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United Internet AG

EANS-Adhoc: Most successful year in company history for United Internet - Dividend of EUR 0.40 planned

  ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro
  adhoc with the aim of a Europe-wide distribution. The issuer is solely
  responsible for the content of this announcement.
25.03.2010
Montabaur, March 25, 2010. The Management Board of United Internet AG
(ISIN DE0005089031) today announced the audited consolidated results 
according to IFRS for the fiscal year 2009. There was a marked 
improvement in all the Group´s key financial figures compared to the 
previous year.
Group development
In its fiscal year 2009, consolidated sales of United Internet AG 
were up 5.6% on the previous year, from EUR 1,570.4 million 
(comparable prior-year figure after sale and deconsolidation of 
AdLINK Display Marketing business) to EUR 1,658.9 million. Ordinary 
earnings before interest, taxes, depreciation and amortization 
(EBITDA) improved by 12.4% from EUR 316.9 million to EUR 356.1 
million. Including non-recurring income of EUR 60.6 million from the 
sale of shares in freenet and Drillisch, EBITDA rose by 31.5% from 
EUR 316.9 million to EUR 416.7 million. Ordinary earnings before 
interest and taxes (EBIT) grew by 13.5% from EUR 264.3 million to 
EUR 300.0 million. After consideration of goodwill write-downs of 
EUR 6.4 million in 2008 and the above mentioned non- recurring income
from the sale of investments in 2009, EBIT grew by 39.8% from 
EUR 257.9 million to EUR 360.6 million. Earnings per share (EPS) 
increased from EUR -0.52 in the previous year (incl. EUR -1.20 from 
write-downs on investments and EUR -0.01 from discontinued 
operations) to EUR 1.22 (including EUR 0.47 from net positive special
items and EUR 0.05 from discontinued operations).
|Year-on-year comparison (in EUR    |2008        |2009        |Change      |
|million)                           |            |            |            |
|Sales                              |1,570.4     |1,658.9     |+ 5.6%      |
|EBITDA without special items       |316.9       |356.1       |+ 12.4%     |
|EBIT without special items         |264.3       |300.0       |+ 13.5%     |
|EBITDA                             |316.9       |416.7**     |+ 31.5%     |
|EBIT                               |257.9*      |360.6**     |+ 39.8%     |
* Incl. negative special items of EUR 6.4 million from goodwill 
write-downs in the Online Marketing segment
** Incl. positive special items of EUR 60.6 million from sale of 
shares
|Quarter-on-quarter comparison (in  |Q4 2008     |Q4 2009     |Change      |
|EUR million)                       |            |            |            |
|Sales                              |405.2       |434.1       |+ 7.1%      |
|EBITDA without special items       |68.0        |87.0        |+ 27.9%     |
|EBIT without special items         |54.5        |70.4        |+ 29.2%     |
|EBITDA                             |68.0        |97.4**      |+ 43.2%     |
|EBIT                               |48.1*       |80.8**      |+ 68.0%     |
* Incl. negative special items of EUR 6.4 million from goodwill 
write-downs in the Online Marketing segment ** Incl. positive special
items of EUR 10.4 million from sale of shares
Dividend
At the Annual Shareholders' Meeting on June 2, 2010, the Management 
Board will propose a dividend payment of EUR 90 million from the 
balance sheet profit disclosed for fiscal year 2009. On the basis of 
225 million shares with dividend rights at present, this corresponds 
to EUR 0.40 per share. This dividend comprises a regular amount of 
EUR 0.20 for 2009 plus a bonus dividend of a further EUR 0.20 for the
lack of dividend paid in the previous year due to high write-downs on
investments. The Supervisory Board has approved the proposed 
appropriation of profit.
Segment development
Thanks to a business model based overwhelmingly on electronic 
subscriptions, the dominant Product segment enjoyed further stronger 
growth - although the reduced spending of advertising customers was 
also noticeable in portal marketing during 2009. As expected, the 
Online Marketing segment was unable to escape the impact of the 
economic crisis and the resulting fall in advertising spending.
|Year-on-year comparison (in EUR    |2008        |2009        |Change      |
|million)                           |            |            |            |
|Product segment                    |            |            |            |
|Sales                              |1,432.8     |1,528.1     |+ 6.7%      |
|EBITDA                             |298.6       |339.0       |+ 13.5%     |
|EBIT                               |248.1       |285.2       |+ 15.0%     |
|Online Marketing segment           |            |            |            |
