United Internet wants to invest more in the sluggish 5G expansion
The Internet group United Internet wants to push the sluggish 5G network construction of its subsidiary 1&1 in the coming months and is planning more money for it. With a targeted 320 million euros, the investment volume for the current year is higher than in 2022. Originally, however, CEO Ralph Dommermuth had targeted around 400 million euros for the past year before delivery bottlenecks and alleged agreements between the 1&1 construction partner Vantage Tower and whose mother Vodafone delayed the expansion. The targeted sum for the 1&1 network was then only 250 million euros. 1&1 should be the fourth network operator in Germany to meet the expansion obligation of 1000 activated 5G stations by the end of 2022 – according to the latest information, there were only five.
For the year as a whole, United Internet wants to increase sales to 6.2 billion euros, which would correspond to an increase of around 4.8 percent compared to 2022, as the company announced on Wednesday evening. In the past year, the group achieved an equally strong increase to around 5.9 billion euros. However, operating earnings before interest, taxes, depreciation and amortization are likely to remain at the previous year’s level of around 1.27 billion euros in 2023 due to increased investments.
The mobile communications subsidiary 1&1 generated two thirds of the turnover – it increased by 1.4 percent to almost 4 billion euros. The web hosting subsidiary Ionos looks at the current year with mixed feelings. Sales are likely to increase by around a tenth and the adjusted operating result (Ebitda) by at least ten percent. In 2022, the newcomer to the stock market increased its proceeds by 17.2 percent to almost 1.3 billion euros. In operational terms, however, less of this remained: Due to larger marketing expenses to increase brand awareness and increased energy costs, the adjusted operating result (Ebitda) fell slightly to 345.6 million euros.