Dear shareholders, employees, and business associates of United Internet,
In the fiscal year 2025, United Internet invested in new customer contracts and the development of existing customer relationships – and thus in sustainable growth. All in all, we succeeded in raising the number of fee-based customer contracts by 700,000 to 29.72 million contracts. Of this amount, 310,000 fee-based contracts were added in the Consumer Applications segment and 460,000 contracts in the Business Applications segment. By contrast, the total number of contracts in the Consumer Access segment fell by 70,000 contracts. As expected, the growth in mobile internet contracts of 40,000 was offset by a decrease in broadband contracts of 110,000.
The United Internet subsidiary IONOS Group SE has decided to sell Sedo GmbH (IONOS business field “AdTech”). By selling the company, the IONOS Group’s management team aims to focus fully on its core business fields “Web Presence & Productivity” and “Cloud Solutions” in the future. As a result of this decision, Sedo is reported as a discontinued operation in accordance with IFRS 5 and no longer included in sales and earnings, but disclosed separately as a discontinued operation . The prior-year sales and earnings figures have been adjusted correspondingly .
Additionally adjusted for the sales contributions of the “Energy” business field sold in mid-October, our sales rose by 1.9% in the fiscal year 2025, from € 5,990.8 million (comparable prior-year figure) to € 6,103.8 million.
At € 1,282.0 million, adjusted EBITDA was 2.4% up on the comparable prior-year figure (€ 1,251.6 million). As in the previous year, expenses included in this figure for the rollout of 1&1’s mobile network amounted to € -265.3 million.
Due to a rise in depreciation, however, there was a slight year-on-year decline in a djusted EBIT of 1.9% to € 585.3 million ( prior year: € 596.8 million). This increase in depreciation to € 696.7 million (prior year: € 654.8 million) resulted mainly from investments in the expansion of 1&1 Versatel’s fiber-optic network and 1&1’s mobile network.
Adjusted earnings per share (EPS) from continued operations rose from € 0.86 to € 1.23. This was largely due to lower tax expenses.
Cash capex amounted to € -730.8 million in 2025 (prior year: € -774.6 million).
There were also numerous developments outside of our day-to-day business in the fiscal year 2025:
In the Consumer Access segment, 1&1’s mobile communications network already reached 27% of all German households in December 2025 – just two years after the launch of mobile services. As a result, the Federal Network Agency’s original target of covering a quarter of households by the end of 2025 was exceeded. We intend to maintain this trajectory and continue to rapidly expand our network. However, we not only made significant progress in network expansion. Last year, we completed the largest
customer migration in German mobile communications history – and in doing so also fulfilled the requirement for “competitive independence” within the specified time frame. To achieve this, we migrated up to 50,000 customers per day to our own network who were previously supplied on the basis of wholesale contracts of other networks – mostly in a particularly user-friendly “over-the-air update” installed automatically overnight. Since November, all 1&1 mobile customers have been surfing and making calls using the 1&1 O-RAN.
In the Business Access segment, 1&1 Versatel continued to invest heavily in its fiber-optic infrastructure and further expanded its network coverage. The fiber-optic network operated by 1&1 Versatel is now over 68,000 km long. This also benefits our Consumer Access segment, as it uses 1&1 Versatel’s fiber-optic network to provide DSL and FTTH connections and to connect antenna locations.
Our GMX and WEB.DE brands in the Consumer Applications segment consolidated their strong market position in 2025 with innovative cloud services and the increased use of artificial intelligence. Almost every second person in Germany uses a GMX or WEB.DE private e-mail account. And here too we are increasingly utilizing innovative AI applications “Made in Germany” that facilitate the digital life of our users. For example, the e-mail inbox is evolving into a smart assistant that writes, translates, summarizes, and organizes e-mails.
In our Business Applications division, we are also pursuing an AI strategy firmly focused on growth, scaling, and digital sovereignty. We are steadily expanding our portfolio of attractive solutions for companies and private users. Last year, we launched IONOS Momentum, our first European AI ecosystem tailored specifically to the needs of small and mid-sized enterprises. AI assistants can handle routine tasks such as phone calls, appointment scheduling, and customer service, as well as creating texts and designs.