|Sales                              |136.9       |130.1       |- 5.0%      |
|EBITDA                             |11.0        |10.5        |-4.5%       |
|EBIT                               |9.2*        |8.5         |- 7.6%      |
* Without negative special items of EUR 6.4 million from goodwill write-downs
|Quarter-on-quarter comparison (in  |Q4 2008     |Q4 2009     |Change      |
|EUR million)*                      |            |            |            |
|Products                           |            |            |            |
|Sales                              |371.1       |405.2       |+ 9.2%      |
|EBITDA                             |62.8        |81.0        |+ 29.0%     |
|EBIT                               |50.0        |65.1        |+ 30.2%     |
|Online Marketing (continued        |            |            |            |
|operations)                        |            |            |            |
|Sales                              |34.0        |28.7        |-15.6%      |
|EBITDA                             |0.3         |3.7         |            |
|EBIT                               |-0.2*       |3.2         |            |
* Without negative special items of EUR 6.4 million from goodwill 
write-downs
Customer development
Including around 0.58 million freenet DSL customers, the number of 
fee-based customer contracts grew by 15.1% or 1.2 million contracts 
to 9.15 million in 2009.
|Customer contracts by product lines|31.12.2008  |30.09.2009  |31.12.2009  |
|in million                         |            |            |            |
|Information Management             |1.36        |1.52        |1.54        |
|Webhosting                         |3.62        |4.05        |4.14        |
|- thereof abroad                   |1.93        |2.14        |2.22        |
|Internet Access                    |2.97        |3.48        |3.47        |
|- thereof DSL                      |2.82        |3.32        |3.31        |
|   - thereof DSL complete packages |0.78        |1.69        |1.82        |
|   - thereof resale-DSL / T-DSL    |2.04        |1.63        |1.49        |
|Total                              |7.95        |9.05        |9.15        |
Status 30.09.2009 adjusted for contractually binding freenet customer
relations migrated at the end of the year
Outlook
An increase in consolidated sales of approximately 15% is expected 
for fiscal year 2010.
EBITDA is expected to remain at the high level of 2009 - despite 
expenses for the current quality drive and high development and 
marketing costs for new business fields and for further foreign 
expansion.
In order to fully exploit the identified growth business fields 
"Mobile Internet" and "Cloud Applications", United Internet will 
introduce a new segmentation for management and reporting purposes. 
The former segments, "Products" and "Online Marketing" will be 
discontinued and replaced from 2010 onward by the segments "Access" 
and "Applications".
"Access" comprises narrowband, broadband and mobile access products, 
including the corresponding applications.
"Applications" describes the company´s application business - 
ad-financed or via subscription fee. These applications include, for 
example, home pages and e- shops, Personal Information Management 
applications (e-mail, to-do lists, appointments, addresses), group 
work, online storage, and office applications. Also included are the 
operations of Sedo and affilinet.
|Financial figures acc. to new segmentation            |31.12.2009        |
|(in EUR million)                                      |                  |
|"Access" segment                                      |                  |
|Sales                                                 |1,026.7           |
|EBITDA                                                |124.1             |
|EBIT                                                  |118.3             |
|"Applications" segment                                |                  |
|Sales                                                 |631.5             |
|EBITDA                                                |225.4             |
|EBIT                                                  |175.4             |
end of announcement                               euro adhoc

Further inquiry note:

Marcus Schaps
Head of PR
United Internet AG
Elgendorfer Straße 57
56410 Montabaur
Telefon: 02602/96-1076
Telefax: 02602/96-1013
E-Mail: mschaps@united-internet.de
Internet: www.united-internet.de

Branche: Telecommunications Services
ISIN: DE0005089031
WKN: 508903
Index: Midcap Market Index, TecDAX, CDAX, HDAX, Prime All Share,
Technology All Share
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Hamburg / free trade
Stuttgart / free trade
Düsseldorf / free trade
Hannover / free trade
München / free trade

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