United Internet (UTDI) Q1 2025 earnings summary

Executive summary

• Revenue increased 4.2% year-over-year to €1,630.8 million in Q1 2025, with EBITDA stable at €342.6 million and EBIT down 12.9% to €162.9 million due to higher network rollout and depreciation costs.

• Net customer contracts rose by 150,000 to 29.17 million, with growth in Business and Consumer Applications offsetting a decline in Consumer Access.

• EPS declined from €0.35 to €0.31, reflecting reduced EBITDA and higher network investment costs.

Financial highlights

• Revenue reached €1,630.8 million (+4.2% YoY); EBITDA was €342.6 million (+0.1% YoY); EBIT fell 12.9% to €162.9 million.

• CapEx was €122 million, down from €139.7 million year-over-year.

• Free cash flow was negative at €-165.8 million, down from €-142.9 million, mainly due to higher capex and phasing effects.

• Net bank liabilities increased 8.8% to €2,937.2 million; equity ratio improved to 46.7%.

• Gross margin decreased from 34.0% to 31.9% as cost of sales ratio rose to 68.1%.

Outlook and guidance

• Full-year 2025 revenue guidance upgraded to approximately €6.45 billion (previously €6.4 billion), with EBITDA expected at €1.35 billion.

• CapEx (excluding M&A) projected at around €800 million, mainly for network and fiber expansion.

• Guidance excludes the Energy business, which is due to be sold.

• Management remains optimistic, citing a stable subscription-based business model and ongoing investments in growth.