Germany's United Internet nine-month revenue rises, maintains 2026 outlook

Overview

• Germany internet specialist's nine-month revenue rose 3% yr/yr to EUR 4.64 bln

• EBITDA for the period increased 10%, EBIT up 25.4% yr/yr

• Company added 770,000 customer contracts, led by growth in IONOS and Mail & Media segments

Outlook

• United Internet confirms 2026 sales guidance at approx. EUR 6.25 bln

• Company expects 2026 operating EBITDA of approx. EUR 1.45 bln

• Cash capex for 2026 expected at EUR 600-650 mln

Result Drivers

• SEGMENT CONTRASTS - Growth in IONOS and Mail & Media contracts offset by decline in 1&1 contracts due to discount tariff realignment

• ONE-OFF EXPENSES - Earnings impacted by EUR 61.3 mln in transformation and restructuring costs at 1&1 Versatel and IONOS

• LOWER PPA AMORTIZATION - EBIT increase supported by lower PPA amortization and lower tax expenses

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the integrated telecommunications services peer group is "buy"

• Wall Street's median 12-month price target for United Internet AG is €33.00, about 34.8% above its November 11 closing price of €24.48

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• Nov 11 - Germany's Adesso 9-month sales rise 13%, EBITDA up 26%

• Nov 11 - Germany's Gesco nine-month EPS jumps, reaffirms FY forecast

• Nov 11 - German economic council upgrades growth forecasts, flags budget risks

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)