United Internet is aiming for stable business

United Internet

A company sign on a United Internet building on the premises of subsidiary and internet company 1 & 1.

(Photo: dpa)

(Update: Additional company figures added) United Internet is targeting stable business for Montabaur 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 earnings are expected to be around the 2019 level this year. Since then, the revenue 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. Above all the weak share price development in the participation Tele Columbus United Internet had rocketed high impairments in 2018.

Telecommunications subsidiary 1 & 1 Drillisch, with United Internet boss Ralph Dommermuth the established network providers Deutsche Telekom, Vodafone and Telefonica Germany wants to attack, the number of customer contracts increased by 790,000 over the year. At 1 & 1 Drillisch alone, sales rose by 1.1 percent to EUR 3.67 billion, the operating result fell by more than 5 percent to EUR 683.5 million.

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