United Internet H1 Sales Up 4.5%; Confirms FY22 Guidance

European internet specialist United Internet AG (UDIRF.PK), on Thursday, reported a 4.5% growth in first-half sales that amounted to EUR 2,901.1 million from EUR 2,775.6 million in 2021.

EBITDA rose by 3.5%, to EUR 655.1 million from EUR 632.9 million in the previous year, and EBIT by 3.3% to EUR 414.9 million from EUR 401.6 million last year.

These earnings figures include expenses incurred for the construction of 1&1's mobile communications network of EUR -16.1 million, as well as costs for the announced additional marketing activities of IONOS to raise brand awareness in its most important European markets of EUR -13.2 million. There were also increased electricity costs of EUR -11.1 million.

Earnings per share decreased to EUR 1.03 from EUR 1.15 earned a year ago, and EPS before PPA fell to EUR 1.23 from EUR 1.35 in the prior year period.

The company stated that the decline in EPS was mainly due to a year-on-year decrease in the financial result, which was impacted in part by the subsequent measurement of financial derivatives, as well as - with regard to the result from associated companies - the prorated negative result of Kublai GmbH, which was only partially included in the comparative figures for the first half of 2021 as the takeover of Tele Columbus AG was still ongoing.

Outlook 2022

The company continues to expect an increase in consolidated sales for the year 2022 as a whole to about EUR 5.85 billion versus the previous year's EUR 5.646 billion.

EBITDA 2022 is likely to be on a par with 2021 figure EUR 1.259 billion. Further, Capex is expected to be between EUR 800 million and EUR 1 billion compared to the prior year's EUR 290 million.

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