German operator United Internet expects revenues to increase to around EUR 6.2 billion(US$6.74billion) this year, compared with EUR 5.92 billion reported for 2022, and stable EBITDA versus last year’s level, including around EUR 120 million to set up the 1&1 mobile network.
Capex, excluding M&A transactions, is expected to increase to around EUR 800 million, compared with EUR 681 million last year, in particular due to the network construction and the expansion of the fibre-optic network to connect 5G antennas and supply further areas.
For 2022, the company posted revenues up 4.8 per cent to EUR 5.92 billion, and EBITDA rose 0.7 per cent to EUR 1.27 billion. Adjusted earnings per share fell from EUR 2.11 in the previous year to EUR 2.00, affected by higher financial costs for derivatives. United Internet said profits were also impact by the costs for the Ionos IPO and the rise in energy prices. Nevertheless, it kept the dividend unchanged at EUR 0.50 per share, equal to EUR 86.4 million in total and around 23 per cent of adjusted net profit.
Q4 results
The company said revenues excusing hardware increased by 3.6 per cent year-on-year in Q4 2022 to EUR 1.53 billion. EBITDA progressed by 3.7 per cent during the period to EUR 1.31 billion. United Internet added 730,000 customer contracts over the 12 months, bringing the total number to 27.46 million at the end of 2022.
In the segment consumer access, revenues increased slightly by 0.7 per cent to EUR 1 billion, while EBITDA dropped 10.1 per cent to EUR 144.5 million in the fourth quarter. In the segment business access, revenues increased by 9.4 per cent year-on-year to EUR 144 million, and EBITDA by 1.1 per cent to EUR 42.1 million.
In the segment business applications, EBITDA dropped by 18.5 per cent to EUR 59.6 million while revenues increased by 14.1 per cent to EUR 328.4 million. In the segment consumer application revenues and EBITDA decreased by 3.9 per cent and 41.1 per cent in Q4 to EUR 75.9 million and EUR 23 million respectively. United Internet added 730,000 contracts, bringing the total number to 27.46 million.