During the fiscal year 2025, we also fine-tuned our Group-wide sustainability strategy and systematically drove forward key issues of environmental and social relevance. The focus was on developing a climate strategy for operational emissions with science-based reduction targets in line with the 1.5-degree pathway of the Paris Climate Agreement. In 2026, these targets are to be extended to emissions from our value chain. This will be accompanied by measures to improve energy efficiency, especially for our data centers and the 1&1 O-RAN, and supported by newly introduced ISO-certified energy and environmental management systems.
In the field of governance, we addressed key sustainability risks facing the digital society with a view to protecting our users. In 2025, we focused on the responsible use of artificial intelligence and measures to combat misinformation in order to prevent bias, discrimination, and the spread of fake news – thus helping to promote fact-based opinion-forming and social stability. Our commitment also extends to the “United Internet for UNICEF” foundation, which has raised over € 75 million in donations since 2006 and is dedicated to protecting and promoting the long-term development of children and young people around the world.
On the basis of our figures for 2025, the Management Board and Supervisory Board of United Internet AG will propose a dividend of € 0.50 per share at the Annual Shareholders’ Meeting on May 21, 2026. On the basis of around 172.8 million shares with dividend entitlement (as of December 31, 2025 ), this would result in a total dividend payout for fiscal year 2025 of € 86.4 million. The dividend payout ratio would therefore be 40.8% of adjusted consolidated net income after minority interests for the fiscal year 2025 (€ 211.8 million) and thus lie slightly above the range of our dividend policy.
For our fiscal year 2026, United Internet forecasts that sales will increase to approx. € 6.25 billion (2025: € 6.104 billion). EBITDA is expected to improve to approx. € 1.45 billion (2025: € 1.282 billion). Cash capex is expected to be between € 600 million and € 650 million (2025: €730.8 million).
Following the intra-group sale of 1&1 Versatel GmbH to 1&1 AG at the end of 2025, we will adapt our segment reporting in fiscal year 2026 to the changed internal corporate management and the new segmentation of 1&1. As of January 2026, the “Consumer Access” segment no longer includes the former “1&1 Mobile Network” segment and will be renamed “Consumer & Small Business.” The 1&1 segment “1&1 Mobile Network” forms together with the former “Business Access” segment (1&1 Versatel) the new “Enterprises & Networks” segment. The “Consumer Applications” and “Business Applications” segments will remain unchanged.
We are well prepared for the next steps in our company’s development and upbeat about our future prospects. In view of the past year and the challenges that lie ahead, we would like to express our particular gratitude to all employees for their dedicated efforts as well as to our shareholders and business associates for the trust they continue to place in United Internet AG.
Montabaur, March 2026
The Management Board
Ralph Dommermuth
Carsten Theurer
“Boldly pursuing new paths is in our DNA. The United Internet Group will continue to lead the way with its innovations and leverage the opportunities offered by digitalization for the benefit of our customers and our company.”
RALPH DOMMERMUTH
CEO (since 1988)
Ralph Dommermuth (born in 1963) laid the foundation for today’s United Internet AG with the formation of 1&1 EDV Marketing GmbH in 1988. He originally offered systemized marketing services for smaller software suppliers. He later developed additional marketing services for major clients, such as IBM, Compaq, and Deutsche Telekom. With the advent of the internet, Ralph Dommermuth gradually phased out these marketing services and began developing the company’s own internet services and direct customer relationships. In 1998, the qualified banker took 1&1 to the stock exchange. It was the first IPO of an internet company in Germany. In 2000, Ralph Dommermuth restructured the holding company 1&1 AG & Co. KGaA as United Internet AG and built the company into a leading European internet specialist.
CARSTEN THEURER
CFO (since 2025)
Carsten Theurer (born in 1975) has been a member of the Management Board of United Internet AG since 2025 and is responsible for Shared Services, Finance and Controlling, HR, Risk Management, Internal Audit, Legal, Tax, M&A, and Investment Management. Carsten Theurer previously worked for over 20 years in various divisions of the Schwarz Group, in his last position as Group CFO. In these roles, he accompanied the international growth of the Schwarz Group in the retail sector and played a key role in setting up the company’s own production companies.
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