United Internet sees 9M revenue grow 15% on rising DSL customers

11 Nov 2010

German ISP United Internet has posted revenue of EUR1.409 billion (USD1.93 billion) in the first nine months of 2010, representing growth of 15% compared to the EUR1.224 billion generated in the same period a year earlier. Of that total, EUR913 million was accounted for by the firm’s internet access segment, an increase of 21% year-on-year. The company noted that despite an increase in expenditure for its current DSL quality drive, earnings before interest, depreciation and amortisation (EBITDA) for the nine-month period totalled EUR270.8 million, up slightly from EUR269.1 million in 9M 2009. However, EBIT dropped 8.3% year-on-year to EUR210.6 million, which United Internet attributed to scheduled depreciation of EUR16.2 million following the acquisition of freenet’s DSL customer base in late 2009. Meanwhile, third-quarter sales were up 16.9% on the previous year to EUR478.2 million, although EBITDA fell 6.9% year-on-year in the three months ended 30 September 2010 to EUR88.8 million, due to a rise in expenditure, to EUR39.1 million. The figure is more than twice as much as the amount invested in the first and second quarter of 2010 together (EUR8.7 million and EUR10.5 million, respectively).

In operational terms, United Internet reported a total of 3.55 million internet ‘accesses’ at 30 September 2010, up from 3.52 million a year earlier. Of the total, 2.21 million were complete DSL packages (an increase of 31% year-on-year), with a further 170,000 accounted for by mobile internet products (almost double the 90,000 recorded at 30 September 2009). United Internet is currently phasing out its narrowband and resale DSL products; in the first nine months of 2010 a total of 420,000 of such customers were lost or converted to complete DSL packages to bring the total to 1.17 million.

Germany, United Internet (1&1)