In view of the dynamic market development of fiber-optic connections and the mobile internet, as well as cloud and AI applications, our growth opportunities are clearly apparent: universally accessible, increasingly powerful broadband connections enable us to develop constantly new and increasingly sophisticated cloud and AI applications and to make these available to our customers. These internet-based programs for end users and companies will remain our growth drivers over the coming years – both as stand-alone products in our Applications division as well as in combination with landline and mobile access products in our Access division.
With our many years of experience as an access and applications provider, our expertise in software development, the operation of networks and data centers, marketing, sales, and customer support, as well as our strong and well-known brands, and our customer relationships with millions of private users, freelancers, and small companies in Germany and abroad, we are well placed to exploit the further market growth in our business fields.
In the Access division, our operations are pooled in the segments Consumer Access and Business Access.
The Consumer Access segment comprises landline-based broadband products (including the respective applications, such as home networks, online storage, Smart Home, IPTV, and video-on-demand) and mobile internet products, which mainly target private users.
These internet access products are offered to our customers as subscription contracts with fixed monthly fees (and variable, volume-based charges).
With the broadband products of the 1&1 brand (especially VDSL/vectoring and fiber-optic connections), we are one of Germany’s leading suppliers.
We use 1&1 Versatel’s fiber-optic network as the transport network, and for both VDSL/vectoring connections and direct fiber-optic connections (FTTH) we use city carriers and Deutsche Telekom (mainly Layer-2) for the “last mile”.
We are also one of the leading providers of mobile internet products in Germany.
1&1 operates a powerful mobile network, which is used by over 12 million customers. In December 2025, just two years after the launch of mobile services, the 1&1 mobile network reached over 27% of all German households and is being continuously expanded. Wherever 1&1 does not yet have sufficient mobile coverage during the years of network expansion, the company uses national roaming. A national roaming partnership with Vodafone was launched in late August 2024. National roaming via Vodafone has been used by all 1&1 mobile customers since late 2025. Prior to this, the national roaming advance services were procured from Telefónica.
Our mobile internet products are marketed via the premium brand 1&1 as well as via discount brands, such as winSIM and yourfone, which enable us to target a wide range of specific user groups in the mobile communications market.
In addition to the operation and expansion of the 1&1 mobile network and the migration of customers to our own network, the Consumer Access segment once again focused on adding further valuable mobile internet contracts in the fiscal year 2025, while a decline in broadband contracts was expected.
There was a corresponding decrease in the number of fee-based contracts in the Consumer Access segment of 70,000 to 16.32 million contracts in the fiscal year 2025. The increase in mobile internet contracts of 40,000 was offset by an expected decline of 110,000 in the number of broadband contracts.
Development of Consumer Access contracts in the fiscal year 2025
Consumer Access, total contracts
16.32
16.39
- 0.07
thereof Mobile Internet
12.48
12.44
+ 0.04
thereof broadband connections
3.84
3.95
- 0.11
in million
Dec. 31, 2025
Dec. 31, 2024
Change
With our strong brands, innovative products, customer-oriented services, flexible pricing policy, and our excellent value for money, we believe the Consumer Access segment is also well positioned for the future. In addition to the rollout of the 1&1 mobile communications network, we will continue to focus on marketing our mobile internet products and broadband connections in 2026.
In the Business Access segment, 1&1 Versatel offers a wide range of telecommunication products and solutions for business customers.
The core of the business model is a modern fiber-optic network with a length of over 68,000 km, which is one of the largest networks in Germany a nd is constantly being expanded.
1&1 Versatel uses this network to offer telecommunication products – from standardized fiber-optic direct connections to tailored ICT solutions (voice, data and network solutions) – to companies and local authorities. In addition, the 1&1 fiber-optic network is used to provide 1&1 DSL and FTTH connections and to connect antenna locations. Infrastructure services (wholesale) for national and international carriers are also provided.
In the fiscal year 2025, the key topics in the Business Access segment were the expansion of the fiber-optic network and the addition of further sites. In total, the network was expanded from 66,376 km in the previous year to a length of 68,455 km. In 2025, the number of sites connected to the fiber-optic network increased from 27,797 in 2024 to 29,686.
In 2026, the fiber-optic network is set to be further expanded and the number of customers increased.
The development of the German telecommunications market is of particular importance for the Access division. The industry association Bitkom forecasts that the total market is likely to grow by 1.2% (prior year: 1.2%) to € 75.1 billion in 2026.
Telecommunications services continue to account for the largest share, with an increase in revenue of 1.3% (previous year: 1.4%) to € 54.1 billion. By contrast, sales of end-user devices declined slightly again by -1.2% (previous year: -2.6%) to € 12.5 billion, as smartphones are increasingly being used for longer durations. Investment in telecommunications infrastructure continues to develop much more dynamically, with an expected increase of 4.6% (previous year: 6.6%) to € 8.5 billion.
Market forecast: telecommunications market in Germany
Telecommunication revenues
75.1
74.2
+ 1.2%
in € billion
2026e
2025
Source: Bitkom, January 2026
The Applications division comprises United Internet’s activities in the segments Consumer Applications and Business Applications.
Applications for home users are pooled in the Consumer Applications segment. These mainly comprise Personal Information Management applications (e-mail, to-do lists, appointments, addresses), online storage (cloud) , and office software.
By steadily expanding our portfolio, we have developed the GMX and WEB.DE brands – the most widely used e-mail providers for German consumers for many years now – from pure e-mail service providers into complete command centers for communication, information, and identity management. And here too we are increasingly utilizing innovative AI applications “Made in Germany” that facilitate our digital lives. For example, the e-mail inbox is evolving into a smart assistant that writes, translates, summarizes, and organizes e-mails.
