13.08.2014
United Internet AG DE0005089031
DGAP-Adhoc: Successful first six months of 2014 for United Internet
United Internet AG / Key word(s): Half Year Results
13.08.2014 18:37
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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- Sales up 11.7% to new all-time high of EUR 1.434 billion
- EBITDA grows 35.7% to EUR 237.6 million, EBIT up 49.5% to EUR 193.5
million
- EPS improves 53.5% to EUR 0.66
- Customer figures guidance for full year increased
Montabaur, August 13, 2014. Figures published today for the first six
months of 2014 reveal that United Internet AG is continuing its growth
trajectory as Europe's leading internet specialist. There were further
strong improvements in sales, the number of customer contracts and key
earnings ratios. At the same time, the company once again made heavy
investments in new customer acquisition, the expansion of existing customer
relationships, and new business fields - thus cementing the basis for
future growth.
Development of the Group
In the first six months of 2014, consolidated sales of United Internet AG
were increased to the new record level of EUR 1.434 billion - representing
growth of 11.7% over the first half of the previous year.
There was also a further rise in United Internet's customer figures in the
first six months with the addition of 420,000 contracts, taking the total
to 13.64 million customer contracts.
This customer growth was primarily driven by the Access segment where the
company gained 250,000 Mobile Internet contracts and 120,000 DSL contracts.
A marketing campaign for 1&1 DSL premium tariffs was conducted in this
segment during the first half of 2014. As part of the campaign, new and
existing customers (when changing to a premium tariff) were able to opt for
the addition of a heavily subsidized (or even free) brand-name tablet.
Costs of approx. EUR 20.6 million incurred during the campaign were
directly expensed in the first six months of 2014. These investments will
already have a positive impact on segment earnings in the second half of
the year.
In the Applications segment, the company made changes to sales and
marketing measures for its Business Applications - as previously announced
- during the reporting period. As part of this change, there was less focus
on new customer acquisition in the first six months of 2014 (+50,000
contracts in the entire segment) and more focus on the expansion of
business with existing customers. The success of this measure is clearly
illustrated by strong year-on-year growth in segment revenue (+9.8%), due
in part to the first-time sales of 170,000 new top-level domains (nTLDs).
As a result of increasing contribution margins and reduced advertising
spending, start-up losses in new business fields (De-Mail and 1&1
MyWebsite) and for the "E-Mail made in Germany" initiative were reduced to
EUR 23.8 million in the first half of 2014 (prior year: EUR 61.8 million).
At Group level, earnings before interest, taxes, depreciation and
amortization (EBITDA) rose by 35.7%, from EUR 175.1 million to EUR 237.6
million, and earnings before interest and taxes (EBIT) by 49.5%, from EUR
129.4 million to EUR 193.5 million. Earnings per share (EPS) improved by
53.5%, from EUR 0.43 in the previous year to EUR 0.66.
The free cash flow position underlines the entire Group's ability to
generate very healthy levels of cash while at the same time achieving
strong qualitative growth. At EUR 154.2 million, this figure was well above
the prior-year level (EUR 85.9 million).
Group development (in EUR million) HY 2013 HY 2014 Change Sales 1,283.0 1,433.6 + 11.7% EBITDA 175.1 237.6 + 35.7% EBIT 129.4 193.5 + 49.5% Free cash flow* 85.9 154.2 + 79.5% EPS (in EUR) 0.43 0.66 + 53.5%* Free cash flow is defined as net cash inflows from operating activities, less capital expenditures, plus payments from disposals of intangible assets and property, plant and equipment With the figures for customer contracts, sales and earnings achieved in the first six months of 2014 and the investments already made, United Internet is well on track to meet its targets. Against this backdrop, the company is raising its guidance for the full year 2014 and now expects the number of fee-based customer contracts to grow by around 900,000 (previously: >800,000). Despite the related increase in costs for customer acquisition, the company's earnings guidance remains unchanged: after start-up losses in new business fields and advertising costs for the "E-Mail made in Germany" initiative, EBITDA is expected to improve to around EUR 520 million (prior year: EUR 407.2 million). Earnings per share are likely to be between EUR 1.40 and EUR 1.50 (prior year: EUR 1.07). As previously announced, sales are expected to rise by around 10%. Contact Marcus Schaps Head of Press and Public Relations United Internet AG Elgendorfer Strasse 57 56410 Montabaur Germany Tel: +49 2602/96-1076 Fax: +49 2602/96-1013 E-mail: [email protected] Internet: www.united-internet.de 13.08.2014 The DGAP 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: United Internet AG Elgendorfer Straße 57 56410 Montabaur Germany Phone: +49 (0)2602 / 96 - 1100 Fax: +49 (0)2602 / 96 - 1013 E-mail: [email protected] Internet: www.united-internet.de ISIN: DE0005089031 WKN: 508903 Indices: TecDAX Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard); Freiverkehr in Düsseldorf, Hamburg, Hannover, München, Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------
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