United Internet with successful first nine months of 2022

  • Customer contracts: + 430,000 to 27.11 million contracts
  • Sales: + 5.2% to EUR 4.384 billion
  • EBITDA: + 3.3% to EUR 983.3 million
  • EBIT: + 3.4% to EUR 622.0 million
  • 2022 guidance confirmed

Montabaur, November 10, 2022. United Internet AG can look back on a successful first nine months of 2022. In the reporting period, the company continued to make investments in new customer contracts and the expansion of existing customer relationships, and thus in sustainable growth. The total number of fee-based customer contracts was raised by 430,000 to 27.11 million contracts. Of this amount, 220,000 contracts were added in the Consumer Access segment (+450,000 operating growth less -230,000 contracts due to the German Telecommunications Act effect) and 160,000 contracts in the Business Applications segment. A further 50,000 contracts were gained in the Consumer Applications segment. Due to seasonal effects, ad-financed free accounts were 290,000 down on December 31, 2021, but at the same time 740,000 accounts above the comparative prior-year reporting date of September 30, 2021.

In the first nine months of 2022, sales grew by 5.2% from EUR 4,167.9 million in the previous year to EUR 4,384.3 million. 

Prior-year earnings were impacted by a (non-period) positive effect of EUR 39.4 million. Without consideration of this earnings effect and additionally adjusted for positive non-cash valuation effects from derivatives of EUR 3.0 million in the previous year and EUR 12.2 million in the first nine months of 2022, the Group’s key earnings figures developed as follows: EBITDA rose by 3.3%, from EUR 952.1 million in the previous year to EUR 983.3 million, and EBIT by 3.4% from EUR 601.5 million to EUR 622.0 million.

These earnings figures include expenses incurred for the construction of 1&1’s mobile communications network amounting to EUR -26.1 million (prior year: EUR -24.5 million), as well as costs for the announced additional marketing activities of IONOS to raise brand awareness in its most important European markets amounting to EUR -12.6 million. There were also increased electricity costs of EUR -16.3 million compared to the previous year.

Earnings per share (EPS) fell from EUR 1.68 in the previous year to EUR 1.59 and EPS before PPA from EUR 1.97 to EUR 1.89 (in each case without consideration of the non-period positive effect on earnings in 2021 and the positive valuation effects from derivatives in 2021 and 2022). This decline in EPS was mainly due to a year-on-year decrease in the financial result, which was impacted in part by the subsequent measurement of financial derivatives (EPS effect: EUR 
-0.03; prior year: EUR +0.02), as well as – with regard to the result from associated companies – the prorated negative result of Kublai GmbH, which was only partially included in the comparative figures for the first nine months of 2021 as the takeover of Tele Columbus AG was only completed during the course of the previous year (EPS effect: EUR -0.12; prior year: EUR -0.05).

Outlook 2022

In a press release issued on September 30, 2022, United Internet updated its full-year guidance for 2022. The company continues to expect an increase in consolidated sales for the full year 2022 to approx. EUR 5.85 billion. Due in part to slightly lower expenses for the 1&1 network rollout, EBITDA 2022 is likely to rise to approx. EUR 1.270 billion (previously expected: EUR 1.259 billion). In addition to costs for the 1&1 network rollout of approx. EUR 60 million (previously expected: EUR 70 million), the EBITDA forecast continues to include approx. EUR 30 million for additional marketing activities of IONOS as well as increased electricity costs of approx. EUR 20 million. Capex of approx. EUR 700 million is expected (previously expected: EUR 800 million – EUR 1 billion).

Key figures Q3 2022