Development and Targets
United Internet is a leading European internet specialist with two fast-growing segments and a scalable business comprising 59 million customer accounts in 12 countries.
Equity Story of United Internet AG
- Equity Story of United Internet AG
- Founded in 1988, United Internet AG is a leading European internet specialist with more than 23 million fee-based customer contracts and over 36 million ad-financed free accounts around the world.
- At the heart of our company are our high-performance Internet Factories, where 9,000 dedicated employees – of which 3,000 in product management – ensure operational excellence for approx. 60 million customer accounts in 12 nations.
- Our operating business is divided into the Access and Applications segments.
- The Access segment comprises our fee-based landline and mobile internet products, including the respective applications. In addition to products for home users, freelancers and small firms, we also offer data and network solutions for SMEs, as well as infrastructure services for large corporations. In the Access segment, we operate exclusively in Germany, where we are one of the leading providers.
- The Applications segment comprises our business with applications for home users, freelancers and small firms. These include e-mail applications, domains, home pages, webhosting, cloud servers, e-shops, Personal Information Management applications, group work, online storage and office software. In the Applications segment, we are a leading global player with activities in numerous European countries as well as North America.
- In the Access segment, we combine our own infrastructure (one of Germany’s largest fiber-optic network with a length of over 46,000 km) with standardized network services from various pre-service providers. These network services - wether broadband or mobile - are enhanced with end-user devices from major providers, as well as self-developed applications and services from our “Internet Factory”, to create independent telecommunication products.
- In the Applications segment, we cover the entire value chain. Our applications are developed at our “Internet Factory“ or in cooperation with partner companies and run on some 90,000 servers at our 10 data centers.
- United Internet's core competency is to recognize customer wishes and trends at an early stage and thus to identify and exploit new market opportunities.
- Our own product development, a high degree of flexibility, and considerable marketing and sales strength help us to place innovations on the market faster than others, as well as to market our products effectively and quickly achieve profitability.
- Thanks to modular components, our products can be combined, extended, scaled and offered world-wide exactly as required.
- Subscription-based customer contracts secure sustainable and plannable business with stable cash flows to finance future growth – organic or via investments and acquisitions.
- The dynamic market development, especially in the field of mobile internet and cloud applications, as well as the further internationalization of our Applications business, offer considerable growth opportunities for United Internet – also in the medium and long term.
- With over 25 years of experience, our expertise in software development and data center operation, marketing, sales and active customer support, our strong and well-known brands (such as 1&1 Drillisch, 1&1 IONOS, GMX, WEB.DE and 1&1 Versatel), and our existing customer relationships with millions of home users, freelancers and companies, we are excellently placed to actively shape further market developments.
- A leading European internet specialist
- Experienced management
- Strong brands with high awareness levels
- Scalable business
- Stable sales and income from subscription-based customer contracts with strong cash flows
- High sales strength and growth opportunities, especially in the fields of Mobile Internet, E-Business and Cloud Applications
- Strong positioning in Access business by combining own infrastructure (Germany’s second-largest fiber-optic network with a length of 46,000 km) with standardized third-party network services
- Wide coverage of value chain in Applications business and high internationalization potential thanks to the “exportability” of our applications and 10 data centers in Europe and the USA with around 90,000 servers
- Conservative decision and investment approach with long-term perspective
- Shareholder return via dividends and share buybacks