DGAP-News: 1&1 Drillisch Aktiengesellschaft / Key word(s): Quarterly / Interim Statement/Forecast 1&1 Drillisch Aktiengesellschaft: Successful Start to the Year - Forecast 2018 confirmed 09.05.2018 / 06:45 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- 1&1 Drillisch AG - Successful Start to the Year - Number of customer contracts rises by 270,000 to 12.91 million - Revenues (IFRS 15) rise by 44.9% to EUR904.3 million (pro forma +16.4%) - EBITDA (IFRS 15) grows by 55.1% to EUR165.5 million (pro forma +16.7%) - Forecast 2018 confirmed Maintal, 09 May 2018 - 1&1 Drillisch AG (ISIN DE 0005545503) continued on its course of growth in the first quarter of 2018. The Company was able to increase further the number of customers, the revenues and the operating profit figures. In comparison with Q4 2017, the number of customer contracts in the current product lines across all customer groups rose by 270,000 to 12.91 million subscribers (Q4 2017: 12.64 million). In the mobile internet business, an additional 240,000 customer contracts were acquired, increasing the number of contracts to 8.54 million (Q4 2017: 8.30 million). DSL full-service bundles (ULL = unbundled local loop) rose by 30,000 contracts to 4.37 million (Q4 2017: 4.34 million). The Q1 2018 figures for revenues and profits have been strongly influenced by the initial consolidation of Drillisch and the positive changeover effects from the first-time application in the accounting of IFRS 15. The contrary development is seen in the expected lowering of profit from higher contract growth and the increased use of smartphones among new and current customers (no or only a low one-time payment by customers when concluding contracts and returns from higher rate plan prices over the terms of the contracts). IFRS 15 has positive effects on revenue (EUR79.8 million) while for the profit figures the IFRS 15 effects and the expenditures for the increased use of smartphones virtually cancel each other out. During Q1 2018, revenue rose in comparison with Q1 2017 by 44.9% from EUR624.2 million (previous accounting in accordance with IAS 18) to EUR904.3 million (accounting in accordance with IFRS 15). From the pro forma perspective (with the inclusion of Drillisch in the previous year), revenue rose by 16.4% from EUR777.1 million (previous accounting in accordance with IAS 18) to EUR904.3 million (accounting in accordance with IFRS 15). Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 55.1% from EUR106.7 million (previous accounting in accordance with IAS 18) to EUR165.5 million (accounting in accordance with IFRS 15). From the pro forma perspective (with the inclusion of Drillisch in the previous year), the EBITDA rose by 16.7% from EUR141.8 million (previous accounting in accordance with IAS 18) to EUR165.5 million (accounting in accordance with IFRS 15). The EBITDA of Q1 2018 includes EUR5.0 million in one-off expenditures from ongoing integration projects. The consolidated EBIT (earnings before interest and taxes) rose by 22.5% from EUR103.6 million (previous accounting in accordance with IAS 18) to EUR127.0 million (accounting in accordance with IFRS 15). From a pro forma perspective (with the inclusion of Drillisch from the previous year), the EBIT rose by 2.3% to EUR127.0 million. The one-offs mentioned above are also included in the EBIT. The lower percentage growth in comparison with the EBITDA results from the increased write-downs on purchase price allocations (so-called PPA write-downs) from the takeover of Drillisch in 2017. Ralph Dommermuth, CEO of 1&1 Drillisch, summarised the outlook for 2018: "Our most important performance indicators developed well in Q1 2018. We can confirm our forecast for the year 2018 as a whole. We continue to expect about 1.2 million new customer contracts, revenues of about EUR3.7 billion and an EBITDA of about EUR750 million." Performance indicators pursuant to IFRS - comparison Q1 2018 v. Q1 2017 In EURm Q1 2018 Q1 2017 Cha- Q1 2017 Pro Cha- (IFRS (IAS 18) nge forma* (IAS nge 15) 18) Revenue 904.3 624.2 +44- 777.1 +16- .9% .4% EBITDA 165.5 106.7 +55- 141.8 +16- .1% .7% EBITDA margin in % 18.3% 17.1% 18.3% EBIT 127.0 103.6 +22- 124.2 +2.- .5% 3% EBIT margin in % 14.0% 16.6% 16.0% Profit/loss per share in 0.48 0.60 -19- 0.47 +2.- euros .9% 1% Customer contracts in 12.91 8.72 +4.- 11.79 +1.- current product lines 19 12 (million) thereof mobile internet 8.54 4.45 +4.- 7.52 +1.- 09 02 thereof DSL/VDSL 4.37 4.27 +0.- 4.27 +0.- 10 10 *Pro forma perspective: With inclusion of Drillisch The interim report will become available on the Company's home page on 9 May 2018. https://www.1und1-drillisch.de/investor-relations/reports Maintal, 09 May 2018 1&1 Drillisch AG The Management Board Disclaimer: This report contains statements regarding the future which are based on the current assumptions and projections of the 1&1 Drillisch AG management. 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. Contact: Oliver Keil Head of Investor Relations Mail: [email protected] --------------------------------------------------------------------------- 09.05.2018 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. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- Language: English Company: 1&1 Drillisch Aktiengesellschaft Wilhelm-Röntgen-Straße 1-5 63477 Maintal Germany Phone: +49 (0)6181 412 218 Fax: +49 (0)6181 412 183 E-mail: [email protected] 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, Tradegate Exchange End of News DGAP News Service --------------------------------------------------------------------------- 683983 09.05.2018