United Internet (UTDI) Company presentation summary

Group performance and financials

• Customer contracts increased by 700,000 to 29.72 million, with revenues up 1.9% to €6.10 billion and EBITDA up 2.4% to €1.28 billion.

• EBIT declined by 1.9% due to higher depreciation from network expansion; EPS rose 43% mainly from lower tax expenses.

• Free cash flow after leasing rose sharply to €320.6 million, driven by higher operating cash flow and lower capex.

• 2025 included €265.3 million start-up costs for the 1&1 mobile network and €696.7 million in depreciation.

• Outlook for 2026 targets revenues of ~€6.25 billion, EBITDA of ~€1.45 billion, and reduced capex of €600–650 million.

Business segments overview

• Access segment generated €4.10 billion in revenues and €521.5 million EBITDA, with a 12.7% margin; total contracts at 16.32 million.

• Consumer Access saw stable revenues but EBITDA fell 11.7% due to network rollout costs; mobile contracts declined, broadband grew.

• Business Access revenues rose 2.1% to €586.7 million, EBITDA up 1.3% to €167.2 million, with a 28.5% margin.

• Applications segment: Consumer Applications had €322.6 million revenues (+8.1%), €123.1 million EBITDA (+8.7%), and 42.03 million accounts.

• Business Applications (IONOS) posted €1.32 billion revenues (+5.5%), €464.1 million EBITDA (+19.8%), and 10.05 million contracts.

Strategic highlights and innovation

• 1&1 operates a modern 5G network using Open RAN, offering 10–30% higher energy efficiency and supporting future margin growth.

• IONOS is the largest web hosting provider in Europe, with 100% recurring revenues and a strong cloud and AI product portfolio.

• AI-powered solutions like the AI Phone Receptionist and modular AI ecosystem are gaining traction, enhancing customer productivity.

• Diversified portfolio with over 68 million accounts and a strong M&A track record exceeding €3.5 billion in investments.

• New segment structure in 2026: "Consumer & Small Business" and "Enterprises & Networks" after the sale of 1&1 Versatel.