United Internet Revenue Rises But Misses FY2025 Forecasts

Key Financial Highlights

United Internet AG reported a 1.9% increase in fiscal 2025 revenue to €6.10 billion, falling short of the €6.24 billion projected by analysts. The company also announced its financial outlook for 2026, signaling continued investment and growth expectations.

Performance Overview

For fiscal year 2025, the German internet specialist's EBITDA reached €1.28 billion. The firm successfully added 700,000 new fee-based customer contracts, driven by its Consumer and Business Applications segments. However, increased depreciation costs, reflecting significant investments in the expansion of its 1&1 mobile and fiber-optic networks, impacted its results. Adjusted earnings per share saw an increase, largely attributed to lower tax expenses.

Economic and Market Outlook

Despite missing revenue expectations, United Internet provided a positive forecast for 2026. The company projects sales to grow to €6.25 billion and expects EBITDA to climb to approximately €1.45 billion. This forward guidance suggests confidence in its long-term strategy, particularly its heavy investment in network infrastructure. The projected cash capital expenditure for 2026 is set between €600 million and €650 million, reinforcing its commitment to network expansion.

Summary

United Internet's 2025 results present a mixed picture of revenue growth that missed market expectations but was supported by strong customer acquisition. The company's focus remains on strategic infrastructure investment, with a confident growth outlook for 2026 that investors will be watching closely.

FAQ

Q: What was United Internet's revenue for fiscal 2025?
A: United Internet reported revenue of €6.10 billion for fiscal 2025, a 1.9% increase from the previous year.

Q: Did United Internet meet its revenue forecast for 2025?
A: No, the reported revenue of €6.10 billion was below the analyst forecast of €6.24 billion.

Q: What is United Internet's financial forecast for 2026?
A: The company forecasts sales to reach €6.25 billion with an expected EBITDA of approximately €1.45 billion for 2026.

Source: Investing.com