EBITDA Margin                       25.7%     25.4%     18.5%
EBT                                  16.5      12.7      -4.9
EBT-Margin                          22.7%     17.8%     -6.2%


All of the above information is based on provisional calculations prior to
the final consolidation and the conclusion of the audit. The final annual
accounts, following their adoption by the Supervisory Board on 21 March
2014, will be the subject of a press and analyst conference and will be
made public at

Maintal, 11 February 2014
Drillisch AG
The Management Board

This announcement contains forward-looking statements based on current
assumptions and forecasts made by the management of Drillisch AG. Known and
unknown risks, uncertainties and other factors could cause the actual
development, in particular the results, financial condition and performance
of our company, to differ materially from the forward-looking statements
given above. The company assumes no obligation to update these
forward-looking statements or to adjust them to future events or
developments. All figures are based on preliminary calculations before
final consolidation and completion of the audit. There may therefore be
discrepancies to the final financial figures to be presented on 21 March

Oliver Keil
Head of Investor Relations
Mail: ir@drillisch.de

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Language:     English
Company:      Drillisch AG
              Wilhelm-Röntgen-Straße 1-5
              63477 Maintal
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:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf, München, Stuttgart
End of Announcement                             DGAP News-Service