VERSATEL AG 
By This press release and the information it contains is not intended for distribution to or within the United
States of America, Canada, Japan or Australia.
PRESS RELEASE Versatel grows its core business
• Business segment maintains growth in third quarter
• Takeover by KKR secures refinancing and strengthens
Versatel's financial base
• Majority of Versatel shareholders accept takeover offer
Adjusted EBITDA was €4.3 million down on the prior-year
figure. In the third quarter of 2011, Versatel generated
adjusted EBITDA of €39.5 million compared with €43.8 million
in the same period a year earlier. The fall was due mainly to
the above-mentioned one-off revenues in the Wholesale
segment. The negative impact on earnings of the sharp decline
in revenues in the Mass Market segment was offset by the
positive effects of the transform restructuring programme and
similar increases in earnings in the Business segment.
Free cash flow was €3.8 million in the third quarter of 2011
and therefore €11.9 million down on the prior-year figure.
The decline is primarily attributable to exceptional items
related to the refinancing.
The voluntary takeover offer from VictorianFibre Holding
GmbH, a holding company controlled by funds advised by
Kohlberg Kravis Roberts & Co. L.P. (KKR), was accepted by the
majority of the Versatel shareholders. The motion to transfer
the shares held by the remaining shareholders to
VictorianFibre Holding GmbH as the majority shareholder in
return for appropriate cash compensation is likely to be
presented for resolution by the Versatel AG General Meeting
in the first quarter of 2012.
The Business segment posted revenues of €50.8 million in the
third quarter of 2011, an increase of €2.4 million or 4.9% on
the prior-year quarter. While revenues from traditional voice
business declined as expected, by €1.7 million or 10.9% year
on year, Versatel was able to lift broadband and VPN product
revenues by €1.7 million or 6.4%. Revenues in the remaining
areas of business, value-added services and other, increased
by €2.4 million or
37.2% compared with the prior-year quarter.
Joachim Bellinghoven, CEO of Versatel AG, says: "The positive
trend in revenues in our core VPN business confirms that the
corporate strategy is right and the action taken necessary
for Versatel's business performance in future quarters."
In the Wholesale segment, revenues dropped by 27.8% year on
year, from €63.7 million to
€46.0 million. This decline is primarily attributable to
voice revenues, which fell by €11.6 million or 28.9%.
The Mass Market segment generated revenues of €57.4 million
in the third quarter of 2011,
€12.6 million or 18.0% less than in the third quarter of
2010. This decline was driven by three factors: The cable
business sold by Versatel as of 31 July 2010 contributed
revenues of €8.3 million in the first half of the previous
year. In addition, the number of customers in the Mass Market
segment fell by roughly 78,000 contracts compared with the
adjusted prior-year figure. Furthermore, revenues continued
to fall as a result of the slight decline in monthly average
revenue per user (ARPU) compared with the prior-year
quarter.
The report for the third quarter 2011 is available from the
Investor Relations section of the
Versatel AG website, www.versatel.de.
Jana Wessel
+49 211 52283-254 jana.wessel@versatel.de
Andrea Winzen
+49 211 52283-124 andrea.winzen@versatel.de
Q3 | Q3 2010 | Change | ||
2011 | Q3 2010 | Change | ||
Revenues | (€m) | 154.2 | 182.1 | -15.4 % |
Business | (€m) | 50.8 | 48.4 | 4.9 % |
Wholesale | (€m) | 46.0 | 63.7 | -27.8 % |
Mass Market | (€m) | 57.4 | 70.0 | -18.0 % |
Gross profit (adjusted) | (€m) | 80.4 | 87.8 | -8.5 % |
EBITDA (adjusted) | (€m) | 39.5 | 43.8 | -9.7 % |
EBITDA magin (adjusted) | 25.6 % | 24.0 % | 1.6 %-Pkte | |
Depreciation, amortisation and impairment | (€m) | -31.0 | -39.9 | -22.3 % |
EBIT | (€m) | 6.9 | 2.9 | 138.9 % |
Net profit/(loss) | (€m) | -6.5 | -6.2 | -5.3 % |
Earnings per share | (€) | -0.15 | -0.14 | -5.3 % |
Capital expentiture | (€m) | 16.7 | 25.0 | -33.2 % |
Free cash flow | (€m) | 3.8 | 15.7 | -75.7 % |
Number of employees at reporting date | 1,091 | 1,265 | -13.8 % | |
broadband contracts | (k) | 582.2 | 660.2 | -11.8 % |
Versatel AG is a listed company (ffm: VTW) and one of the
leading providers of telephone, Internet and data services
for private and business customers on the German market. In
the
financial year 2010, the company achieved an overall turnover
of 725 million euros. Thus, Versatel is the third largest
alternative, infrastructure-based telecommunications provider
in Germany. The company has a state-of-the-art, high-capacity
optical fibre network of more than 45,000 kilometres.
This communication is not an offer of securities for sale in the United States. No securities of the Company have been nor will be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and no securities may be offered, sold or otherwise transferred in the United States absent registration or an exemption from registration under the Securities Act. There will be no public offering of securities in the United States.
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