United Internet 2024 Results & 2025 Outlook
- Based on the 2024 financial results, the board and supervisory board will propose a regular dividend of EUR 0.40 per share, payable on May 15, 2025. Additionally, a...
- The company had anticipated that its subsidiary, 1&1, might need to acquire additional radio spectrum by 2025.
- This subsequent dividend increases the dividend payments for the 2018-2023 period to approximately 35% of the adjusted group result attributable to minority shareholders, fulfilling the dividend policy in...
United internet Announces 2024 Results,Dividend Proposal,adn 2025 Outlook
Table of Contents
- United internet Announces 2024 Results,Dividend Proposal,adn 2025 Outlook
- United Internet: Your Questions Answered About 2024 Results and Future Outlook
- What were the Key Financial Highlights for United Internet in 2024?
- What is the Dividend Plan for United Internet?
- How Does the Company Anticipate 1&1’s Financial Strategy in the Future?
- What is the Company’s Outlook for 2025?
- What are the Key Differences in Roaming Agreements for 1&1?
- Summary of Key Financial Data
Montabaur,March 25,2025
Key Highlights of 2024
- Customer contracts increased by 590,000 to 29.02 million.
- Sales rose by 1.9% to EUR 6.329 billion, despite a EUR 92.3 million decrease in hardware sales.
- EBITDA saw a slight increase of 0.1% to EUR 1.294 billion, despite a EUR 132.9 million impact.
- A dividend of EUR 0.40 per share is proposed, along with a one-time special dividend of EUR 1.50 per share.
Dividend Details
Based on the 2024 financial results, the board and supervisory board will propose a regular dividend of EUR 0.40 per share, payable on May 15, 2025. Additionally, a one-time dividend of EUR 1.50 will be distributed to compensate for reduced dividend payments from the 2018 to 2023 financial years.
The company had anticipated that its subsidiary, 1&1, might need to acquire additional radio spectrum by 2025. It was expected that United internet would provide financial backing if needed. However, a recent decision by the Federal Network Agency has delayed frequency acquisition by several years. 1&1 is now projected to be able to independently finance the acquisition of further frequencies, in addition to its network expansion investments.
This subsequent dividend increases the dividend payments for the 2018-2023 period to approximately 35% of the adjusted group result attributable to minority shareholders, fulfilling the dividend policy in affect since 2013.
2025 Outlook
The company anticipates sales to increase to approximately EUR 6.4 billion in 2025 (compared to EUR 6.303 billion in 2024), excluding the energy sales sector. EBITDA is projected to rise from EUR 1.295 billion in 2024 to approximately EUR 1.35 billion. This figure includes an approximate EUR 20 million impact due to the change of the national roaming provider at 1&1. Under the commercially equivalent national roaming agreement with Vodafone, the capacities used by 1&1 are fully recorded in EBITDA, whereas they were partially activated and written off with Telefónica during the previous national roaming agreement. Cash capital expenditure is expected to be approximately EUR 800 million (compared to EUR 774.6 million in 2024).
United Internet: Your Questions Answered About 2024 Results and Future Outlook
What were the Key Financial Highlights for United Internet in 2024?
United Internet announced its financial results for 2024, revealing significant developments. Here’s a breakdown of the key highlights:
Customer Growth: The company saw an increase of 590,000 customer contracts, bringing the total to 29.02 million.
Sales performance: Sales rose by 1.9, reaching EUR 6.329 billion, despite a decrease in hardware sales of EUR 92.3 million.
EBITDA Stability: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) experienced a slight increase of 0.1%, reaching EUR 1.294 billion, despite a EUR 132.9 million impact.
Dividend Proposal: A regular dividend of EUR 0.40 per share has been proposed, along with a special one-time dividend of EUR 1.50 per share.
What is the Dividend Plan for United Internet?
United Internet’s board and supervisory board have proposed a combined dividend plan based on the 2024 financial results.This includes:
Regular Dividend: A regular dividend of EUR 0.40 per share, scheduled to be paid on May 15, 2025.
Special Dividend: A one-time dividend of EUR 1.50 per share. This special dividend is intended to compensate for reduced dividend payments from the financial years 2018-2023.
These dividends reflect the company’s commitment to rewarding shareholders while maintaining a strong financial position.
How Does the Company Anticipate 1&1’s Financial Strategy in the Future?
Initially, there was a possibility that United Internet would need to provide financial backing to 1&1 to acquire additional radio spectrum. However, due to a decision by the Federal Network Agency, the frequency acquisition has been delayed for several years. Consequently, 1&1 is now projected to independently fund the acquisition of further frequencies, along with its network expansion investments.
What is the Company’s Outlook for 2025?
United Internet has provided guidance for 2025,indicating positive expectations:
Sales Growth: The company anticipates that sales will increase to approximately EUR 6.4 billion (compared to EUR 6.303 billion in 2024), excluding the energy sales sector.
EBITDA Projection: EBITDA is projected to rise from EUR 1.295 billion in 2024 to approximately EUR 1.35 billion. This includes an approximate EUR 20 million impact due to the change of the national roaming provider at 1&1.
* Capital Expenditure: Cash capital expenditure is expected to be approximately EUR 800 million (compared to EUR 774.6 million in 2024).
What are the Key Differences in Roaming Agreements for 1&1?
The switch in national roaming providers for 1&1 has implications for EBITDA.Under the commercially equivalent national roaming agreement with Vodafone, the capacities used by 1&1 are fully recorded in EBITDA. In contrast, with Telefónica, the capacities were partially activated and written off during the previous national roaming agreement.
Summary of Key Financial Data
| Metric | 2024 Results | 2025 Outlook (Approx.) |
| :—————————- | :—————— | :——————— |
| Sales (EUR Billion) | 6.329 | 6.4 |
| EBITDA (EUR Billion) | 1.294 | 1.35 |
| Customer Contracts (Millions) | 29.02 | N/A |
| Cash Capital Expenditure (EUR million) | 774.6 | 800 |
| Dividend Per Share (EUR) | 0.40 (regular) + 1.50 (special) | N/A |