United Internet (UTDI) Q2 2026 earnings summary

Executive summary

• Achieved 550,000 net new customer contracts, reaching 30.27 million total contracts in H1 2026, driven by strong growth in IONOS (+500,000) and Mail & Media (+190,000), while 1&1 contracts declined by 140,000 due to tariff realignment and reduced low-cost offerings.

• Revenue grew 3.3% year-over-year to €3,090.9 million in H1 2026, with EBITDA up 5.1% to €676.0 million and EBIT up 20% to €342.4 million, reflecting improved margins and lower depreciation.

• EPS from continued operations increased 59.6% to €0.75, primarily due to lower tax expenses.

• Free cash flow after leasing surged by 416.7% to €129.7 million.

• Strategic focus on AI-driven products, eSIM rollout, and conversion of free to pay accounts.

Financial highlights

• Fee-based customer contracts grew by 0.96 million to 30.27 million; ad-financed free accounts increased by 0.13 million to 38.44 million.

• Cash flow from operating activities rose 22.7% to €492.0 million; free cash flow after leasing at €129.7 million, up €100 million year-over-year.

• Capex was €283.6 million, down from €297.0 million in H1 2025.

• Gross margin improved to 32.4% (from 32.2% YoY); EBITDA margin rose to 21.9%.

• Equity ratio stable at 43.4%; total assets €12,072.4 million.

Outlook and guidance

• Full-year 2026 guidance confirmed: sales expected at approx. €6.25 billion and EBITDA at approx. €1.45 billion.

• Cash capex forecasted at €600–650 million, down from €730.8 million in 2025.

• H2 EBITDA expected to accelerate, driven by IONOS customer monetization and 1&1 network expansion.

• Management remains optimistic about achieving guidance, citing a stable subscription-based business model.