BUEDELSDORF (dpa-AFX) - Freenet AG (FRAGF.PK), in its interim report for the first-quarter 2016, said that Group earnings for the quarter declined to 51.3 million euros from the previous year's 56.2 million euros. Earnings per share amount to 0.41 euros, down from 0.44 euros last year. In addition to increased depreciation and amortisation, this was primarily also due to increased other expenses as well as interest income.
Group earnings before interest, taxes, depreciation and amortization or EBITDA for the quarter increased to 89.1 million euros from 86.0 million euros in the prior year.
'Based on the very robust business development in the first quarter 2016, we confirm our guidance from early March for financial year 2016. Especially the highly sustainable generation of free cash flow likewise enables us to confirm our dividend commitment of 1.60 euros per no-par share for 2016', said Joachim Preisig, CFO of freenet AG.
Group revenue for the first-quarter was 749.2million euros, up from 748.5 million euros in previous year. The further increase of revenues from the postpaid business as well as the sales contributions by Media Broadcast Group, which has been included in the consolidated statements for the first time (18 March 2016 through 31 March 2016), compensated for the reduction in fees for premiums and commissions compared to the same quarter last year. These are largely due to a lower gross number of new customers.
Customer ownership - combining the postpaid and no-frills customer groups - constitutes a significant internal control parameter and recorded a significant increase compared to the same quarter last year, by around 331,000 subscribers or by 3.7 percent to 9.37 million. This increase was largely due to the number of postpaid customers, which had increased once again.
The portfolio of this customer group, summarising all mobile communications agreements with 24-months terms sold by the Group, increased above-average on a year-on-year basis, by around 260,000 subscribers or by 4.3 percent to 6.36 million.
For financial year 2016, the company continues to aim for a moderate increase in Group revenue, an EBITDA of slightly above 400 million euros and a free cash flow of around 300 million euros. As before, the company expects further contributions to EBITDA and free cash flow from its recent investment in Sunrise Communications Group AG. The targets for the development of the performance indicators postpaid ARPU and customer ownership in financial year 2016 remain unchanged. The company continues to expect the postpaid ARPU to stabilise on the 2015 level and a slight increase in the number of customers in customer ownership compared to financial year 2015.
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© 2016 AFX News
