United Internet publishes final figures for first half-year 2024
- Customer contracts: + 330,000 to 28.78 million contracts
- Sales: + 2.8% to EUR 3.100 billion
- EBITDA: - 1.0% to EUR 662.3 million due to EUR -70.2 million higher start-up costs for 1&1 mobile network (compared to prior-year period)
- Guidance 2024: sales approx. EUR 6.4 billion, EBITDA approx. EUR 1.38 billion, cash capex 15-25% up on previous year
Montabaur, August 8, 2024. United Internet AG has published its final performance figures for the first half of 2024. The Company had already announced preliminary half-year figures and downgraded its full-year guidance on August 2, 2024.
In the first half of 2024, the total number of fee-based customer contracts increased by 330,000 to 28.78 million contracts. Of this amount, 90,000 contracts were added in the Consumer Access segment and 130,000 contracts in the Business Applications segment. A further 110,000 contracts were gained in the Consumer Applications segment.
Sales grew by 2.8% in the first half of 2024, from EUR 3,014.2 million in the previous year to EUR 3,099.9 million. This merely moderate sales growth was mainly due to a decline in hardware revenues (especially smartphones) in the Consumer Access segment (EUR -37.5 million compared to H1 2023) as well as lower after-market sales in the Business Applications segment (EUR -18.8 million compared to H1 2023). These low-margin hardware and aftermarket revenues have only a very minor impact on earnings.
EBITDA in the first half of 2024 amounted to EUR 662.3 million (prior year: EUR 668.7 million). This figure includes increased expenses for the rollout of 1&1’s mobile network of EUR -111.0 million (prior-year period: EUR -40.8 million), of which EUR -14.3 million related to out-of-period expenses from subsequent billing for the network rollout in 2022 and 2023.
In addition to network rollout costs and out-of-period expenses, EBIT was additionally burdened by increased depreciation of EUR -257.9 million (H1 2023: EUR -204.7 million) resulting in particular from investments in the expansion of 1&1 Versatel’s fiber-optic network and 1&1’s mobile network. As a result, it amounted to EUR 347.4 million (H1 2023: EUR 407.1 million).
Adjusted for a non-cash writedown on the investment in Kublai / Tele Columbus (EPS effect: EUR -0.99), EPS declined from EUR 0.83 to EUR 0.61. In addition to the development of EBIT (EPS effect: EUR -0.15), this was due to a lower result from associated companies (EPS effect: EUR -0.04), as well as increased interest expenses (EPS effect: EUR -0.03).
Cash capex in the first half of 2024 amounted to EUR 284.4 million (prior year: EUR 301.3 million).
Outlook 2024
On August 2, 2024, United Internet adjusted its full-year guidance and now expects sales of approx. EUR 6.4 billion in 2024 (previous guidance: approx. EUR 6.5 billion; 2023: EUR 6.213 billion). EBITDA is expected to amount to approx. EUR 1.38 billion, including out-of-period expenses of EUR -14.3 million, or approx. EUR 1.39 billion without out-of-period expenses (previous guidance: approx. EUR 1.42 billion; 2023: EUR 1.30 billion).
Cash capex is likely to be 15-25% above the prior-year figure (previous guidance: 10-20% above the prior-year figure; 2023: EUR 756 million). This increase is due to the establishment of the Company’s own stock of network components, which were previously stored by expansion partners.