United Internet reported mixed first-half results, with revenue climbing 4.3% to €3.23 billion but profits pressured by soaring 5G network investments. The parent company’s shares dropped 4.45% to €24.06 as startup costs for its 1&1 mobile network surged to €130.6 million—€20 million higher than last year—dragging adjusted EBITDA growth to just 2% (€675.6 million). Fiber expansion costs at 1&1 Versatel further squeezed earnings, with per-share profit falling to €0.59.
Cloud Unit Shines as Investors Await 5G Payoff
In contrast, subsidiary IONOS outperformed, raising its 2025 EBITDA target by 17% (€530 million) after a 23% first-half jump (€269 million). The cloud division’s revenue grew 19% (€895 million), offsetting telecom sector struggles. Despite confirming full-year guidance (€6.45 billion revenue, €1.35 billion EBITDA), investor skepticism persists over 1&1’s €800 million capex burden, with IONOS shares also dipping 4.88%. The group’s pivot to infrastructure remains a high-stakes gamble.
Ad
United Internet Stock: Buy or Sell?! New United Internet Analysis from February 7 delivers the answer:
The latest United Internet figures speak for themselves: Urgent action needed for United Internet investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from February 7.
United Internet: Buy or sell? Read more here...
