DEEN
Expansion of customer base
€12.0MN
Equity investment
€14MN
Revenue 2017 (EXP.)
100
Employees 2017

KEY FACTS AT A GLANCE

  • Objective: growth in broadband expansion and as a cable network provider
  • Expansion of the fibre-optic network continued
  • Clear increase in number of new customers each month; marked increase in revenues from private customers

DNS:NET INTERNET SERVICE GMBH

Investment by
DBAG ECF

€12.0mn

DBAG'S INTEREST

€5.0mn

GROWTH FINANCING
Shareholders:
DBAG ECF

35.7%

EQUITY SHARE BELONGING TO DBAG

14.9%

other shareholders

64.3%

First invested

SEPTEMBER 2013

REVENUES in €mn

 

11

 

2015

 

11

 

2016

 

14

 

2017 (EXP.)

As of 30 September 2017

4

times

as many households reached since the investment by DBAG ECF

PROFILE

DNS:NET was founded in 1998 in Berlin. Today, the company provides telecommunication and internet services for private and business customers using proprietary and leased fibre- optic network infrastructures. Its data centre services for business customers also make use of proprietary and leased infrastructures in high-security sites at key internet nodes.

POTENTIAL FOR DEVELOPMENT

Back in 2010, DNS:NET began investing in the expansion of broadband in thriving regions in the areas surrounding Berlin. Today, the company is the second-largest provider of VDSL connections in Brandenburg, where it is present in more than 300 locations and industrial estates. Since 2012, DNS:NET has also acted as a cable network operator and has provided its own fibre-optic network to numerous new-build residences in Berlin. DNS:NET intends to grow both of its business lines: the expansion of broadband into communities where this has been neglected until now; its offering to the housing industry, in the form of fitting fibre-optic connections in the home. Since capital was invested by DBAG ECF, DNS:NET has been able to quadruple the number of households that have used its services.

FINANCIAL YEAR 2017

In 2017, DNS:NET expanded its regional presence beyond the boundaries of Berlin and Brandenburg. The company won tenders to connect around 70,000 households and more than 1,000 companies and institutions to a high-performance fibre-optic network in Saxony-Anhalt. This allows it to benefit from state subsidies for broadband expansion in rural areas. DNS:NET expects revenues from private customers to be 40 percent higher than in the previous year. Earnings development is being hit by significant advance payments made in connection with sales.

OUTLOOK AND OBJECTIVES

In the coming financial year, the number of new customers attracted every month should increase considerably; the substantial investments made in the fibre-optic network in the past few years are to form the basis for this. Revenues and earnings are expected to exceed the level in 2017 considerably.

Responsible team member

Gustav Egger
Gustav Egger

Managing Director

Gustav Egger
Name:
Gustav Egger
Investment focus:
Expansion capital investment
Telephone:
+49 69 95787-300
E-Mail:

Gustav Egger

Managing Director

Gustav Egger joined Deutsche Beteiligungs AG in 1989 and has been a Managing Director since 1992.

After receiving his degree in Engineering Management with a major in Mechanical Engineering from the University of Berlin, he spent six years at Deutsche Bank focusing on the financing of large-scale international projects in infrastructure and the commodity sector as well as US-based cogeneration power plants.

His career at DBAG started in 1989 as an Investment Manager for 14 portfolio companies in a variety of sectors and he invested in the first privatisations after Germany's reunification. From 1992, as head of Central Investment Controlling, he organised and installed the risk monitoring processes for more than 120 portfolio companies spread over ten DBAG branch offices. In this position, he was also a member of the DBAG Investment Committee. From 1995, in his role as CFO, he additionally took on responsibility for Finance and Accounting. Along with DBAG's independence from Deutsche Bank which commenced in 1997, he negotiated the entry of new handpicked anchor shareholders and investors. Linked to that was the establishment of capital market communications and the first corporate actions. To accelerate DBAG's independence, he organised the placement of DBAG's first closed-end buyout fund for international investors. Subsequent to the successful fund-raising for DBAG Fund V and DBAG Expansion Capital Fund, he retired from his role as CFO and has since focused on the development of the expansion capital business. In that capacity, he is currently monitoring and supporting the portfolio companies in the telecommunications, information technology and media sectors.

Gustav Egger

Managing Director

+49 69 95787-300
gustav.egger@dbag.de