United Internet and subsidiary 1&1 raise earnings forecast for 2022

United Internet company building

Montabaur, Berlin United Internet his mobile phone subsidiary 1&1 expect more profit in 2022 than before. However, the background is not hopes for more sales. Here the expectations remain unchanged.

Rather, the sluggish network construction at the subsidiary 1&1 leads to lower investment costs, as the company announced on Friday evening. When it comes to sales United Internet for 2022 we therefore continue to expect an increase to 5.85 billion euros.

Earnings before interest, taxes, depreciation and amortization (Ebitda) should now climb to 1.27 billion euros. So far United Internet assumed to be 1.26 billion euros. Instead of an investment of 0.8 to 1.0 billion euros, United Internet only expects 0.7 billion euros. This is primarily the result of unexpected delays in the provision of antenna locations as a result of delivery bottlenecks at an expansion partner of 1&1.

1&1 expects more profit

The subsidiary now also expects more profits in the current year due to lower investments. 1&1 still expects an increase in service revenue to around EUR 3.2 billion (2021: EUR 3.1 billion), but an increased EBITDA of around EUR 690 million (2021: EUR 671.9 million).

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The sales forecast remains unchanged. In terms of customer growth, 1&1 expects 100,000 fewer new contracts than previously expected due to the stronger than expected effects of new legal regulations. In 2022, these should still be 350,000.

United Internet includes Gmx.de and Web.de as well as the web hosting provider Ionos, which is striving to go public, in which the financial investor Warburg Pincus holds around a quarter.

More: Billionaire plans in Montabaur: United Internet puts GMX and Web.de up for sale

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