DGAP-News

United Internet AG: FY 2016 figures set new records in customer contracts, sales and earnings

DGAP-News: United Internet AG / Key word(s): Final Results/Forecast United Internet AG: FY 2016 figures set new records in customer contracts, sales and earnings 23.03.2017 / 07:05 The issuer is solely responsible for the content of this announcement. - Increase in customer contracts of 1.00 million to 16.97 million

- Sales up 6.3% to EUR 3.949 billion

- EBITDA grows by 11.0% to EUR 840.6 million and EBIT by 19.5% to EUR 647.2 million

- Operating EPS up 23.1% to EUR 2.13

- EPS after Rocket Internet value adjustment: EUR 0.88

- Dividend increased to EUR 0.80 per share

- Guidance 2017: increase of approx. 800,000 in customer contracts, sales growth of approx. 7%, EBITDA increase of approx. 12%

Montabaur, March 23, 2017. United Internet AG enjoyed further growth in its fiscal year 2016. The company once again posted strong improvements in customer contracts, sales, and operating earnings in 2016 and reached its targets.

At the same time, further heavy investments were made in the expansion of existing customer relationships and new customer acquisition. This enabled the company to raise the number of fee-based contracts organically by one million contracts (comparable prior-year figure: 930,000) and thus exceed its guidance (940,000 - 960,000 contracts). This customer growth was driven in particular by the Access segment, in which United Internet generated 920,000 new contracts (830,000 Mobile Internet contracts and 90,000 DSL contracts). In the Applications segment, a further 80,000 fee-based contracts and 1.14 million ad-financed free accounts were added.

Despite currency effects - especially from the British pound following the Brexit decision - consolidated sales rose by 6.3% (currency-adjusted: 6.8%) from EUR 3.716 billion to the new record amount of EUR 3.949 billion. This figure was thus within the guidance range (EUR 3.94 - EUR 3.96 billion).

In spite of stronger than planned customer growth and the related increase in customer acquisition costs, earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 11.0% (currency-adjusted: 11.8%), from EUR 757.2 million (comparable prior-year figure) to EUR 840.6 million. This figure was also within the expected range (EUR 835 - EUR 845 million). Earnings before interest and taxes (EBIT) increased by 19.5% (currency-adjusted: 20.5%), from EUR 541.7 million (comparable prior-year figure) to EUR 647.2 million. The key earnings figures stated above include one-off costs for major M&A projects in fiscal year 2016, especially the investment of Warburg Pincus in the Business Applications division and the takeover of Strato AG.