Expansion of customer base
€15.0MN
Equity investment
€18MN
Revenues 2018
125
Employees 2018

KEY FACTS AT A GLANCE

  • Objective: growth in broadband expansion
  • Expansion of the fibre-optic Network is being continued, focusing from now on on direct connections in customers’ homes
  • Significant growth in newly acquired customers per month, significant increase in revenue expected from private customers

DNS:NET INTERNET SERVICE GMBH

Investment by
DBAG ECF

€15.0mn

DBAG'S INTEREST

€6.3mn

GROWTH FINANCING
Shareholders:
DBAG ECF

37.5%

EQUITY SHARE BELONGING TO DBAG

15.7%

other shareholders

62.5%

First invested

SEPTEMBER 2013

REVENUES in €mn

 

11

 

2016

 

14

 

2017

 

18

 

2018

As of 31 December 2018

4

times

as many households reached since the investment by DBAG ECF

We are confident that by investing in high-performance broadband connectivity a premium product can be created and, with that, a unique market position. We now want to support the company in taking the next step in its development through our expansion capital.

GUSTAV EGGER
MANAGING DIRECTOR

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 and 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 and the equipment of newly built residences in Berlin. The capital invested by DBAG ECF has allowed DNS:Net to quadruple the number of households in its reach.

FINANCIAL YEAR 2018

In 2018, DNS:Net further increased the number of new customers acquired each month. The company has invested in its sales organization in order to continue to benefit from the growing demand for fast Internet connections. DNS:Net expects revenues from private customers to be around 40 percent higher than in the previous year. The development of earnings will continue to be influenced by significant advance payments for network expansion and the strengthening of sales.

OUTLOOK AND OBJECTIVES

The number of new customers acquired each month is to be further increased in the new financial year. This growth will be based on extensive investments in the fibre-optic network and contracts already concluded with customers who will not be connected to the network until 2019 and 2020. Revenues and earnings are expected to exceed the level in 2018 considerable.

Responsible team member

Gustav Egger
Gustav Egger

Managing Director

Gustav Egger
Name:
Gustav Egger
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.

Current portfolio companies

Dns:Net Internet Service GmbH Inexio Informationstechnologie und Telekommunikation KGaA

Former portfolio companies

Gustav Egger

Managing Director

+49 69 95787-300
gustav.egger(at)dbag.de