DGAP-News: freenet AG / Key word(s): Quarter Results/Interim Report freenet AG increases revenue and result in third quarter 05.11.2013 / 18:00 --------------------------------------------------------------------- - Group revenue rises by about 4 percent to 789.6 million euros (previous year: 756.5 million euros) - Customer ownership increases by more than 3 percent to 8.67 million (previous year: 8.38 million) - Group result increases by around 30 percent to 63.6 million euros (previous year: 49.0 million euros) - Earnings per share rise to 1.40 euros in the first nine months (first nine months of 2012: 1.02 euros) Büdelsdorf, 5 November 2013 - freenet AG today published its interim report for the third quarter of 2013 and confirmed its outlook for financial years 2013 and 2014. In the third quarter, the company generated Group revenue of 789.6 million euros (previous year: 756.5 million euros). Unlike last year GRAVIS, Germany's leading digital lifestyle provider for Apple products, and MOTION TM, a leading online retailer in the mobile communications and telecommunications sector, contributed fully to the quarterly revenue figures. With revenue contribution of 781.6 million euros (previous year: 741.1 million euros) mobile communications remained the dominant business segment in the Group. Thus, the first nine months of the current financial year saw an increase in Group revenue to 2,374.5 million euros (first nine months 2012: 2,269.6 million euros). 'Customer ownership', a key performance indicator for high-value customer relationships in the freenet Group's mobile communications business, was increased by 0.287 million year-on-year to 8.67 million (previous year: 8.38 million). This increase was seen primarily (+0.184 million) in the no-frills sector, whose very price-conscious customers are mostly reached with discount brands through online sales channels. The especially valuable postpaid customer base also showed a positive year-on-year development, growing by 0.104 million. Average monthly revenue per postpaid user (postpaid ARPU) was 22.6 euros in the third quarter (previous year: 23.6 euros). In relation to the overall decrease in the German mobile communications market, it therefore proved comparatively stable. At 3.5 euros (previous year: 3.9 euros) the no-frills ARPU was also down year-on-year, due to continued price pressure in the German mobile communications market. Third-quarter gross profit was on par with the previous year at 181.6 million euros (previous year: 182.3 million euros). This brought gross profit for the first nine months of 2013 to 531.5 million euros (previous year: 519.7 million euros), which is mainly due to the continued expansion of the range of products and services in the mobile communications/digital lifestyle area. All in all, Group EBITDA (earnings before interest, taxes, depreciation and amortisation) remained stable at 92.6 million euros (previous year: 92.5 million euros). Based on the first three quarters of the current financial year, this results in EBITDA of 263.0 million euros (previous year: 263.2 million euros). 'We want to effectively secure our strong position in the fast-paced competitive environment, as well as our high level of profitability, while continuing to develop growth segments,' says freenet AG CEO Christoph Vilanek. 'In the third quarter we made some important new strategic decisions to achieve this.' Depreciation and amortisation in the third quarter were down by 23.0 million euros to 14.0 million euros (previous year: 37.0 million euros). This is almost exclusively due to the expiry, on 31 December 2012, of the amortisation of intangible assets related to the purchase price allocation in connection with the debitel acquisition in financial year 2008. The change in income taxes, from tax income of 3.2 million euros in Q3/2012 to tax expenses of 5.2 million euros during the quarter under review, is also related to this. Consequently, Group result for the quarter under review increased by around 30 percent to 63.6 million euros (previous year: 49.0 million euros), which is equivalent to earnings per share of 0.50 euros (previous year: 0.38 euros). Group result for the first nine months came to 179.2 million euros, an increase of approximately 37 percent over the previous year's figure of 131.2 million euros. Earnings per share generated in the first three quarters of 2013 increased accordingly to 1.40 euros (previous year: 1.02 euros). Free cash flow* for the quarter under review amounted to 74.9 million euros (previous year: 71.9 million euros). This increase is mainly due to higher year-on-year cash flow from operating activities. In the first nine months, free cash flow thus amounted to 201.6 million euros (previous year: 195.9 million euros). 'Based on the good results of the third quarter, we confirm our forecast for financial years 2013 and 2014,' says freenet AG CFO Joachim Preisig. Accordingly, for financial years 2013 and 2014 the Executive Board continues to expect a slight increase in the customer ownership base (postpaid and no-frills customer base), a key indicator for the company, while postpaid ARPU is expected to remain stable at around 23 euros. For financial year 2013, an increase in Group revenue is expected with a further slight increase in 2014. The company is aiming for Group EBITDA of 355 million euros in 2013 and of 360 million euros in 2014 and free cash flow of 255 million euros and of 260 million euros respectively. The full interim report on the third quarter of 2013 is available for download from the freenet AG website: www.freenet-group.de/investor, and the conference call will be webcast on the site on 6 November from 14:00 CET. *Free cash flow is defined as cash flow from operating activities, minus investments in property, plant and equipment and intangible assets, plus proceeds from the disposal of property, plant and equipment and intangible assets. End of Corporate News --------------------------------------------------------------------- 05.11.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: freenet AG Hollerstraße 126 24782 Büdelsdorf Germany Phone: +49 (0)40 51306-778 Fax: +49 (0)40 51306-970 E-mail: [email protected] Internet: www.freenet-group.de ISIN: DE000A0Z2ZZ5, DE000A1KQXU0 WKN: A0Z2ZZ , A1KQXU Indices: TecDAX Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 237897 05.11.2013