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.
