United Internet’s results prompt sales target cut

14 Aug 2008

United Internet, Germany’s second largest broadband internet service provider (ISP) by retail subscribers, has reported that its core earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 12.6% year-on-year to EUR88.6 million (USD132 million) in the three months to the end of June 2008, helped by strong customer growth, especially in its webhosting business. Second quarter net income of EUR45.2 million was up by 13.9% on the same period of last year, whilst revenues rose by 14.2% to EUR412.4 million, slightly below analysts’ average forecasts, which the firm attributed to a fall in online advertising sales. The under-par sales result prompted the ISP to cut its full-year turnover growth target, adjusted for currency effects, to 18%, from a previous forecast of 20%, whilst its core profit growth goal of 20% remains unchanged.

Germany, United Internet (1&1)