2.4 Position of the Company
Earnings of United Internet AG
As a pure holding company, the earnings position of United Internet AG is usually dominated by its investment and financial result. In the fiscal year 2022, sales of the parent company amounted to € 0.7 million (prior year: € 0.5 million) and result mainly from services rendered to the Group’s subsidiaries.
Other operating income amounted to € 4.2 million (prior year: € 12.6 million) and mainly results from internal charges to Group companies and the release of accruals.
Other operating expenses amounted to € 20.2 million (prior year: € 12.4 million) and include expenses relating to internal charges for services rendered to Group companies, as well as legal, auditing, and consulting fees.
Income from profit transfer agreements of € 90.6 million (prior year: € 317.5 million) resulted from profit transfers of 1&1 Mail & Media Applications SE amounting to € 87.1 million (prior year: € 314.7 million, incl. special items of € 217.1 million), United Internet Corporate Services GmbH amounting to € 3.4 million (prior year: € 2.7 million), and United Internet Service SE amounting to € 0.1 million (prior year: € 0.2 million).
Income from investments amounted to € 13.8 million (prior year: € 6.7 million) and mainly comprises the dividends of 1&1 AG for 2021 as well as the dividend for the fiscal year 2022 due to same-period profit recognition.
Expenses for loss assumptions of € 6.2 million (prior year: € 0.6 million) relate to the compensation expense of United Internet Investments Holding SE, United Internet Management Holding SE, and United Internet Corporate Holding SE.
The parent company’s result before taxes amounted to € 170.4 million (prior year: € 403.5 million, incl. special items of € 217.1 million from the profit transfer agreement with 1&1 Mail & Media Applications SE).
Income taxes amounted to € 49.7 million (prior year: € 54.1 million).
Net income in the separate financial statements of United Internet AG for the fiscal year 2022 amounted to € 120.7 million (prior year: € 349.4 million incl. special items).
Assets and financial position of United Internet AG
The parent company’s balance sheet total rose from € 6,445.3 million as of December 31, 2021 to € 6,563.9 million on December 31, 2022.
Non-current assets of the parent company amounting to € 5,816.9 million (prior year: € 5,636.9 million) were dominated by financial assets. Shares in affiliated companies were unchanged at € 4,221.9 million. Loans to affiliated companies rose to € 1,595.0 million (prior year: € 1,415.0 million) due to the granting of loans within the Group.
Current assets of the parent company amounting to € 746.9 million (prior year: € 808.4 million) comprise receivables due from affiliated companies and other assets. The receivables due from affiliated companies decreased slightly to € 724.8 million (prior year: € 725.9 million). These mainly comprise receivables within the United Internet Group’s internal cash management system as well as from profit transfer agreements and services received within the United Internet Group. Other assets amounting to € 19.3 million (prior year: € 33.8 million) consist mainly of receivables due from the tax office relating to audits of previous years.
Shareholders’ equity of the parent company amounted to € 3,621.7 million as of December 31, 2022 (prior year: € 3,594.3 million). The increase in equity during the reporting period is due to net income of € 120.7 million, with an opposing effect from the dividend payout of € 93.4 million. The equity ratio fell from 55.8% in the previous year to 55.2% as of December 31, 2022.
The parent company’s accruals of € 8.1 million (prior year: € 9.7 million) mainly comprise accrued taxes amounting to € 3.8 million (prior year: € 1.6 million), as well as other accrued liabilities for employee stock ownership plans, legal, auditing and consulting fees, bonuses, and other items totaling € 4.3 million (prior year: € 8.1 million).
The liabilities of the parent company are shaped in particular by liabilities to banks and liabilities due to affiliated companies. Liabilities to banks increased to € 2,157.2 million in the fiscal year 2022 (prior year: € 1,825.4 million). Bank liabilities comprise two promissory note loans totaling € 1,100 million, syndicated loans totaling € 550 million, drawings from bilateral credit agreements of € 200 million, drawings from bilateral credit facilities of € 300 million, and interest of € 7 million. Liabilities to affiliated companies fell to € 757.7 million (prior year: € 998.9 million) and mainly comprise liabilities from balances within the United Internet Group’s cash pooling system (€ 748.7 million), from profit transfer agreements (€ 6.2 million), and from service arrangements (€ 2.7 million). Other liabilities of € 3.4 million (prior year: € 4.6 million) are mainly sales tax liabilities.
Cash flow of the parent company’s financial statements is dominated by cash flows from the profit transfer agreements, as well as the dividends of investments.
Management Board’s overall assessment of the current business situation of the parent company
Due to its role as the Group’s holding company, the economic position of United Internet AG at parent company level is mainly influenced by its investment and financial result. The above statements on the Group’s economic position therefore also apply qualitatively for United Internet AG itself.