Q1 2004 Operating Profit

Turnover in Q1 2004 amounted to €17.36 million (€13.78 million). EBITDA increased by €0.53 million (€2.36 million), an increase of 29% over Q4 2003.

With an EBITDA of -€0.67 million (€1.84 million), there was an improvement of €0.49 million over Q4 2003. At -€1.09 million (€1.34 million), the operating profit was marginally worse than that of Q4 2003.

As previously announced, Q1, which falls short of the original strategic forecast, can be compensated for during the course of the fiscal year. 2004’s goal for the fixed line business still stands with an expected revenue of €100 million and stock profits of €1.

These goals will be achieved by:

 

    • initiation of the product push in June
    • growth via cooperation with Quelle
    • entry into internet telecommunications
    • completion of OneTel integration

 

The management’s proposals on all pertinent agenda items was passed with over 99% of the shareholders’ vote in the shareholders’ meeting of 13/05/2004. The board of directors will implement these resolutions as quickly as possible, so that the issuing of the new shares of stock (split 4:1) can take place shortly.

For queries:

3U TELECOM AG
Axel Becker
Tel.: +49 (0)6421 999-0
Fax: +49 (0)6421 999-1111
E-Mail: ir@3u.net

After a weak start this year, 3U anticipates growth via its cooperation with Quelle

3U has closed a deal with Quelle, Europe’s largest mail-order firm. Starting in the middle of this year, Quelle will offer its customers their own fixed line scheme (powered by 3U), a special carrier pre-selection offer intended for Quelle customers. 3U will handle the execution of this plan.

Due to this project, 3U anticipates a broad volume of sales and increase of income starting in the second half of this year, following its weak start.

3U was unable to reach its customary profit margin in Q1. Restructuring due to the integration of OneTel has once again severely hindered profits. Additionally, due to technical difficulties experienced by system technology suppliers, the implementation of new products was delayed. Also the adjustment of customer portfolios from OneTel has contributed to Q1’s resulting business volume being lower than had been expected. The results from Q1, which will be released in detail on 17/05/2004, will however fall short of expectations.

The promising cooperation with Quelle should provide for clear growth, and is capable of compensating for temporal adjustments made during the transformation and its planned provisions. By the end of Q2, 3U will be in a position to initiate an increase of organic growth with the implementation of further products and services. By then 3U should have once again reached its former market strength.

For queries:

3U TELECOM AG
Axel Becker
Tel.: +49 (0)6421 999-0
Fax: +49 (0)6421 999-1111
E-Mail: ir@3u.net