United Internet Q3 EBITDA grows 22%, no longer interested in HanseNet

5 Nov 2009

German ISP United Internet (1&1) has posted its results for the three months ended 30 September 2009, reporting revenue of EUR409.1 million, up 4.4% compared to EUR391.7 million a year earlier. Earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter increased 21.5% year-on-year to EUR95.4 million, while including non-recurring income of EUR50.2 million from the sale of shares in freenet, EBITDA rose to EUR145.6 million. Meanwhile, in the first nine months of 2009 revenue grew 5.1% over the same period a year earlier to EUR1.22 billion, while 9M EBITDA improved 8.1% year-on-year to EUR269.1 million. Including non-recurring income from the sale of directly held freenet shares, EBITDA rose to EUR319.3 million. United Internet has raised its earnings forecasts for 2009; an increase of around 8% over the comparable prior-year figures is now expected for EBITDA and EBIT, compared to a rise of 5% previously anticipated.

At 30 September 2009 United Internet’s total customer base stood at 9.17 million, including approximately 700,000 broadband contracts from the acquisition of freenet’s DSL unit; the technical migration of freenet customers is expected to be fully completed on schedule next month. The telco’s internet subscriber base fell however by 30,000 during the third quarter of 2009 to reach 3.6 million, including 3.44 million DSL customers (of which 1.7 million were all-inclusive packages and 1.74 million were re-sale DSL/T-DSL).

In a separate report, United Internet revealed it is no longer bidding for local broadband operator HanseNet, according to Reuters, citing an interview with United’s CEO Ralph Dommermuth in the Rheinischen Post. As previously reported by CommsUpdate, Spain’s Telefonica is said to be in the final stages of closing a deal to buy the German broadband unit of Telecom Italia.

Germany, HanseNet Telekommunikation (Alice), United Internet