United Internet Reports Successful Fiscal Year 2023 with Strong Growth

United Internet AG has announced its financial results for the fiscal year 2023, marking a successful period of growth and investment. The company reported a 5.0% increase in sales, reaching EUR 6.213 billion, and a 2.2% rise in EBITDA to EUR 1.300 billion. This growth occurred despite increased start-up costs for the construction of the 1&1 mobile network. Additionally, United Internet saw a significant rise in customer contracts, adding 1.03 million to achieve a total of 28.49 million contracts.

The company faced negative special items, including non-cash valuation effects from derivatives and IPO costs of IONOS Group SE. Earnings were adjusted to exclude these items, with an EBITDA growth led by substantial investments in customer relationships and the expansion of its mobile and fiber-optic networks. However, these developments also resulted in a notable increase in depreciation and operating expenses, influencing the company's operating EPS and cash capex figures.

Despite these challenges, United Internet remains optimistic, proposing a dividend of EUR 0.50 per share for 2023. Looking ahead to 2024, the company confirms its previous guidance, expecting sales to reach approximately EUR 6.5 billion and EBITDA to grow to around EUR 1.42 billion. This outlook is underpinned by the company's continued investment in infrastructure and strategic initiatives aimed at enhancing its product and service offerings.