United Internet swings to net loss

27 Mar 2009

German ISP United Internet, the country’s third largest broadband provider by retail subscribers, has reported that it swung to a full-year net loss in 2008 because of write-downs on stakes in competitors. Due to non-cash write-downs of EUR275.4 million (USD373.8 million) on investments in Freenet (via MSP Holding), Versatel, Drillisch and Goldbach Media, United Internet posted a net loss of EUR121.5 million in 2008 compared with a net profit of EUR155.4 million the previous year. Revenues grew by 10.9% to EUR1.65 billion, EBIT climbed 8.3% to EUR256.6 million and EBITDA rose by 3.2% to EUR318.8 million. The ISP, which uses the brand name 1&1, saw its total retail DSL customers increase by 230,000 during 2008 to 2.82 million at end-December. In the same period its number of unbundled DSL customers grew from 110,000 to 780,000 and the number of resold DSL connections dropped from 2.48 million to 2.04 million. United Internet said it expects slight growth in 2009 sales and stable operating profit.

Germany, United Internet (1&1)