Europolitan reports strong 15 months result wit pre-tax income of SEK 1 900

Europolitan reports strong 15 months result with pre-tax income of SEK 1 900 million 261 000 net customer additions Revenue of SEK 5 582 million Operating cash flow of SEK 2 450 million Acquisition of Ocom Affärsutveckling AB E-mail made available to all subscribers 2000 15 Months Report and Final Results At the extraordinary shareholders' meeting on October 22 1999, shareholders voted to change the financial year to April 1 to March 31. As a result of this decision, a 15 months Final Report is issued today. In this report the fifth quarter of the reporting period is compared to the first quarter both covering three months to March 31. To aid comparison of performance and to set the basis for future annual reporting, analyses of the results of the company for the twelve month periods to March 31 1999 and 2000 are included. In the text below 15 months results are given and 12 month period comparisons are also made. Customer Growth 15 months : Europolitan's customer base increased to 885 000 as of March 31 2000, including 171 000 active Europolitan EASY prepaid cards. A total of 261 000 new customers were added in the fifteen months, including 184 000 contract customers. During the fifth quarter 39 000 (42 000) customers were added, including 19 000 contract customers (22 000). 12 month comparison : A total of 219 000 new customers were added during the twelve months (192 000) including 163 000 contract customers (101 000). Revenue 15 months : Europolitan's consolidated fifteen months net sales and other operating income was SEK 5 582 million. Average monthly revenue per customer, excluding prepaid cards, was SEK 561. Average monthly revenue per customer, including prepaid EASY customers was SEK 477. 12 month comparison : Net sales and other operating income increased by 33% to SEK 4 659 million (SEK 3 516 million). Average monthly revenue per customer excluding prepaid cards increased by 1% to SEK 565 (SEK 557) reflecting the higher usage per customer offsetting reductions in calling rates. Including prepaid cards, average monthly revenue per customer decreased by 4% to SEK 479 (SEK 499) reflecting the larger proportionate share of prepaid users in the customer base and their lower average usage compared with contract customers. Operating Expenses and Profit 15 months : Operating expenses, excluding capitalised expenses for own use were SEK 3 664 million in the fifteen months. There was a significant increase in marketing activity in the final quarter of the period. In order to maintain subscriber growth, Europolitan matched the increased commissions its competitors were paying to dealers to connect new customers and also waived connection fees. Europolitan also increased its customer loyality activities in the fifth quarter. Marketing costs also increased during the quarter due to the activity levels and informing customers of new services and tariffs. After net financial expense of SEK 18 million, profit after financial items was SEK 1 900 million. After tax expense of SEK 534 million, net profit was SEK 1 366 million. 12 month comparison : Operating expenses, excluding capitalised expenses for own use were SEK 3 039 million (SEK 2 359 million) during the 12 months, the 29% increase being due to the higher number of customers, the high level of contract customer growth and higher depreciation cost resulting from enhanced network coverage and capacity. After net financial expense of SEK 11 million (SEK 49 million), profit after financial items was SEK 1 609 million (SEK 1 108 million). After tax expense of SEK 453 million (SEK 309 million), net profit was SEK 1 156 million (SEK 799 million). Capital Expenditures 15 months : Capital expenditure in the fifteen months amounted to SEK 1 019 million. 12 month comparison : Capital expenditure in the twelve months amounted to SEK 841 million (SEK 651 million). The increase reflects the company's objective of continuing to increase network capacity, coverage and quality and also to offer its customers the widest range and highest quality services available in the wireless environment. Liquidity and Financing 15 months : Cash flow after investing activities (free cash flow) amounted to SEK 1 214 million. There was no outstanding balance on the SEK 1.4 billion long-term debt facility from the majority shareholder Vodafone AirTouch Plc at March 31 2000. 12 month comparison : Cash flow after investing activities increased by 29% to SEK 1 020 million (SEK 790 million). Parent Company Results 15 months : The Group's parent company, Europolitan Holdings AB, had revenue in the fifteen months of SEK 32 million and posted a profit after financial items of SEK 1 293 million including group contribution of SEK 1 293 million. During the period it acquired 95% of the share capital of Doberman AB for a total consideration of SEK 11 million and 100% of the share capital of Ocom Affärsutveckling AB for SEK 60 million. The parent company's change in cash was an outflow of SEK 95 thousand. Net financing reduced by SEK 680 million. 12 month comparison : Europolitan Holdings AB had revenue in the twelve months of SEK 27 million (SEK 18 million) and posted a profit after financial items of SEK 1 292 million (loss of SEK 5 million). Both acquisitions detailed above took place in the period. Europolitan Holdings' change in cash was an outflow of SEK 12 thousand (inflow of SEK 8 thousand). Net financing reduced by SEK 490 million (SEK 600 million). ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/04/28/20000428BIT00220/bit0001.doc The full report http://www.bit.se/bitonline/2000/04/28/20000428BIT00220/bit0002.pdf The full report