DGAP-Adhoc: Drillisch AG: Forecast for the Year Exceeded; Increase of Dividend


Drillisch AG  / Key word(s): Preliminary Results/Dividend

26.02.2015 17:56

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
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The issuer is solely responsible for the content of this announcement.

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Drillisch AG: Forecast for the Year Exceeded; Increase of Dividend

Highlights of Business Year 2014 (Provisional Results)
  - EBITDA rises by EUR14.4m to EUR85.2m (+20.3% over previous year)

  - EBITDA margin rises by 5.0 percentage points to 29.4% 

  - Gross profit rises by EUR23.6m to EUR142.6m (+19.8% over previous year)

  - Gross profit per MVNO user (AGPPU) rises to EUR6.47 (+3.9% over
    previous year)

  - MVNO clientele grows by 223,000 to 1.928 million (+13.1% over previous
    year)

  - Budget clientele grows by 355,000 to 1.211 million (+41.5% over
    previous year)

Maintal, 26 February 2015 - Drillisch AG (ISIN DE 0005545503) grew in
business year 2014 and increased operating profit once again.

The MVNO clientele increased by 223,000 (13.1%) to 1.928 million
subscribers (2013: 1.705 million subscribers). This increase comes
especially from the growth in the budget subscribers sector, which rose by
355,000 subscribers (41.5%) to 1.211 million (2013: 856,000 subscribers).
Service revenue that grew by EUR7.4 million (2.7%) to EUR284.6 million
(2013: EUR277.2m) was realised from a total subscriber base of 2.070
million (2013: 1.900 million subscribers).

Thanks to subscriber growth and the improved quality of the tariff mix,
gross profit rose by EUR23.6 million (19.8%) to EUR142.6 million (2013:
EUR119.0m). The gross profit margin improved by 8.2 percentage points to
49.2% (2013: 41.0%) and marks a new high point in the Company's history.

Average gross profit per MVNO user (AGPPU) increased by 3.9% to EUR6.47
(2013: EUR6.23) in business year 2014.
 
The EBITDA (earnings before interest, taxes, depreciation and amortisation)
rose by EUR14.4 million (20.3%) to EUR85.2 million (2013: EUR70.8m) while
the EBITDA margin increased by 5.0 percentage points to 29.4% (2013:
24.4%).

Profit before taxes (EBT), adjusted for the 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 on freenet stock
issued in 2012 rose by EUR10.5 million (16.9%) to EUR72.6 million (2013:
EUR62.1m).

Operative cash flow improved strongly in business year 2014 by EUR14.8
million (26.0%) to EUR71.8 million (2013: EUR57.0m).

Cash in the group increased by 130.1 million (69.5%) over the previous year
and amounted to EUR317.1 million at the end of 2014 (2013: EUR187.0m).

Performance indicators developed as shown below during Q4 2014:

Service revenue in Q4 2014 rose by EUR4.7 million (6.6%) over Q3 2014 to
EUR74.8 million (Q3 2014: EUR70.2m). In comparison with the same quarter of
the previous year, Service revenue rose by EUR4.8 million (6.9%) (Q4 2013:
EUR70.0m).

The number of budget subscribers rose by 93,000 (8.3%) in Q4 in comparison
with Q3. This is an increase of 355,000 subscribers (41.5%) over the same
quarter of the previous year.

Gross profit in Q4 at EUR37.4 million rose slightly (by 0.2%) in comparison
with Q3. In comparison with Q4 2013, there was a significant rise of EUR5.5
million (17.1%). The gross profit ratio reached 48.7% (Q4 2013: 44.0%).

The EBITDA increased to EUR20.6 million in Q4 2014. This represents a rise
of EUR1.9 million (10.3%) over Q4 2013 (Q4 2013: EUR18.7m). The EBITDA
margin improved by 1.2 percentage points from 25.7% to 26.9%. In comparison
with Q3 2014, EBITDA declined by EUR1.6 million because of higher marketing
spend.

