German operator Drillisch reported service revenue for 2015 up 52.4 percent to EUR 433.7 million and EBITDA up 23.9 percent to EUR 105.6 million. The results is in line with its earlier increased forecast for EBITDA of EUR 105 million. The company also boosted its dividend to EUR 1.75 per share.
It ended the year with 2.587 million customers at its MVNOs, up by 659,000 or 34.2 percent from a year ago. Drillisch said the growth came mainly in the "highly profitable" budget segment, where it added 721,000 customers for a total 1.932 million. The number of subscribers in the lower-margin volume segment declined to 655,000 from 717,000 at the end of 2014. The greater share of budget customers increased average gross profit per MVNO user (AGPPU) by 13.4 percent to EUR 7.34.
However, the EBITDA margin fell to 16.8 percent from 29.4 in 2014 following the takeover of the Phone House chain in Germany and a rise in advertising costs. EBIT fell to EUR 69.5 million from EUR 75.3 million. On a quarterly basis, service revenue rose by 60.7 percent to EUR 120.2 million, driven by the takeovers of Yourfone and the Phone House. EBITDA fell to EUR 17.4 million from EUR 20.6 million due to a sharp increase in marketing spend. The EBITDA margin amounted to 10.0 percent in Q4.
Drillisch confirmed its EBITDA target for 2016 of EUR 115-120 million. Growth is expected to come from a significant increase in its MVNO customer base and further improvement in its mix of rate plans. It aims to maintain the dividend at at least EUR 1.75, up from an earlier target fo EUR 1.70.
