United Internet (UTDI) Q3 2025 earnings summary

Executive summary

• Fee-based customer contracts increased by 480,000 to 29.50 million in the first nine months of 2025, driven by growth in Consumer and Business Applications, while Consumer Access contracts declined.

• Revenue rose 1.4% year-over-year to €4.5 billion, with EBITDA up 1.9% to €966.4 million, despite higher network rollout costs.

• EBIT declined 11.3% to €443.2 million due to increased depreciation and amortization from network investments.

• EPS improved by €0.03 to €0.75 per share, supported by better performance from associates and lower tax expenses.

• Major milestones include the completion of the 1&1 customer migration to its own network and the disposal of the energy and AdTech (Sedo) businesses, now classified as discontinued operations.

Financial highlights

• Free cash flow after leasing was €146.1 million, down from €441.9 million in 9M 2024.

• Net bank liabilities increased by 20.4% to €3,249.6 million; equity ratio declined to 43.5%.

• CapEx reached €488 million, up from €442 million last year, reflecting ongoing network investments.

• Share price as of September 30, 2025, was €26.86, up 45.4% year-over-year.

• Operating EBITDA margin was 21.5% for 9M 2025.

Outlook and guidance

• Full-year 2025 revenue guidance confirmed at approximately €6.05 billion, with EBITDA expected at approximately €1.3 billion, including a €-20 million impact from the Vodafone National Roaming Agreement.

• Cash capex guidance updated to approximately €750 million, down from previous €800 million; 2025 anticipated as the CapEx peak.

• Management remains confident in achieving guidance, citing a stable subscription-based business model.

• No plans for IONOS spinoff due to tax issues; no intention to increase 1&1 stake beyond 86.5%.