euro adhoc: freenet.de AG
quarterly or semiannual financial statement /
freenet Q3/06 figures: significant DSL growth and solid results
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08.11.2006
Over 551 million euro in revenue for the 9 month period (+ 8% vs. same period 2005) All earnings metrics up versus prior quarter 75,000 new DSL customers in third quarter Target announced of 1 million DSL customers by yearend
Hamburg/freenet.de AG - freenet.de AG remains on track for growth in a highly competitive market environment. The third quarter of 2006 and the month of September in particular were impacted by the successful market launch of the new freenetDSL product "freenetKomplett", showing extremely positive trends. The number of freenet DSL customers (Deutsche Telekom infrastructure and direct line) rose to 905,000 total as of the end of the third quarter. DSL picked up 75,000 net new customers in the third quarter as compared to 55,000 for the previous quarter. "We see further growth ahead for the fourth quarter and are shooting for 1 million DSL customers by the end of the year", commented Eckhard Spoerr, CEO of freenet.de AG. freenet DSL profitability also improved, a main reason being a changed contract model with Deutsche Telekom AG. Third quarter revenues fell as bonuses for new customer recruitment were eliminated with these changes, while gross margins increased in parallel over the entire contract lifetime, thus improving freenet's long-term profitability outlook.
In the first nine months of the current year, revenues increased by over 41 million euros or eight percent year on year, to 551.4 million euros; 167.9 million euros were generated in the third quarter. The decline versus the previous and last year's same quarter (183.5 million euro and 185.7 euro million respectively) may be attributed in addition to the impact of the changed contract model with Deutsche Telekom AG, more restrained internet usage during the warm summer months. "Increasing revenues can be expected in the traditionally strong fourth quarter", said Spoerr.
freenet has been improving its profitability over the course of 2006, posting higher quarterly earnings across the board for Q3 2006: EBITDA margin expanded from 10.9 percent in Q2 quarter 2006 to 13.2 percent in Q3 2006. EBITDA was up 11 percent versus Q2/2006 (20 million euro) at 22.1 million euro. Pre-tax earnings (EBT) picked up more sharply to 16.1 million euro, up 31 percent versus Q2/2006 (12.3 million euro). Group result rose from 7.2 million euro in the second quarter of 2006 to 10.4 million euro in the third quarter, up 44 percent.
Cash and cash equivalents rose again in the 3rd quarter by 11.3 million euro to 186.1 million euro.
The first nine months of 2006 at a glance
|Financial data per IFRS; |Q3/2006 |Q2/2006 |Q3/2005 |Q1-Q3 2006|Q1-Q3 2005| |in TEUR /Source: | | | | | | |freenet.de AG | | | | | | |Revenues |167,874 |183,450 |185,656 |551,392 |510,191 | |Segment: Internet access | 79,468 | 90,868 | 82,173 |268,363 |246,236 | |Segment: Voice | 30,204 | 34,822 | 39,276 |102,610 |118,899 | |Segment: Portal business | 27,549 | 29,281 | 26,079 | 84,922 | 70,249 | |Segment: B2B services | 30,653 | 28,479 | 38,128 | 95,497 | 74,807 | |Gross profit | 67,770 | 67,383 | 78,267 |209,218 |229,736 | |EBITDA | 22,103 | 19,998 | 20,323 | 69,568 | 88,061 | |EBITDA (adjusted)* | | | 32,007 | | 99,745 | |Earnings before | | | | | | |taxes (EBT) | 16,131 | 12,305 | 12,190 | 48,467 | 60,592 | |Earnings before | | | | | | |taxes(EBT)(adjusted)* | | | 23,874 | | 72,276 | |Group result | 10,425 | 7,190 | 7,491 | 29,711 | 37,410 | |Cash and cash equivalents |186,125 |174,816 |134,962 |186,125 |134,962 | * adjusted for merger-related non-recurring expenses totaling 11.7 million euro.
end of announcement euro adhoc 08.11.2006 08:01:00
Further inquiry note:
Andreas Neumann
Investor Relations
Tel.: +49 (0)40 51306 778
E-Mail: IR@freenet-ag.de
Branche: Online
ISIN: DE0005792006
WKN: 579200
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