United Internet with preliminary results for the first half of 2024 and updated forecast for 2024

EQS-Ad-hoc: United Internet AG / Key word(s): Change in Forecast/Preliminary Results United Internet with preliminary results for the first half of 2024 and updated forecast for 2024 02-Aug-2024 / 22:04 CET/CEST Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. Montabaur, August 2, 2024. United Internet AG continued to invest in new customer contracts and the expansion of existing customer relationships and thus in sustainable growth in the first half of 2024. Overall, the number of fee-based customer contracts increased by 330,000 to 28.78 million contracts. This included 90,000 new contracts 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.

According to preliminary figures, sales in the first half of 2024 rose by 2.8% from EUR 3,014.2 million in the same period of the previous year to EUR 3,099.9 million. The only moderate increase in sales was primarily due to lower hardware sales (especially smartphones) in the “Consumer Access” segment (EUR -37.4 million compared to H1 2023) and lower Aftermarket sales in the “Business Applications” segment (EUR -18.8 million compared to H1 2023). Hardware and Aftermarket sales are low-margin and only have a very minor impact on earnings.

EBITDA amounted to EUR 662.3 million in the first half of 2024 (previous year: EUR 668.7 million). This includes increased expenses for the expansion of the 1&1 mobile network amounting to EUR -111.0 million (previous year: EUR -40.8 million), thereof EUR 14.3 million in out-of-period expenses for recalculations for the network expansion for 2022 and 2023.

In addition to the costs of the network expansion and expenses relating to other periods, EBIT was also impacted by increased depreciation and amortization of EUR 257.9 million (previous year: EUR -204.7 million), particularly on investments in the expansion of the fiber-optic network at 1&1 Versatel and the 1&1 mobile network. Accordingly, it amounted to EUR 347.4 million (EBIT previous year: EUR 407.1 million).