Our consumer applications are nearly all developed in-house and run at the Group’s own data centers. The products are offered as fee-based subscriptions (pay accounts) or in the form of ad-financed free accounts. These free accounts are monetized via online advertising, which is marketed by United Internet Media.
With their ad-financed applications and fee-based consumer applications, GMX and WEB.DE are primarily active in Germany, Austria, and Switzerland, where they are among the leading players. We are driving our international expansion with mail.com. In addition to the USA, mail.com targets users in the UK, France, and Spain.
Activities in the Consumer Applications segment focused on the further development of data-driven business models and the expansion of customer relationships in 2025. The number of pay accounts rose by 310,000 to 3.35 million in the fiscal year 2025. At 38.68 million, however, ad-financed free accounts were 250,000 below the figure for December 31, 2024 (38.93 million), due to the high conversion rate to pay accounts. In total, the number of accounts rose by 60,000 to 42.03 million.
Development of Consumer Applications accounts in the fiscal year 2025
Consumer Applications, total accounts
42.03
41.97
+ 0.06
thereof with Premium Mail subscription (contracts)
2.46
2.22
+ 0.24
thereof with Value-Added subscription (contracts)
0.89
0.82 (1)
+ 0.07
thereof free accounts
38.68
38.93
- 0.25
(1) Contract figures as of September 30,2025 and as of December 31, 2024 excluding 0.02 million Energy contracts (value-added subscription)
With its strong and specialized brands, constantly growing portfolio of cloud and AI applications, high data privacy and security standards, and already established business relationships with millions of home users, our Consumer Applications segment is well positioned to exploit emerging market opportunities in the applications business with home users, as well as in the advertising-oriented big data business.
In the fiscal year 2026, the key topics will continue to be the expansion of data-driven business models and the marketing of fee-based premium products.
In the Business Applications segment, IONOS opens up online business opportunities for freelancers and SMEs, while also helping them to digitize their processes. It offers a comprehensive range of powerful applications, such as domains, websites, web hosting, servers, e-shops, group work, online storage (cloud), and office software, which can be used via subscription agreements. In addition, cloud and AI solutions, as well as cloud infrastructure are offered.
Our business applications are developed at in-house development centers or in cooperation with partner firm s and operated at the Group’s own data centers. IONOS is also a leading global player in this segment with activities in various European countries (Germany, France, the UK, Spain, Italy, the Netherlands, Austria, Poland, Hungary, Romania, Bulgaria, Czech Republic, Slovakia, and Sweden), as well as in North America (Canada, Mexico, USA).
IONOS footprint
Our business applications are marketed to specific target groups via the brands IONOS, Arsys, Fasthosts, home.pl, InterNetX, STRATO, united-domains, and World4You. In addition, we22 offers other hosting suppliers a white-label website builder for the creation of high-quality websites.
In the discontinued AdTech division, which is being sold, Sedo offers a platform for traffic monetization and professional services relating to active domain management.
In 2025, the Business Applications segment focused on up- and cross-selling measures for existing customers as well as the acquisition of new customers. In addition, our products were enhanced with additional AI features and IONOS Momentum, a system with selected AI assistants, was launched.
The total number of fee-based contracts for business applications increased by 460,000, resulting from 170,000 new contracts in Germany and 290,000 abroad. The total number of contracts therefore rose to 10.05 million.
Development of Business Applications contracts in the fiscal year 2025
Business Applications, total contracts
10.05
9.59
+ 0.46
thereof in Germany
4.80
4.63
+ 0.17
thereof abroad
5.25
4.96
+ 0.29
With our strong and specialized brands, a steadily growing portfolio of web hosting and cloud applications, and existing relationships with millions of home users, freelancers, and small businesses, we are also well positioned in our Business Applications segment. We aim to further exploit the opportunities offered by the web hosting and cloud computing market for business clients – in Germany and abroad. I n 2026, t he segment will focus on the further expansion of business with existing customers and the acquisition of new high-quality customer relationships. It also aims to grow its cloud business in particular.
In this regard, the trend toward the increasing use of web hosting and cloud services is working in our favor.
According to the market report “Web Hosting Services Market Size, Share & Industry Analysis” published by Fortune Business Insights, global sales of web hosting services are expected to grow by 19.7% to around USD 178.8 billion in the fiscal year 2026 – following growth of 18.1% in 2025.
Market forecast: global web hosting services
Sales of global web hosting services
178.76
149.30
+ 19.7%
in $ billion
Source: Fortune Business Insights; Web Hosting Services Market Size, Share & Industry Analysis, Update December 2025
And further dynamic growth is also expected for the cloud services market. According to the market report “Cloud Computing Market Size,” Precedence Research expects further global growth for cloud services of 21.2% to around USD 1,106.3 billion in 2026.
Market forecast: global cloud services
Global sales of cloud services
1,106.28
912.77
+ 21.2%
Source: Precedence Research; Cloud Computing Market Size, Share, and Growth Forecast, Update October 2025
The opportunities for the refinancing of free applications via advertising also continue to be attractive. After an increase in online advertising in Germany of 10.6% in 2025, PricewaterhouseCoopers expects further growth in 2026 with an increase in total market volume (mobile advertising and desktop advertising) of 8.9% to around € 23.4 billion.
Market forecast: online advertising in Germany (mobile advertising & desktop advertising)
Online advertising revenues
23.36
21.45
+ 8.9%
Source: PricewaterhouseCoopers, German Entertainment and Media Outlook 2025 – 2029, June 2025
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