Half Year 2026 United Internet AG Earnings Call Transcript
Key Points
- United Internet AG (UDIRY) confirmed its 2026 guidance with revenue expected to reach approximately EUR6.25 billion and EBITDA around EUR1.45 billion, indicating confidence in future performance.
- The IONOS segment showed strong growth, adding 500,000 new customer contracts in H1 2026 and increasing revenue by 6.9% (8.2% FX-adjusted), driven by AI initiatives and a broad product portfolio.
- Mail and Media segment demonstrated robust financial performance with revenue up 8.4% and EBITDA up 16.7%, driven by successful conversion of free accounts to pay accounts (190,000 additional pay accounts).
- The company is leveraging AI to reduce costs and improve efficiency, leading to a reduction in headcount from 11,000 to 10,400, with expectations of further decreases.
- United Internet AG (UDIRY) is expanding its fiber optic network, reaching 34% of households (up from 27% at end of last year), and plans to launch an eSIM service via its portals in Q4 2026, targeting younger customers and creating new growth opportunities.
- The 1&1 segment experienced a net loss of 140,000 customer contracts in H1 2026, primarily due to the discontinuation of low-cost tariffs and reduced data allowances.
- IONOS EBITDA margin decreased slightly to 33.2% from the previous year, attributed to significantly higher marketing expenses in H1 2026.
- Mail and Media saw a decline in total accounts, with 240,000 fewer free accounts, although this was partially offset by growth in pay accounts.
- Group net debt increased by EUR200 million to EUR3.5 billion, with leverage at 2.57, partly due to dividend payments and share buybacks.
- The company faces challenges in fully automating customer support with AI, as complex cases still require human intervention, indicating that full cost savings from AI will take time to materialize.
Ladies and gentlemen, dear guests, welcome to the Analyst and Investor Conference of United Internet. Iâm very happy to be able to welcome you personally here in Frankfurt again, and I would like to welcome the webcast participants as well. Iâm happy to take you through the agenda.
First, by Ralph Dommermuth, weâll hear the company development of the first half of the year, and heâll also give us an outlook. Carsten Theurer will explain us the financials in detail. After this, you will have the option of asking questions in a Q&A session.
Thatâs all I have to say, I can give the floor to Mr. Dommermuth. Give the floor. Thank you very much, Mr. Grossmann.
Welcome, ladies and gentlemen. As far as we havenât seen earlier, I will give you the company development of the first half of 2026 in United Internet and give you an outlook to the second half of the year as well.
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