FY 2014 figures set records in customer contracts, sales and earnings
- Sales up 15.4% to EUR 3.065 billion
- EBITDA grows by 35.5% to EUR 551.5 million, EBIT by 37.9% to EUR 430.6 million
- EPS improves by 36.4% to EUR 1.46
- Additional EUR 186.1 million one-off income from Versatel acquisition and portfolio optimization (EPS effect: EUR +0.82)
- Dividend increased to EUR 0.60 per share
- Guidance 2015: approx. 800,000 new contracts, approx. 20% sales growth, approx. 40% increase in EBITDA
Montabaur, March 25, 2015. United Internet AG is continuing its growth trajectory. The company once again posted strong improvements in sales, customer contracts and key earnings ratios in 2014 and reached its targets. At the same time, the company made further heavy investments in new customer acquisition, the expansion of existing customer relationships, and new business fields. In addition to these operating foundations, United Internet acquired an equity stake in Rocket Internet AG in fiscal year 2014 and ensured further potential with the complete takeover of Versatel as of October 1, 2014 – and with it ownership of Germany’s second-largest fiber-optic network.
“United Internet can look back on a very successful year,” commented Ralph Dommermuth, CEO of United Internet, with regard to the figures for 2014. “And with the investments made in customer relationships, company acquisitions and investments in 2014, we have also widened the foundation for future growth.”
Development of the Group
United Internet invested heavily in new customer relationships in 2014. Organic growth in fee-based customer contracts amounted to 910,000 while a further 420,000 contracts were added from the Versatel takeover. All in all, the number of fee-based customer contracts rose by 1.33 million to 14.78 million. The number of ad-financed accounts grew by 610,000 to 32.12 million in the reporting period.
Consolidated sales reached a new all-time-high of EUR 3.065 billion in 2014 – representing year-on-year growth of 15.4%. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 35.5% to EUR 551.5 million, and earnings before interest and taxes (EBIT) by 37.9% to EUR 430.6 million. Earnings per share (EPS) improved by 36.4% to EUR 1.46.
These figures include sales and earnings contributions from the initial consolidation of Versatel (4th quarter 2014) of EUR 130.6 million to revenue, EUR 33.3 million to EBITDA, EUR 0.9 million to EBIT and EUR -0.01 to EPS.
Free cash flow improved by 82.7% to EUR 386.6 million in 2014.
| Group development (in EUR million) | 2013(1) | 2014(2) | Change |
|---|---|---|---|
| Sales | 2,655.7 | 3,065.0 | +15.4% |
| EBITDA | 406.9 | 551.5 | +35.5 |
| EBIT | 312.2 | 430.6 | +37.9% |
| EPS (in EUR) | 1.07 | 1.46 | +36.4% |
| Free cash flow(3) | 211.6 | 386.6 | +82.7% |
(1) EBITDA, EBIT, free cash flow 2013 adjusted retrospectively due to new mandatory accounting standard
(2) Without one-off income from Versatel acquisition and optimization of investment portfolio
(3) Free cash flow is defined as net cash inflows from operating activities, less capital expenditures, plus payments from disposals of intangible assets and property, plant and equipment
One-off income
Earnings were also influenced by additional one-off income from the Versatel takeover and the optimization of the investment portfolio, especially the contribution of the GFC/EFF funds to Rocket Internet. In total, this one-off income amounted to EUR 186.1 million of EBITDA and EBIT, as well as EUR 0.82 of EPS. Including this one-off income, EBITDA amounted to EUR 737.6 million, EBIT to EUR 616.7 million and EPS to EUR 2.28.
Dividend
At the Annual Shareholders' Meeting on May 21, 2015, the Management Board and Supervisory Board will propose a dividend of EUR 0.60 per share (prior year: EUR 0.40).
Outlook
United Internet AG will continue to pursue its policy of sustainable growth in future. For 2015, the company expects the number of fee-based customer contracts to grow by approx. 800,000. Consolidated sales are likely to rise by approx. 20%. An increase of approx. 40% is expected for EBITDA (adjusted prior-year figure without one-off income: EUR 551.5 million).