PrimaCom AG i.I.
Ad hoc-Service: PrimaCom AG Englisch
Ad hoc-announcement edited and sent by DGAP.
The sender is responsible for the contents of this announcement.
——————————————————————————
PrimaCom Reports Third Quarter and Nine Month Results 1999
Revenue increases 11.8% over proforma 1998 results. EBITDA Margin remains steady
at 52.3% despite increased spending on new internet and digital video products
and services. Company expects to have 45,000 upgraded, “Ready for Service” homes
by year end 1999.
Mainz, Germany, November 22, 1999 – PrimaCom (NASDAQ: PCAG) (Neuer Markt
Frankfurt: PRC, WKN: 625910) reported financial results for the third quarter
and nine months ended September 30,1999.
Third Quarter Results
Revenues for the third quarter were approximately TDM 50,400, an increase of
11.8% over pro forma 1998 third quarter revenues of approximately TDM 45,000.
Earnings before extraordinary items, interest, taxes, depreciation and
amortization (EBITDA) were approximately TDM 26,300 for the period, compared to
the pro forma EBITDA of TDM 26,400 reported for the 1998 third quarter. The
Company’s 1999 third quarter EBITDA margin was 52.3%.
Commenting on these results, Mr. Jacques Hackenberg, Chief Executive Officer,
stated “In the third quarter PrimaCom continued its transition from a cable TV
operator to a full service broadband telecommunications company. Over the past 6
months we have assembled a formidable team of 25 professionals dedicated to
developing new internet and video products and services that we began offering
to subscribers in Leipzig in late September. During this period we were able to
post respectable EBITDA results and to successfully negotiate cable company
acquisitions that were completed subsequent to the end of the quarter.”
For the third quarter, the company incurred an operating loss of TDM 3,100,
compared to the 1998 third quarter pro forma operating loss of TDM 2,400. This
increase is primarily attributable to higher depreciation and amortization
expenses and increased Deutsche Telekom signal fees relating to escalation
clauses.
Interest expense for the period was TDM 5,800 a significant decline over the
TDM 14,100 for the comparable 1998 period. This brought the Company’s third
quarter net loss to TDM 9,300 or (DM 0.47) per diluted share, compared to the
net loss of TDM 20,800 reported for the pro forma 1998 third quarter.
Mr. Hackenberg stated: “Third quarter operating performance reflected a
13.7% year over year increase in PrimaCom’s average subscriber base to 906,852
and, as anticipated, a decrease in the average monthly revenue per customer
resulting from the lower average revenue rates of subscribers added through
acquisitions. At the same time, we incurred significant expenses and investments
related to the accelerated upgrade of our cable televisionnetwork and the start
up of PrimaCom’s high speed internet access and digital video products.”
Nine Month Results
For the nine months ended September 30, 1999, the Company reported revenues of
approximately TDM 152,300 and EBITDA of approximately TDM 80,339. The EBITDA
margin was 52.8%. PrimaCom’s operating loss was TDM 7,200 and the Company
incurred a net loss of TDM 33,200 or (DM 1.75) per diluted share for the nine
month period.
Outlook
“Looking ahead”, Mr. Hackenberg said “PrimaCom continues to be well positioned
as a consolidator in the German cable television business. So far this year, we
have purchased networks that added approximately 44.000 subscribers to our
customer base. Our acquisition strategy has taken on a more regional focus. We
have several bids outstanding for significant cable operations, but it is
difficult to predict any closing dates. Importantly, PrimaCom has been selected
for the second round of bidding for certain of Deutsche Telekom’s regional cable
TV operations. We have completed our due diligence and submitted our second
round offer.” Mr. Hackenberg added.
The customer demand for our internet and digital video service hat been quite
strong and we intend to continue to expand this area at an accelerated pace,”
Mr. Hackenberg said. “We expect the number of PrimaCom upgraded “ready for
service” homes to increase to 45,000 by 1999 year end, which has the potential
to translate into a five-fold increase in the number of internet customers under
contract. We view this as an extremely fast growing market and we expect to have
approximately 200,000 homes “ready for service” by the end of the year 2000,”
Mr. Hackenberg noted.
PrimaCom is the third largest private cable-TV-Operator in Germany with a nation
wide market share of approximately 4.6%. The market share in the new German
states is approximately 18%. The company came into existence in December 1998
through the merger of Süweda Elektronische Medien- und Kommunikations AG, Mainz
and KabelMedia Holding AG, Frankfurt, to German cable-tv- operators of equal
size. Since its IPO in February 1999 PrimaCom is listed at the Frankfurt Neuer
Markt and at the Nasdaq National Market. The Company has approximately 430
employees.
PrimaCom will file its Quarterly Report with the SEC and the Frankfurt stock
Exchange this afternoon.
Contact: Jacques Hackenberg, Vors. des Vorstandes Tel.: ++49-6131-9310.101
Paul Thomason, Vorstand (Finanzen) Tel.: ++49-6131-9310.101
Alexander Hoffmann,
Direktor Inv. Relations: Tel.: ++49-6131-9310.150
e-mail: alexander.hoffmann@primacom.de
Homepage: www.primacom.de
End of Message
Latest News
Latest Reports
No Reports found
Upcoming Events
No Events found
Webcasts
No Webcasts found