Hugin Ad hoc announcement according to § 15 WpHG: Interim report: mobilcom AG: mobilcom sales growth to EUR 1 billion

Tuesday, 08. August 2006 08:00



- mobilcom group has boosted six-month sales to EUR 1,017 million
- Service Provider has boosted profitability considerably in Q2
- Negative impact on earnings due to as yet incomplete merger with
freenet

with freenet has also had a negative impact on the development in
earnings. Group EBITDA accordingly declined compared with the
previous year period to EUR 79.6 million (H1 2005: EUR 108.9
million). EBT in H1 also declined to EUR 62.9 million (H1 2005: EUR
84.4 million). Consolidated result for H1 2006 is stated as EUR 37.8
million (H1 2005: EUR 53.6 million). Despite high costs of marketing,
sales and tax payments of EUR 30.2 million in the Fixed
Network/Internet segment (paid in Q2 2006), liquid assets in the
group have increased to EUR 472.2 million (30 June 2005: EUR 371.2
million).


Mobile Telephony Service Provider has boosted profitability
Following a strong first quarter, user growth at the Mobile Telephony
Service Provider declined as a result of various factors, including
seasonal effects and a higher churn in the second quarter.
Accordingly, approx. 150,000 new customers were signed up (net) in H1
(H1 2005: -10,000). The mobile telephony user base is currently
running at 4.97 million and is virtually unchanged compared with the
previous quarter. Due to the decline in gross new customer growth to
294,000 in the second quarter (Q1 2006: 449,000), sales of EUR 640.8
million in the first half were virtually unchanged compared with the
previous year period (H1 2005: EUR 641.9 million). There was a very
positive development in average revenue per user (ARPU) in the second
quarter of 2006. It amounted to EUR 17.00 compared with EUR 16.30 in
the previous quarter. This positive development in ARPU as well as
the lower costs of acquiring new customers have had a very positive
impact on the development in earnings at the Mobile Telephony Service
Provider. Accordingly, EBITDA in Q2 almost doubled compared with the
previous quarter to EUR 21.4 million (Q1 2006: EUR 11.0 million);
together with an EBITDA margin of 6.8%, this is one of the best
quarterly results in the company's history (6.8% EBITDA margin).
Depreciation of EUR 3.0 million was slightly higher compared with the
previous quarter, resulting in an EBIT of EUR 18.4 million.


Fixed Network/Internet segment has boosted sales by more than 18%
In a market climate which continues to be difficult and competitive,
the division headed by freenet continues to expand.
Although the distortion of competition triggered off by the so-called
"Net Rental Model" had a considerably negative impact on the growth
of freenet in the important broadband market which has a promising
future, the first half was successful for the Fixed Network/Internet
segment. Accordingly, sales improved by more than 18% compared with
H1 2005 to EUR 376.4 million. In addition to the main sales driver
internet access, the Portal Business / Digital Services and B2B
Services segments made a major contribution to the positive
development in sales. With EBITDA of EUR 47.2 million in H1 (H1 2005:
EUR 68.4 million), the Fixed Network/Internet segment continues to be
very profitable.


Key financials of the mobilcom group
3-month and 6-month comparison:
Accounting method: IFRS

+-------------------------------------------------------------------+
| | H1 2006 | H1 2005 | Q2 2006 | Q2 2005 |
|---------------------------+---------+---------+---------+---------|
| Employees | 3,635 | 3,519 | 3,635 | 3,519 |
|---------------------------+---------+---------+---------+---------|
| External sales, | 1,017.3 | 960.2 | 495.3 | 509.6 |
| in EUR million | | | | |
|---------------------------+---------+---------+---------+---------|
| Service Provider | 640.8 | 641.9 | 315.5 | 333.0 |
|---------------------------+---------+---------+---------+---------|
| Fixed Network/Internet | 376.4 | 318.3 | 179.8 | 176.6 |
|---------------------------+---------+---------+---------+---------|
| EBITDA | 79.6 | 108.9 | 41.5 | 51.7 |
| in EUR million | | | | |
|---------------------------+---------+---------+---------+---------|
| Service Provider | 32.4 | 40.5 | 21.4 | 20.2 |
|---------------------------+---------+---------+---------+---------|
| Fixed Network/Internet | 47.2 | 68.4 | 20.1 | 31.6 |
|---------------------------+---------+---------+---------+---------|
| EBIT | 56.9 | 80.7 | 29.9 | 36.6 |
| in EUR million | | | | |
|---------------------------+---------+---------+---------+---------|
| Service Provider | 26.5 | 33.3 | 18.4 | 16.7 |
|---------------------------+---------+---------+---------+---------|
| Fixed Network/Internet | 30.4 | 47.4 | 11.6 | 19.9 |
|---------------------------+---------+---------+---------+---------|
| EBT | 62.9 | 84.4 | 33.1 | 38.5 |
| in EUR million | | | | |
|---------------------------+---------+---------+---------+---------|
| Consolidated result | 37.8 | 53.6 | 19.8 | 25.3 |
| EUR million | | | | |
|---------------------------+---------+---------+---------+---------|
| Earnings per share | 0.45 | 0.62 | 0.26 | 0.30 |
| in EUR | | | | |
|---------------------------+---------+---------+---------+---------|
| Mobile telephony | | | | |
| customers | 4.97 | 4.55 | 4.97 | 4.55 |
| in million | | | | |
|---------------------------+---------+---------+---------+---------|
| Thereof: Contract | | | | |
| customers | 2.70 | 2.51 | 2.70 | 2.51 |
| in million | | | | |
|---------------------------+---------+---------+---------+---------|
| Thereof: Prepaid | | | | |
| customers | 2.27 | 2.05 | 2.27 | 2.05 |
| in million | | | | |
|---------------------------+---------+---------+---------+---------|
| DSL customers | 830 | 525 | 830 | 525 |
| in '000 | | | | |
+-------------------------------------------------------------------+


Contact
Patrick Möller
Head of Public & Investor Relations
Tel.: 04331 69 1173
Email: ir@mobilcom.de



--- End of Ad-hoc Message ---
WKN: 662240; ISIN: DE0006622400; Index: CDAX, HDAX, Prime All Share,
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Related Links: MobilCom AG
Author:
Hugin
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