United Internet (UTDI) Q4 2024 earnings summary

Executive summary

• Reported 1.9% year-over-year revenue growth to €6.33 billion, with customer contracts rising by 590,000 to 29.02 million, driven by business and consumer applications.

• EBITDA remained stable at €1.29 billion, despite higher network rollout costs and a temporary mobile network outage; EBIT declined 15.3% to €638.7 million due to increased depreciation.

• Net income attributable to shareholders was -€47.6 million, mainly due to a non-cash impairment on Kublai/Tele Columbus and one-off tax effects.

• Proposed dividend includes a regular €0.40 per share and a one-off €1.50 catch-up dividend to compensate for reduced dividends from 2018–2023.

• Maintained a stable business model based on electronic subscriptions, ensuring predictable revenues and cash flows.

Financial highlights

• Cash flow from operating activities increased to €1,128.9 million; net cash inflow from operating activities rose to €954.1 million.

• Capex for 2024 was €774.6 million, mainly for fiber optic and mobile network investments.

• Equity ratio stable at 46.5%; net bank liabilities increased to €2.70 billion.

• Free cash flow after leases improved to €47.4 million from -€85.0 million in the prior year.

• Group EBIT down 15.3%, operational EPS at €0.98, negative EPS of -€0.28 due to one-off tax and impairment effects.

Outlook and guidance

• 2025 revenue expected at approximately €6.4 billion, EBITDA targeted at €1.35 billion, representing 6% growth, including a €-20 million impact from national roaming provider change.

• Cash CapEx planned at €800 million, slightly above 2024, mainly for mobile and fiber network expansion.

• Free cash flow for 2025 expected to be similar to 2024, with a positive trend anticipated in subsequent years.

• Dividend policy remains at 20-40% of adjusted net income, with a proposed regular dividend of €0.40 per share and a one-off catch-up dividend of €1.50 per share for 2024.

• No plans for major changes in dividend policy or share buybacks in the near term; leverage to remain around 2–2.5x EBITDA.