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 2025, sales of the parent company amounted to € 0.9 million (prior year: € 0.6 million) and result mainly from internal cost allocation.
Other operating income amounted to € 47.7 million (prior year: € 6.4 million) and – in addition to non-period income and internal cost allocation – mainly comprises income from the disposal of financial investments of € 45.0 million (prior year: € 5.6 million). This results from subsequent purchase price adjustments of United Internet AG vis-à-vis the former IONOS co-shareholder Warburg Pincus from the sale of all shares held by Warburg Pincus in IONOS Group SE in the fiscal year 2025.
Wages and salaries rose to € 3.2 million (prior year: € 1.0 million). The increase is mainly attributable to the first-time recognition of the accrual for SARs granted in fiscal year 2025.
Other operating expenses amounted to € 14.8 million (prior year: € 15.5 million) and mainly 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 € 120.6 million (prior year: € 112.7 million) result from profit transfers of 1&1 Mail & Media Applications SE amounting to € 113.8 million (prior year: € 110.0 million), United Internet Corporate Services GmbH amounting to € 6.6 million (prior year: € 2.5 million), and United Internet Service SE amounting to € 0.2 million (prior year: € 0.2 million).
Income from investments amounted to € 7.9 million (prior year: € 13.8 million). The decline is mainly attributable to the fact that, in addition to the regular dividend of 1&1 AG for the fiscal year 2023, the dividend for the fiscal year 2024 was also recognized in the previous year due to same-period profit recognition. In addition to a dividend of € 0.2 million for newly acquired dividend-bearing shares of 1&1 AG in April 2025, dividend entitlements for fiscal year 2025 were also recognized in income in fiscal year 2025 due to same-period profit recognition.
Expenses for loss assumptions of € 412.7 million (prior year: € 486.5 million) related to the compensation expense of United Internet Management Holding SE amounting to € 372.5 million (prior year: € 148.8 million), of United Internet Investments Holding AG & Co. KG amounting to € 40.1 million (prior year: € 337.7 million incl. a loss of € 316.0 million from the dilution of shares in Kublai), and of United Internet Corporate Holding SE amounting to € 0.09 million (prior year: € 0.03 million).
The loss of € 372.5 million incurred by United Internet Management Holding in 2025 is primarily attributable to the intra-group sale of United Internet Management Holding and its subsidiary 1&1 Versatel to 1&1 (with economic effect as of the end of November 30, 2025), which led to a non-scheduled impairment loss on the investment in 1&1 Versatel of € 246.1 million at the level of United Internet Management Holding. Further details can be found in chapter 2.1 “Macroeconomic and sector-specific conditions” under “Significant events” and in the Notes to the Annual Financial Statements of the Parent Company 2025 according to HGB.
The loss of € 40.1 million incurred by United Internet Investments Holding in 2025 is primarily attributable to a non-scheduled writedown on its investment in Kublai amounting to € 37.2 million.
Income taxes amounted to tax income of € 3.5 million (prior year: tax income of € 17.0 million).
Due to high – and in some cases non-scheduled – expenses for loss assumptions, the net loss in the separate financial statements of United Internet AG for the fiscal year 2025 amounted to € -260.8 million (prior year: € -365.3 million).
The parent company’s balance sheet total decreased from € 5,777.2 million on December 31, 2024 to € 5,486.9 million as of December 31, 2025.
Non-current assets of the parent company amounting to € 5,133.2 million (prior year: € 5,442.3 million) were dominated by financial assets. Shares in affiliated companies fell from € 4,502.2 million to € 3,193.1 million, while loans to affiliated companies rose from € 940.0 million to € 1,940.0 million. Both changes in financial assets result mainly from the sale of United Internet Management Holding SE, including its wholly-owned subsidiary 1&1 Versatel GmbH, to 1&1 AG in the course of Group restructuring. Due in particular to this share sale, shares in affiliated companies decreased by around € 1.3 billion compared with the previous year, while loans to affiliated companies increased year-on-year by around € 1.0 billion.
Current assets of the parent company amounting to € 353.7 million (prior year: € 334.9 million) comprise receivables due from affiliated companies and other assets. Receivables due from affiliated companies increased to € 314.1 million (prior year: € 222.0 million). They comprise receivables as part of the cash management system of € 75.6 million (prior year: € 500.1 million), receivables from sales tax grouping of € 4.2 million (prior year: 59.0 million), net liabilities to affiliated companies from profit transfer agreements of € -33.3 million (prior year: € -335.0 million), and other receivables due from affiliated companies (mainly loss assumption receivable due from 1&1 from the sale of United Internet Management Holding) amounting to € 267.6 million (prior year: € -2.2 million). Other assets amounting to € 30.3 million (prior year: € 33.0 million) consist mainly of receivables due from the tax office. Cash and cash equivalents amounted to € 9.3 million (prior year: € 80.0 million).
Shareholders’ equity of the parent company amounted to € 2,477.0 million as of December 31, 2025 (prior year: € 3,066.2 million). The decrease in equity during the reporting period is mainly due to the dividend payout of € 328.4 million and the net loss of € 260.8 million. The equity ratio declined correspondingly from 53.1% in the previous year to 45.1% as of December 31, 2025.
The parent company’s accruals of € 22.4 million (prior year: € 9.9 million) mainly comprise accrued taxes amounting to € 17.2 million (prior year: € 6.2 million), as well as other accrued liabilities for employee stock ownership plans, legal, auditing and consulting fees, bonuses, and other items totaling € 5.2 million (prior year: € 3.7 million).
The liabilities of the parent company are shaped in particular by liabilities due to banks and to affiliated companies. In the fiscal year 2025, liabilities to banks increased to € 2,455.0 million (prior year: € 2,027.2 million). Bank liabilities comprise four promissory note loans totaling € 1,217 million (prior year: € 1,217 million), various syndicated loans totaling € 890 million (prior year: € 700 million), bilateral credit agreements of € 245 million (prior year: € 0), credit facilities of € 76 million (prior year: € 94 million), and interest of € 27 million (prior year: € 16 million). Liabilities to affiliated companies fell to € 516.4 million (prior year: € 608.1 million). They mainly comprise liabilities from the United Internet Group’s cash pooling system, liabilities due to affiliated companies from profit transfer agreements, and liabilities from sales tax grouping. Other liabilities of € 5.2 million (prior year: € 65.9 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.
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