telecommunications
United Internet: High investments in network expansion
In terms of consolidated sales, United Internet is now expecting slightly more in 2022 than has been known since December. Photo: Thomas Frey/dpa
© dpa-infocom GmbH
The internet group United Internet wants to spend heavily on network expansion. Already this year they want to spend a total of up to one billion euros – that would be more than three times as much as in 2021.
Internet group United Internet wants to spend significantly more money on network expansion in the coming years.
“Investments will not have peaked in 2022. We will continue to invest heavily in our network in the coming years,” said majority shareholder and CEO Ralph Dommermuth of the financial news agency dpa-AFX. In the current year, the manager wants to spend a total of up to one billion euros – that would be more than three times as much as in 2021. Around 400 million euros are to flow into the network of the subsidiary 1&1. After an initial phase with a limited range of functions later this year, 1&1 customers should then have their own network throughout Germany from summer 2023.
In terms of consolidated sales, United Internet is now expecting slightly more in 2022 than has been known since December. The proceeds should rise to around 5.85 billion euros instead of the previously expected 5.8 billion, as the company listed in the MDax announced on Thursday in Montabaur. Earnings before interest, taxes, depreciation and amortization (Ebitda) adjusted for special effects should remain at the previous year’s level.
Meanwhile, group revenue for the past year grew by five percent to around EUR 5.65 billion, while 1&1 sales increased by 3.2 percent to EUR 3.9 billion. Adjusted for special effects, United Internet’s consolidated earnings before interest, taxes, depreciation and amortization (Ebitda) increased by three percent to EUR 1.26 billion. At the subsidiary, on a comparable basis, it was around five percent more than a year earlier, at EUR 672 million.
The board of directors wants to pay out a dividend of 50 cents per share to United Internet shareholders, and 1&1 shareholders are to receive 5 cents. The proposals still have to be approved at the AGM on May 18th.