Q2 2025 United Internet Earnings

Investments
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United Internet topped revenue estimates in Q2, reported EBITDA roughly in line with expectations, and maintained its 2025 outlook

  • United Internet’s Q2 2025 revenue rose 4.2% y/y to €1,606 million (calculated based on H1 unadjusted results), above analysts estimate of €1,556 million, while EBITDA rose 4.2% y/y to €334 million, slightly below analysts estimate of €340 million.
  • United Internet reiterated its 2025 outlook which includes service revenue of approximately €6.45 billion (Analysts estimate: €6,518 million ), EBITDA of approximately €1.35 billion (Analysts estimate: €1,346 billion) and cash CapEx of around €800 million (2024: €774.6 million).
  • 1&1’s Q2 2025 revenue was flat y/y at €988 million (in line with estimates), EBITDA fell 11.3% y/y to €128.0 million (analysts estimate: €135.5 million), EBIT declined 43% y/y to €44.9 million (analysts estimate: €54.9 million), EPS was €0.15 (analysts estimate: €0.23) while access contracts were flat y/y at 16.33 million (analysts estimate:16.32 million).
  • 1&1 reiterated its 2025 guidance given in June which includes EBITDA of approximately €545 million (previous guidance: 571 million), EBITDA in access segment of around €810 million (2024: €856.1 million), 1&1 network EBITDA of approximately -€265 million (2024: -€265.3 million) and cash capex of around €450 million (2024: €290.6 million).
  • United Internet and 1&1 shares are flat pre-market.
  • 1&1 said 1,200 antenna sites are now active, up from 1,000 at the end of Q1 2025, 4,500 are under development and that Vantage Towers continue to underdeliver (page 5).
  • United Internet said its stake in 1&1 is now 85.10%, after acquiring additional 4.29% through the voluntary public tender offer (page 14).

H1 2025 United Internet Press Release
H1 2025 United Internet Report
H1 2025 1&1 Press Release

Assessment
Even when adjusted for the discontinued energy division, revenue is up 4.3% y/y to €1,600 million while EBITDA is up 4% y/y to €333 million. United Internet shares are now down 2.6%, probably due to the slight miss in EBITDA or the slight miss in revenue outlook.

Overall, I think the results were solid, aided by strength at IONOS.

I don’t like that 1&1’s network progress is still slow. At 1,200 active antenna sites, hitting the 6,000-6,500 target is now nearly impossible.

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