United Internet grows: Ionos dynamic, 1&1 subdued

While 1&1 is making slow progress in expanding its own mobile network and customer growth is stagnating, sister company Ionos can surprise the stock market with strong figures. The parent company, United Internet, is also starting the new fiscal year well.

Network expansion at 1&1

The network build-out by 1&1 and the stagnating customer numbers are somewhat clouding the overall picture at 1&1. Nevertheless, 1&1 can also slightly increase its revenue to 1.1 billion euros. Operating profit (EBIT) grew by 27 percent year-on-year to almost 58 million euros thanks to the elimination of depreciation; earnings before depreciation (Ebitda) remain at the previous year's level, as do the customer numbers.

With its antennas, 1&1 now reaches 29 percent of households in Germany (as of the end of March), which is two percentage points more than three months prior, the company announced on Tuesday in Montabaur. By 2030, 1&1 must reach at least 50 percent of households, as required by the expansion obligations associated with frequency usage.

So far, the antennas are mainly located in densely populated cities. Where 1&1 does not have its antennas, 1&1 customers use the Vodafone network. At the turn of the year, 1&1 recorded around 2000 active antennas in Germany; for this year, the company expects an increase of an average of 300 newly activated sites per quarter.

Ionos and United Internet

Sister company Ionos reports revenue growth of 5.7 percent to around 348 million euros for the first quarter. Ionos was able to increase earnings before interest, taxes, and depreciation (Ebitda), adjusted for special items, by almost 5 percent to 118 million euros. With both figures, the company exceeded expectations. The number of customers increased by around 180,000 to 6.81 million.

The parent company, United Internet, recorded revenue growth of 2.5 percent to 1.55 billion euros for the first quarter, with an increase in Ebitda of 2.4 percent to 332 million euros. Overall, United Internet increased the number of customer contracts managed within the group by 380,000 compared to the previous year to now 30.1 million. The company confirms its forecast for the full year 2026 and continues to expect revenue to increase to around 6.25 billion euros.

(vbr)