1&1 Drillisch AG Company Profile and Outlook
1&1 Drillisch AG is a listed stock corporation and one of the large network-independent telecommunications providers in Germany. The Company provides its customers with a comprehensive portfolio of services and products from the fields of DSL, mobile voice and data services. The core business of 1&1 Drillisch Group is telecommunications and is essentially conducted by the wholly-owned subsidiaries Drillisch Online AG ("Drillisch Online"), Maintal, and 1&1 Telecommunication SE ("1&1"), Montabaur. Drillisch's primary activity is the marketing of postpaid and prepaid products in the networks of Telefónica and Vodafone as well as landline and DSL products, including the related applications (such as home networking, online storage, telephony, video on demand or IPTV).
The Group has a total workforce of about 2.860 associates. In FY 2017, we realised revenues of €2,812.3 million (2016: €2,430.1 million).
Despite the investments in customer growth, the adjusted consolidated EBITDA from the continued operation (earnings from the continued operation before interest, taxes, depreciation and amortisation) increased by €144.3 million (37.2%) to €532.2 million in fiscal year 2017 (2016: €387.9 million). The adjusted EBITDA margin from the continued operation rose to 18.9% (2016: 16.0%).
1&1 Drillisch in an excellent position to take the next steps in the Company’s development and is looking ahead to the future with confidence. 1&1 Drillisch is planning an increase of about 1.2 million in the number of customer contracts subject to charge. Growth drivers are coordinated brand management, higher marketing budgets and the significantly increased offering of smartphones (mostly without initial additional payment) in sales via GMX and WEB.DE as well as for the 1&1 Drillisch discount brands (smartmobil.de, yourfone, winSIM and others). These measures will affect both new and current customers.
In concrete terms, we expect an increase in revenue to about €3.7 billion (2017: €2.8 billion) in 2018. The adjusted EBITDA has been targeted to rise to about €750 million (2017: €532.2 million). Moreover, we would like to increase substantially the use of smartphones at reduced prices (mostly without an initial additional payment) for all of the major brands. This goal includes both new and current customers. The expected additional investments in hardware totalling about €300 million will be refinanced by higher mobile service rates within the contractual minimum terms.