United Internet 9M Adj. Earnings Down; Lifts Annual EBITDA View, Backs Sales Outlook
United Internet AG (UDIRF.PK), a German telecom firm, on Friday registered a decline in adjusted earnings for the first-nine month period of 2023, mainly due to higher depreciation. However, the company posted a rise in sales.
For the full year, the company has revised up its EBITDA outlook, while reiterating sales guidance.
For the nine-month period, operating income per share declined to 1.23 euros from 1.59 euros in 2022, due to a lower result from associated companies, as well as the impact of increased interest rates on the financial result.
Adjusted EBIT was 599.5 million euros, lesser than 625.2 million euros last year. This was mainly due to depreciation of 48.8 million euros, especially on investments in the expansion of 1&1 Versatel’s fiber-optic network and 1&1’s mobile network.
Adjusted EBITDA stood at 995.9 million euros as against last year’s 986.5 million euros.
United Internet posted sales of 4.588 billion euros, 4.7 percent higher than 4.384 billion euros in the prior-year period.
Capital expenditures, excluding M&A, rose to 461.5 million euros from 348.6 million euros, due to the high level of investment, especially in the expansion of the fiber-optic network and the mobile network.
Looking ahead, for the full year, the company now expects a slight year-on-year increase in EBITDA against its previous outlook of “on a par with the previous year”.
For the full-year 2022, the company had recorded EBITDA of 1.272 billion euros.
This updated guidance continues to include start-up costs of around 120 million euros against last year’s 52 million euros for the rollout of 1&1’s mobile network.
United Internet still projects consolidated sales of around 6.2 billion euros. For 2022, the telecom firm had posted consolidated sales of 5.915 billion euros.
The company said that it continues to anticipate capital expenditures, excluding M&A transactions, of approximately 800 million euros. For 2022, the company’s capital expenditures stood at 681 million euros.
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