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Drillisch AG posts substantial increase in profit and growth in subscriber base in Q1

DGAP-News: Drillisch AG / Key word(s): Quarter Results/Forecast
Drillisch AG posts substantial increase in profit and growth in
subscriber base in Q1

12.05.2015 / 21:25

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Drillisch AG posts substantial increase in profit and growth in subscriber
base in Q1
- Service revenues +36.3% to EUR95.4 million (Q1 2014: EUR70.0m)

- Gross profit +45.1% to EUR47.8 million (Q1 2014: EUR32.9m)

- EBITDA +31.2% to EUR26.9 million (Q1 2014: EUR20.5m)

- MVNO subscribers +26.6% to 2.229 million (Q1 2014: 1.760m)

- Of which budget subscribers +58.2% to 1.497 million (Q1 2014: 946,000)

- Average gross profit per MVNO user (AGPPU) +13.1% to EUR7.23 (Q1 2014:
EUR6.39)

Maintal, 12 May 2015 - Drillisch AG (ISIN DE 0005545503) has posted an
excellent start to the year 2015 and has once again increased its earning
power in comparison with the same period of the previous year.

Development of subscriber base continues to be positive:
During Q1 2015, the MVNO subscriber base grew compared with Q1 2014 by
26.6% (469,000 subscribers) to 2.229 million (Q1 2014: 1.760 million).
While the number of volume subscribers declined by 82,000 to 732,000 (Q1
2014: 814,000), the figure for the significantly more profitable budget
subscribers rose by 58.2% (551,000) to 1.497 million (Q1 2014: 946,000).
The positive development of the customer mix of recent quarters represents
a continuation of that positive development. As per 31 March 2015, the
total subscriber base grew by 22.0% (426,000 subscribers) to 2.361 million
(Q1 2014: 1.935 million).

Significant improvement in profit as service revenue rises:
Including service revenue of EUR95.4 million (Q1 2014: EUR70.0m), gross
profit increased by EUR14.9 million (45.1%) to EUR47.8 million (Q1 2014:
EUR32.9m). The gross profit margin improved by 2.0% to 48.2% (Q1 2014:
46.2%). Despite the sharp rise in advertising expenditures to EUR12.4
million (Q1 2014: EUR2.0 million), the consolidated EBITDA, one of the most
important performance indicators of the business, rose by EUR6.4 million
(31.2%) to EUR26.9 million in comparison with the same period of the
previous year (Q1 2014: EUR20.5 million). The EBITDA margin came to 27.1%
(Q1 2014: 28.8%).

Excellent development of cash flow from current business activities:
Cash flow from current business activities grew substantially in comparison