Tech

United Internet: growth in profit and customers

The telecommunications provider United Internet has undertaken a stable business development for the current year and wants to pay a significantly higher dividend again. The distribution for the past year should be 0.50 euros per share, as the MDax group announced on Wednesday in Montabaur. A year earlier, there had only been a dividend of 5 cents because United Internet and its telecommunications subsidiary 1 & 1 Drillisch bought expensive mobile radio frequencies for the new 5G data radio in 2019. CEO Ralph Dommermuth owns around 42.5 percent of United Internet shares.

United Internet sales and profits are expected to be around 2019 levels this year, it says in the ad hoc announcement. Since then, sales increased by 1.8 percent to 5.2 billion euros. United Internet is currently creating a slow hardware business for smartphones and tablets from its subsidiary 1 & 1 Drillisch, and the company is also reducing online advertising space for private customer offers such as GMX and Web.de.

Earnings before interest, taxes, depreciation and amortization rose 5.4 percent to EUR 1.27 billion. However, this was due to the changed accounting for leases, without which the operating result would have decreased by almost 2 percent.

The bottom line was a profit attributable to shareholders of 396.4 million euros. It rose to 2.13 euros per share after 94 cents a year earlier. In particular, the weak share price development in the Tele Columbus investment had caused United Internet to suffer high impairments in 2018.

The telecommunications subsidiary 1 & 1 Drillisch, with which United Internet boss Ralph Dommermuth wants to attack the established network providers Deutsche Telekom, Vodafone and Telefonica Deutschland, increased the number of customer contracts by 890,000 over the year. At 1 & 1 Drillisch alone, sales rose by 1.1 percent to EUR 3.67 billion, and operating profit fell by more than 5 percent to EUR 683.5 million.


(olb)

. (tagsToTranslate) 1 & 1 Drillisch (t) GMX (t) business figures (t) United Internet (t) Web.de