Confirmation of the EBITDA forecast 2015:
Drillisch is targeting a clear increase of the MVNO subscriber segment as
well as further improvements in the tariff mix and profitability from
operations, accompanied by simultaneous growth in revenue.

With the acquisition of yourfone GmbH and the start of the MBA MVNO model
with effect of 1st July 2015, the offline distribution with circa 300 shops
will begin as well. The company is expecting additional growth in
subscribers and revenues. Based on this trends, marketing activities will
clearly increase as well and support future growth. Despite of increasing
marketing costs in the middle-digit million Euros, management board still
expects a further increase in EBITDA to between EUR95 million and EUR100
million for 2015 as a whole.

Increase of dividend and confirmation of the dividend policy:
As a consequence of the positive development in the Company's business and
liquidity and in the expected cash flow, the Drillisch AG Management Board
is planning to submit a proposal for a cash dividend for business year 2014
of EUR1.70 per voting share to the next ordinary Annual General Meeting,
corresponding to an increase of 6.25% in comparison with the previous
year's dividend.

In line with our corporate policy that aims for sustainability, we strive
for a dividend of at least the same amount for the fiscal years 2015 and
2016.

This sustained increase is our way of involving our shareholders in the
positive development of our business over the long term.

Provisional performance indicators of Drillisch Group for 2014
<pre>

In EURm                                      2014      2013      Change in
%
Revenue                                      289.6     290.5     -0.3%
Service revenue                              284.6     277.2     +2.7%
Gross profit                                 142.6     119.0     +19.8%
Gross profit margin                          49.2%     41.0%
AGPPU average gross profit per user (MVNO)   6.47      6.23      +3.9%
(blended)
EBITDA                                       85.2      70.8      +20.3%
EBITDA margin                                29.4%     24.4%
Cash                                         317.7     187.0     +69.5%
Debenture bonds                              88.8      86.2      +3.0%
Financial liabilities                        0.0       0.0
Cash flow from current business activities   71.8      57.0      +26.0%
Subscribers (thousands)                      2.070     1.900     +8.9%
Thereof MVNO subscribers                     1.928     1.705     +13.1%
Thereof budget subscribers                   1.211     856       +41.5%
Thereof volume subscribers                   717       848       -15.4%


</pre>

Provisional performance indicators of Drillisch Group for Q4 2014
<pre>

In EURm                             Q4 14     Q4 13     Change in  Q3 14
                                                        %
Revenue                                 76.6      72.6  +5.6%          71.3
Service revenue                         74.8      70.0  +6.9%          70.2
Gross profit                            37.4      31.9  +17.1%         37.3
Gross profit margin                    48.7%     44.0%                52.3%
AGPPU average gross profit per          6.42      6.38  +0.6%          6.59
user (MVNO) (blended)
EBITDA                                  20.6      18.7  +10.3%         22.2
EBITDA margin                          26.9%     25.7%                31.2%


</pre>

The complete, audited Annual Report will be available from 20 March 2015 at
the following link:
http://www.drillisch.de/investor-relations/berichte

Maintal, 26 February 2015
Drillisch AG
The Management Board

Disclaimer: This report contains certain statements oriented to the future
which are based on the current assumptions and projections of the
management of Drillisch AG. Various risks, uncertainties and other factors,
both known and unknown, can cause actual developments, especially in the
results, financial position, and the business of our Company, to deviate
substantially from the projections about the future as they are  shown
here. The Company does not undertake any obligation to update such
future-oriented statements and to adapt them to future events or
developments. All of the above information is based on provisional
calculations prior to the final consolidation and the conclusion of the
audit. It is consequently possible that the final business figures
presented on 20 March 2015 will differ from those shown here.




Contact:


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


26.02.2015 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:     English
Company:      Drillisch AG
              Wilhelm-Röntgen-Straße 1-5
              63477 Maintal
              Germany
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:       Regulated Market in Frankfurt (Prime Standard); Regulated
              Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart
 
End of Announcement                             DGAP News-Service
 
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