United Internet reports record sales

19 Nov 2014

United Internet, a provider of broadband and telephony services in Germany under the brand 1&1, has announced that consolidated sales increased to a new record level of EUR2.171 billion (USD2.7 billion) in the first nine months of 2014, up 11.0% from EUR1.955 billion in the year-ago period. Excluding one-off income (amounting to EUR71.5 million) from the contribution of Global Founders Capital investments to Rocket Internet, earnings before interest, tax, depreciation and amortisation (EBITDA) totalled EUR379.8 million, up 35.4% year-on-year, while EBIT climbed 49.0% from EUR210.6 million in 9M 2013 to EUR313.7 million the following year. The company also expects one-off, non-cash income in the fourth quarter from the acquisition of Versatel, which was completed on 1 October 2014, giving it access to Germany’s second largest fibre-optic cable network.

The ‘Access’ segment saw sales increase 12.1% year-on-year to EUR1.482 billion for 9M 2014, with growth driven by a rise in the number of fee-based customer contracts from 5.36 million at end-September 2013 to 6.10 million twelve months later. Of that total, 3.41 million were DSL customers on ‘complete’ (ULL) packages (up from 3.09 million a year earlier), 2.37 million were mobile internet users (1.86 million) and the remaining 320,000 were T-DSL/R-DSL subscribers (down from 410,000). The access segment reported a 21.6% year-on-year rise in EBITDA to EUR213.9 million for the first nine months of 2014, while EBIT jumped 25.0% from EUR154.7 million to EUR193.3 million over the same period.

Germany, 1&1 Versatel, United Internet