Drillisch has ended the first half of this year with strong results and increased the major performance indicators in comparison with the same period last year. Total revenues rose by EUR 111.8 million to EUR 253.6 million (H1 2014: EUR 141.8 mln). Growth in the first quarter was essentially due to the increase in the number of subscribers but the brokerage and hardware revenues from The Phone House Deutschland Group acquired at the beginning of May made a positive contribution in the second quarter, especially in 'Other revenues', which rose by EUR 51.1 million to EUR 53.3 million.
Service revenues also rose in comparison with the same period last year, to EUR 200.3 million from EUR 139.6 million. In the second quarter alone, there was an increase of EUR 9.4 million to EUR 104.8 million from EUR 95.4 million in the first quarter.
Gross profit in the first half of the year increased by 51.7 percent to EUR 103.2 million. Despite the continued high level of advertising expenditure of EUR 25.4 million (H1 2014: EUR 4.7 mln), EBITDA adjusted for costs related to acquisitions improved by 30.1 percent to EUR 55.1 million. The adjusted EBITDA margin reached 21.7 percent, down from 29.9 percent in H1 2014.
At the end of the first half, the MVNO subscriber base had grown by 512,000 subscribers (28.2%) year-on-year to 2.327 million. While the number of volume subscribers declined by 94,000 to 698,000, the figure for the more profitable budget subscribers rose by 606,000 (59.2%) to 1.629 million. These figures represent another increase in the positive development of the customer mix of recent quarters, Drillisch said. In the second quarter alone, organic growth of 132,000 budget subscribers was achieved. The total subscriber base per 30 June was up by 472,000 subscribers or 23.9 percent to 2.449 million.
The operational start-up of Drillisch as a mobile bitstream access MVNO on the Telefonica network took place as scheduled on 01 July. Among other advantages, Drillisch now has unrestricted access to 4G as well as to any more sophisticated technology developed in future, and can perform the same role in the design and marketing of its products as a network operator. In addition, about 100 of its own Yourfone shops had been opened by early July.
In view of its stronger market position as a MBA MVNO and the development of the operating business in the first half of the year, Drillisch expects a continued rise in the MVNO customer base and related positive earnings development in 2015 and 2016. The adjusted EBITDA for this year is expected to reach the upper part of the previously forecast range of between EUR 95 million and EUR 100 million. The management board expects an increase in the adjusted EBITDA to EUR 115-120 million for the fiscal year 2016.
