03.05.2016
freenet AG DE000A0Z2ZZ5
DGAP-News: freenet AG showing robust Q1 business performance, with further growth in customer ownership and stable postpaid ARPU
DGAP-News: freenet AG / Key word(s): Interim Report/Quarter Results
freenet AG showing robust Q1 business performance, with further growth in
customer ownership and stable postpaid ARPU
03.05.2016 / 18:24
The issuer is solely responsible for the content of this announcement.
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freenet AG showing robust Q1 business performance, with further growth in
customer ownership and stable postpaid ARPU
- Clear increase in own customer base (customer ownership) to 9.37
million (previous year: 9.04 million)
- Positive development of postpaid ARPU to 21.5 euros (previous year:
21.1 euros)
- EBITDA increase to 89.1 million euros (previous year: 86.0 million
euros)
- Free cash flow* increase to 64.9 million euros (previous year: 62.2
million euros)
- Confirmation of the guidance for financial year 2016
Büdelsdorf, 03 May 2016 - freenet AG [ISIN DE000A0Z2ZZ5] today published
its interim report for Q1 2016, confirming the guidance for financial year
2016.
In the first quarter of 2016, the company generated Group revenue of 749.2
million euros (previous year: 748.5 million euros). The further increase of
revenues from the postpaid business as well as the sales contributions by
Media Broadcast Group, which has been included in the consolidated
statements for the first time (18 March 2016 through 31 March 2016),
compensated for the reduction in fees for premiums and commissions compared
to the same quarter last year (on the earnings side, fully compensated on
the expenses side). These are largely due to a lower gross number of new
customers.
The Gross profit amounted to 192.2 million euros (previous year: 191.4
million euros), equivalent to a current gross profit margin of 25.7 percent
(previous year: 25.6 percent). With revenue of 727.4 million euros, the
mobile communications segment still dominated within the Group (previous
year: 734.6 million euros).
Customer ownership - combining the postpaid and no-frills customer groups -
constitutes a significant internal control parameter and recorded a
significant increase compared to the same quarter last year, by around
331,000 subscribers or by 3.7 percent to 9.37 million (previous year: 9.04
million). This increase was largely due to the number of postpaid
customers, which had increased once again. The portfolio of this customer
group, summarising all mobile communications agreements with 24-months
terms sold by the Group, increased above-average on a year-on-year basis,
by around 260,000 subscribers or by 4.3 percent to 6.36 million (previous
year: 6.10 million). The no-frills customer segment, which comprises all
mobile communications tariffs sold through the Group's discount brands,
also recorded an increase, i.e. by 71,000 subscribers or by 2.4 percent to
3.01 million (previous year: 2.94 million).
With its strategic focus on valuable customer relationships in terms of
customer acquisition and the management of existing customers , freenet AG
was again able to continue the positive development of the monthly average
revenue per contract customer (postpaid ARPU) in the first quarter of 2016.
Compared to the same quarter last year, the postpaid ARPU increased by 0.4
euros to 21.5 euros (previous year: 21.1 euros). With 2.4 euros, monthly
average revenue per customer generated in the no-frills customer segment
was on the same level as last year. With 2.9 euros, monthly average revenue
per prepaid customer (prepaid ARPU) in the first quarter 2016 exceeded the
result of the same quarter last year (2.6 euros).
"The once again positive development of the number of customer ownership
and most of all, of the postpaid business, confirms our strategy in the
mobile communications core business. At the same time, by acquiring EXARING
AG and the Media Broadcast Group, we have laid the foundation for further
developing our digital lifestyle portfolio with TV products", says
Christoph Vilanek, CEO of freenet AG.
Group earnings before interest, taxes, depreciation and amortisation
(EBITDA) increased compared to the same quarter last year by 3.1 million
euros to 89.1 million euros (previous year: 86.0 million euros). Group
earnings of 51.3 million euros were 4.9 million euros below those of the
same quarter last year (previous year: 56.2 million euros). In addition to
increased depreciation and amortisation, this is primarily also due to
increased other expenses as well as interest income. Earnings per share
amount to 0.41 euros (previous year: 0.44 euros).
The increase in depreciation and amortisation by 6.2 million euros to 21.7
million euros (previous year: 15.5 million euros) is the result of an
expanded portfolio of software, licenses, and rights of use in connection
with the purchase price allocation from the investment in EXARING AG and
the acquisition of the Media Broadcast Group.
Other operating expenses have increased compared to the same quarter last
year by 7.4 million euros to 78.9 million euros (previous year: 71.5
million euros). The rise is mainly due to the acquisitions and the increase
in the percentage of outsourced services in line with the reduction in
personnel expenses.
Interest income in the reporting quarter amounted to -11.7 million euros
(previous year: -9.5 million euros). Net interest, which has increased by
2.1 million euros compared to the same quarter last year, is primarily due
to refinancing the latest company acquisitions.
In the first quarter 2016, free cash flow increased by 2.6 million euros to
64.9 million euros (previous year: 62.2 million euros). This is due to the
cash flow from current operating activities, which has slightly increased
compared to last year (+1.4 million euros).
"Based on the very robust business development in the first quarter 2016,
we confirm our guidance from early March for financial year 2016.
Especially the highly sustainable generation of free cash flow likewise
enables us to confirm our dividend commitment of 1.60 euros per no-par
share for 2016", says Joachim Preisig, CFO of freenet AG.
For financial year 2016, the company continues to aim for a moderate
increase in Group revenue, an EBITDA of slightly above 400 million euros
and a free cash flow of around 300 million euros. As before, we expect
further contributions to EBITDA and free cash flow from our recent
investment in Sunrise Communications Group AG. The targets for the
development of the performance indicators postpaid ARPU and customer
ownership in financial year 2016 remain unchanged. The company continues to
expect the postpaid ARPU to stabilise on the 2015 level and a slight
increase in the number of customers in customer ownership compared to
financial year 2015.
The complete interim report for Q1 2016 is available at
www.freenet-group.de/investor, where the Conference Call will be streamed
on 04 May 2016 from 10:00 am CEST via webcast.
* Free cash flow is defined as cash flow from current business operations,
reduced by investments in property, plant and equipment and intangible
assets, plus deposits from the retirement of intangible assets and
property, plant and equipment.
Investor Relations contact:
freenet Aktiengesellschaft
Investor Relations
Deelbögenkamp 4c
22297 Hamburg
Tel.: 040 / 513 06 778
Fax: 040 / 513 06 970
Email: [email protected]
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03.05.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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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: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart; Terminbörse EUREX
End of News DGAP News Service
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