Marburg, 22 November 2007 – The third quarter of 2007 at the Marburg-based 3U HOLDING AG, which has been trading under this new name since 31 October 2007, continued to be shaped by the strategic reorientation of the company and the talks on the sale of the subsidiary LambdaNet Communications Deutschland AG. In line with the accounting provisions of the International Financial Reporting Standards (IFRS), in the third quarter of 2007 the sales revenues of LambdaNet and the subsidiaries in Austria and the USA, as so-called “held for sale” companies, were no longer included in the consolidated statements, but merely their aggregate book values and the results for the period.
Accordingly the consolidated revenues as of 30 September 2007 resulted solely from the core business fixed-line telephony. Following revenues of € 18.95 million adjusted for the “held for sale” effect in the second quarter of 2007, revenues in the third quarter of 2007 rose to € 20.03 million. As expected, the revenues in the third quarter of 2007 decreased by 8.5% in a year-on-year comparison, from a figure of € 21.90 million in the third quarter of 2006. In the first nine months of 2007 the 3U Group posted sale revenues amounting to € 57.31 million; this follows on from an adjusted figure of € 65.54 million in the corresponding period for the previous year. Thus the revenues are within the framework of the corporate planning for the 2007 business year.
The continued consistent orientation to earnings in the core business of fixed-line telephony is reflected in the results. The earnings before interest, taxes and depreciation and amortization (EBITDA) in the third quarter of 2007 rose by some 14.1% over the second quarter, from € 0.64 million to € 0.73 million. For the third consecutive time the EBITDA for the quarter is thus positive. In the first nine months of 2007 the EBITDA was € 1.53 million.
The result for the period in the core business fixed-line telephony has also developed pleasingly, improving in the first nine months of 2007 to € 1.06 million. Compared to the second quarter of 2007 it rose by 67% in the third quarter of 2007, from € 0.42 million to € 0.70 million. The quarterly result in the core business was positive for the second consecutive period therefore.
Thus as of 30 September 2007 both the EBITDA and the result from the core business fixed-line telephony were clearly higher than the corporate planning for the 2007 business year.
The consolidated result, which also reflects the earnings of LambdaNet, which is to be sold, and the foreign companies, continued to be depressed by the ongoing high level of depreciation at LambdaNet. The loss for the period at the 3U Group in the third quarter of 2007 was € 1.44 million, following on from a loss of € 0.82 million in the second quarter of 2007. As of 30 September 2007 the consolidated loss was € 4.44 million; this corresponds to a loss of € 0.09 per share.
The liquid and near-liquid funds as of 30 September 2007 amounted to € 33.18 million. The decline in liquid funds in a comparison with the figure as of 31 December 2006 (€ 38.83 million) is essentially due to the reclassification of the liquid funds at LambdaNet. Taking into account the liquid funds of LambdaNet the liquid and near-liquid funds as of 30 September 2007 only declined by € 1.14 million to € 37.69 million despite further repayments of € 4.07 million in the first nine months of the 2007 business year.
The equity capital ratio of the 3U Group improved compared to 31 December 2006 (38.51%) to 39.02% as of the cut-off date 30 September 2007.
The process of selling LambdaNet has not been completed. Against the background of the crisis on the American market for mortgage loans, which has led to reservation on the part of the banks towards awarding loans for investment financing, there is the possibility that the sale will be further delayed.
The detailed nine-month report will be published on 27 November 2007.
3U HOLDING AG
Neue Kasseler Str. 62F
phone: 06421/ 999-1200
fax: 06421/ 999-1998
Michael Schmidt, Roland Thieme, Oliver Zimmermann
Ralf Thoenes (Vorsitzender)
Amtsgericht Marburg HRB 4680