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, Mobile network: 1 & 1 Drillisch share rises sharply: Telefonica offer paves the way for 1 & 1 Drillisch to become a new mobile operator | message, Forex-News, Forex-News
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Mobile network: 1 & 1 Drillisch share rises sharply: Telefonica offer paves the way for 1 & 1 Drillisch to become a new mobile operator | message

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, Mobile network: 1 & 1 Drillisch share rises sharply: Telefonica offer paves the way for 1 & 1 Drillisch to become a new mobile operator | message, Forex-News, Forex-News


, Mobile network: 1 & 1 Drillisch share rises sharply: Telefonica offer paves the way for 1 & 1 Drillisch to become a new mobile operator | message, Forex-News, Forex-News

In addition, new price conditions will apply retrospectively from July 2020, announced 1 & 1 Drillisch on Monday in Montabaur. The contract should be concluded in May.

“The agreement with 1 & 1 Drillisch ensures long-term planning security and significant sales and earnings contributions in the coming years. We are confirming our medium-term outlook,” said Telefonica Germany Markus Haas. Telefonica can therefore plan better with rental income and use its network to a greater extent. The proceeds from the national roaming agreement are to be reinvested in the company’s own network. The parties agreed not to disclose the amount of the deal.

The renewed partnership will transform the current MBA-MVNO (Mobile Bitstream Access – Mobile Virtual Network Operator) contract into a National Roaming Agreement (NRA) according to Telefonica. The new contract will initially be valid for five years and can be renewed twice. It includes 2G, 3G and 4G, but not the new 5G cellular standard, which 1 & 1 Drillisch intends to offer itself through new cellular towers.

Telefonica made an offer to its competitor back in October. However, the prices did not suit the company from Montabaur: Ultimately, according to 1 & 1 Drillisch, the EU Commission had to ask Munich to improve the offer from October. Telefonica, however, sees a compromise on both sides.

In the course of the requirements for the acquisition of E-Plus in 2014, Telefonica had undertaken to sell up to 30 percent of the network capacity to a competitor. The contract with Drillisch enables the conditions to be checked twice a year. 1 & 1 Drillisch had also negotiated with Deutsche Telekom and Vodafone, but now decided in favor of the Telefonica offer.

1 & 1 Drillisch is dependent on the shared use of a third-party network (national roaming) as long as it does not have enough mobile phone locations for sufficient area coverage. Cell phone users can connect to another network in areas where their network operator does not have their own antennas. The shared use is an interim solution until 1 & 1 Drillisch has built its own 5G cell phone masts.

The new offer results in a positive earnings effect of around 34 million euros for 1 & 1 Drillisch for the 2020 financial year. This should be posted as income relating to other periods in the current financial year. Before that, however, the company had reduced its forecast for earnings before interest, taxes, depreciation and amortization to 600 million euros due to “significant price increases” for the use of the Telefonica network, after a figure at the previous year’s level (683.5 million euros) had been expected was.

Regardless of this earnings effect, the Drillisch parent company United Internet announced on Monday based on preliminary figures that it had achieved earnings before interest, taxes, depreciation and amortization (ebitda) of 1.18 billion euros last year, adjusted for special effects. That is almost 5 percent less than in the previous year. However, high costs were incurred for booking out VDSL allotments that were no longer used, so that, including special items, an operating result of 1.05 billion euros was posted. The management then expects an Ebitda of 1.22 billion euros for 2021.

In terms of earnings, United Internet wants to add something after a slight growth in 2020. After 5.36 billion euros last year, sales are expected to rise to 5.5 billion euros in 2021. With around 25 million fee-based customer contracts, around 910,000 new ones were added last year.

At the subsidiary 1 & 1 Drillisch, sales rose last year, according to preliminary figures, by 3 percent to 3.79 billion euros. The analyst-focused service revenue rose by 2.6 percent to a good 3 billion euros. The adjusted Ebitda was, as forecast after the profit warning, at 600 million euros, after 1 & 1 Drillisch was able to show 12 percent more in the previous year. Including the special costs for booking VDSL contingents, the result (Ebitda) was 470 million euros.

For the current year, the Drillisch management around CEO Ralph Dommermuth now expects service sales of 3.1 billion euros, the adjusted Ebitda is expected to increase by around 8 percent to 650 million euros. The board did not make a forecast for the total annual turnover.

The 1 & 1 Drillisch share is currently increasing in XETRA trading by EUR 4.86 to EUR 22.44.

/ ngu / men

MNCHEN / MONTABAUR (dpa-AFX)

More news about 1 & 1 Drillisch AG

Image sources: 1 & 1 Drillisch



, Mobile network: 1 & 1 Drillisch share rises sharply: Telefonica offer paves the way for 1 & 1 Drillisch to become a new mobile operator | message, Forex-News, Forex-News

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