Broadnet AG
Broadnet publishes its report on the first quarter of 2006
Ad hoc announcement transmitted by DGAP – a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Ad-hoc Announcement pursuant to § 15 of the WpHG (German Securities Trading
Act)
Broadnet publishes its report on the first quarter of 2006
– 50% increase in revenues: During the first quarter of 2006, Broadnet
reported sales of EURO 12,091,000, an impressive jump from the figure
reported in the prior year quarter (Q1 2005: EURO 8,067,000).
– Broadnet almost tripled operating income, EBITDA, for the first quarter
of 2006 (EURO 1,506,000) over the prior year figure, which was adjusted
for an extraordinary item (Q1 2005: EURO 1,562,000; adjusted to EURO
525,000)
– Expansion of private and small-business customer base – Appealing to
more customers in the ADSL2+ Technology segment and expansion of the
corresponding infrastructure
Hamburg, May 11, 2006 – Broadnet (Prime Standard, ISIN DE0005490866)
reported sales revenues of EURO 12,091,000 for the first quarter of fiscal
year 2006. This represented an impressive increase of almost 50% over
revenues during the same period last year (Q1 2005 revenues: EURO
8,067,000). When compared to the EUR 10,611 million of sales revenues
posted during the fourth quarter of 2005, this increase in revenues
represents substantial growth of 14%. At the same time, Broadnet reported a
strong improvement in EBITDA: Compared to the prior year quarter the
operating income of EURO 1,506,000 in the first quarter of 2006 (Q1 2005:
EURO 1,562,000, or EURO 525,000 after adjusting for an extraordinary item
totaling EURO 1,037,000, which consisted of other operating income freed up
from debt that no longer has to be serviced and from the reserves
originally set up to cover such debt), almost tripled.
The improvement was primarily attributable to additional growth in sales
revenues in the strategic product segments, Voice over IP and VPN, which
was achieved without proportionate increases in costs.
For the first quarter of 2006, the Group reported EBIT of minus EURO
291,000, versus minus EURO 889,000 in the fourth quarter of 2005 and minus
EURO 531,000 in the first quarter of 2005. With a net loss of EURO 60,000
for the period, it almost reached the break-even point.
On March 31, 2006, Broadnet had cash and cash equivalents totaling EURO
23,058,000. Compared to the same date last year (March 31, 2005: EURO
21,464,000), cash and cash equivalents rose by 7%, or EURO 1,594,000. The
funds outflow totaling EURO 773,000 during the first quarter of 2006 was
used almost entirely on annual prepayments, primarily to Deutsche Telekom.
A periodic payment method would have resulted in positive free cash flow in
the first quarter of this year.
On the Balance Sheet date, Broadnet’s shareholders’ equity totaled EURO
40,649,000 (3/31/05: EURO 42,456,000) and it again reported a high equity
ratio of 82%.
The Company’s most important financial highlights are contained in the
following table of key corporate figures:
Key corporate figures:
In EURO 000 Q1 2006 Q4 2005 Q1 2005
Sales revenues 12,091 10,611 8,067
EBITDA 1,506 1,024 1,562
EBIT (291) (889) (531)
Earnings per share (in EURO; (0.004) (0.042) (0.017)
undiluted)
Gross cash flow 1,513 29 1,664
Cash and cash equivalents 23,058 23,831 21,464
Fixed Assets 21,179 21,979 22,179
Short-term liabilities 9,120 8,366 5,756
Shareholders’ equity 40,649 40,700 42,456
Total assets 49,842 49,249 48,766
Number of employees as of the 197 192 208
Balance Sheet date
Broadnet’s Board of Directors is very pleased with the way fiscal year 2006
has started out and the results achieved thus far. In addition to the fact
that the Voice over IP and VPN products have exhibited dynamic growth, as
expected, the consistent use of the existing distribution channels and
efforts to appeal to all customer segments through product bundles and
specific solutions designed to meet individual needs have improved the
Company’s already outstanding market position. The Company’s emphasis
continues to be on solutions for business customers. With its ADSL2+
products, Broadnet is mainly targeting consumers, home offices and smaller
companies (SoHo – Small Office/Home Office). In addition, by offering SDSL
solutions with up to 8 Mbit/s, we appealed to smaller and medium-sized
companies with our high data transmission rates and symmetrical bandwidth.
Thus, Broadnet’s products cover all target groups and customer segments.
Prospects for the remainder of fiscal year 2006
Broadnet has already presented its 2006 goals along with the recently
published 2005 Annual Report – growth of at least 25% in sales revenues,
accompanied by a corresponding increase in EBITDA. The trends during the
first quarter of 2006 already clearly show this Company’s outlook for the
rest of fiscal year 2006; as the market leader in technological
innovations, Broadnet believes that it is exceedingly well-positioned to
achieve these targets.
For additional information, please refer to the quarterly report for the
first quarter of 2006, which was published today.
Contact:
Broadnet AG
Ties Kaiser
Manager Corporate Communications
Phone: +49 40 66 86 10 640, e-mail: t.kaiser@broadnet.de
(c)DGAP 11.05.2006
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Language: English
Issuer: Broadnet AG
Weidestr. 122a
22083 Hamburg Deutschland
Phone: +49 (0)40 66 8610-0
Fax: +49 (0)40 66 8610-122
email: info@broadnet.de
WWW: www.broadnet.de
ISIN: DE0005490866
WKN: 549086
indices: CDAX, PRIMEALL, TECHALLSHARE
Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin-Bremen, Stuttgart, München, Hamburg, Düsseldorf
End of News DGAP News-Service
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