MONTABAUR (dpa-AFX) - United Internet AG (UDIRF.PK) reported that its Earnings before interest and taxes or EBIT rose by 9.8% to 705.9 million euros in the fiscal year 2017 from 642.7 million euros in 2016. The lower percentage growth compared to EBITDA results from increased purchase price allocation or PPA amortization from the takeovers of Drillisch and Strato.
EBIT was also improved by extraordinary result of 273.7 million euros in total. There was an opposing effect for this item from the trademark writedowns of a Group subsidiary totaling 20.7 million euros.
Earnings before interest, taxes, depreciation and amortization or EBITDA rose by 17.3% to 979.6 million euros in the fiscal year 2017 from last year. This figure was impacted by new earnings contributions from Strato, ProfitBricks and Drillisch, as well as - with an opposing effect - by regulation effects and costs for the Telef?nica DSL migration, and negative currency effects.
Earnings per share from continued operations rose to 3.38 euros from 2.27 euros in the previous year.
Consolidated sales grew by 10.5% to 4.206 billion euros from 3.808 billion euros in the prior year. Revenue contributions from Strato, ProfitBricks and Drillisch were offset in part by burdens on sales from regulation effects (international roaming /termination fees) and negative currency effects.
At the Annual Shareholders' Meeting on May 24, 2018, the Management Board and Supervisory Board will propose an increase in the dividend, from 0.80 euros per share in the previous year to 0.85 euros.
Approximately 1.2 million new DSL and mobile internet contracts are expected to be added in 2018. Key growth drivers for the Consumer Access business will be coordinated branding, increased marketing budgets, and much greater use of subsidized smartphones (mostly without initial additional payment), also when sold via GMX and WEB.DE, as well as the 1&1 Drillisch discount brands (smartmobil.de, yourfone, winSIM etc.). This affects both new and existing customers. Further growth is also anticipated for the Business Access and Business Applications divisions in 2018.
Sales of United Internet according to IFRS 15 are expected to reach about 5.2 billion euros in fiscal year 2018, compared to 4.21 billion euros reported in 2017. Consolidated EBITDA of about 1.2 billion euros is anticipated.
Copyright RTT News/dpa-AFX