United Internet AG Reports Strong Start to Fiscal Year 2025

Montabaur, Germany — United Internet AG, a leading internet service provider based in Germany, has reported a positive start to its fiscal year 2025. The company, which operates in the diversified telecommunication services sector, has seen a notable increase in customer contracts and has adjusted its financial outlook accordingly.

Financial Highlights and Adjustments

In the first quarter of 2025, United Internet experienced a slight increase in its adjusted EBITDA, rising by 0.1% to €342.6 million from the previous year’s €342.1 million. This growth occurred despite increased expenses related to the expansion of its 1&1 mobile network. The company has revised its sales guidance for the year, reflecting a more optimistic outlook due to strong customer growth.

Netzausbau Costs and Impact

The expansion of the 1&1 mobile network has led to higher netzausbau (network expansion) costs, which have impacted the company’s financial results. Initially, these costs were reported at approximately €42 million for the period, a significant increase from the previously stated €4 million. Despite these expenses, United Internet has managed to maintain a positive trajectory in its financial performance.

Customer Growth and Market Position

United Internet has added approximately 150,000 new customer contracts, bringing the total to 29.17 million. This growth in customer base underscores the company’s strong market position and its ability to attract both consumer and business clients globally.

Stock Performance and Market Reaction

On the stock market front, United Internet’s shares have experienced fluctuations. As of May 8, 2025, the close price was €21.04, with a 52-week high of €24.64 and a low of €14.58. The company’s market capitalization stands at €3.82 billion. However, investors who purchased shares a year ago have seen a decline in value, reflecting broader market trends and specific challenges faced by the company.

Conclusion

United Internet AG’s strong start to the fiscal year 2025, marked by increased customer contracts and an optimistic sales outlook, positions the company well for continued growth. Despite facing higher network expansion costs, the company’s strategic focus on customer acquisition and service expansion is expected to drive future success. Investors and stakeholders will be closely monitoring United Internet’s performance as it navigates the evolving telecommunications landscape.