United Internet AG Reports Solid Start to Fiscal Year 2024

United Internet AG announced a positive start to the fiscal year 2024, with significant growth in customer contracts and a steady increase in EBITDA. By the end of the first quarter, the company increased its customer contracts by 200,000, bringing the total to 28.65 million. This growth occurred across various segments, with notable additions in both Consumer and Business Applications.

The company's revenue saw a modest rise of 2.2% to EUR 1.565 billion, attributed mainly to the reduction in low-margin hardware sales. Despite this, EBITDA experienced a healthier increase of 7.3%, reaching EUR 342.1 million. This was influenced by planned expenses for the development of 1&1's mobile network.

However, EBIT faced challenges due to increased depreciation from significant investments in 1&1 Versatel’s fiber-optic and 1&1’s mobile networks, with a slight EBIT reduction to EUR 187.0 million from EUR 188.6 million. Earnings per share also declined from EUR 0.43 to EUR 0.35, impacted by lower results from associated companies and increased financial costs.

Looking ahead, United Internet confirms its 2024 guidance, expecting sales to reach about EUR 6.5 billion and EBITDA to grow to approximately EUR 1.42 billion. The company also anticipates a 10-20% increase in cash capex compared to the previous year.