German Internet service provider United Internet (UI) remains optimistic about its earnings guidance, despite the 10 million euros ($14 million) estimated costs for the integration of the DSL business bought from rival Freenet.
"We want to repeat the record level EBIT and EBITDA of last year," Chief Executive Ralph Dommermuth told Reuters in an interview, repeating earlier statements. In 2008 the company posted earnings before interest tax depreciation and amortisation (EBITDA) of 318.8 million euros and EBIT of 256.6 million. "We will save money in the acquisition of new customers", he added. The price for Freenet's 700,000 customers for broadband Internet was "appropriate at the current time", he said. The deal has a price tag of 123 million euros. "It only costs us 40 to 50 million euros in cash, if we can build up working capital quickly," Dommermuth said. The company is also paying part of the price with its own shares.
Despite the Freenet deal, United Internet was still looking out for acquisition targets, Dommermuth said. "We still have cash, unutilised credit lines, 22 million of our own shares and we could even issue new shares." United Internet, which together with Drillisch has a 25.9 percent stake in Freenet, is not considering selling its shares at present.
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