United Internet AG

For the first half of 2026, management said group EBITDA grew 5.1% to EUR 676 million, and EBIT grew 20%. EPS increased about 60% to EUR 0.775 per share. Cash flow after lease was EUR 129.7 million, about EUR 100 million higher than the prior year. On segment numbers, 1&1 revenue rose 1.6% with service revenue at EUR 1.805 billion and other revenue at EUR 464.8 million; EBITDA increased 5.1% to EUR 382.7 million, with a 16.9% margin. IONOS revenue increased 6.9% to EUR 701.1 million and EBITDA rose 2.6% to EUR 232.6 million, for a 33.2% margin. Mail & Media revenue grew 8.4% to EUR 161.4 million and EBITDA rose 16.7% to EUR 62.9 million, with a 39% margin. The company confirmed 2026 guidance for approximately EUR 6.25 billion revenue, approximately EUR 1.45 billion EBITDA, and cash CapEx of EUR 600 million to EUR 650 million.

Ralph Dommermuth struck an upbeat tone and emphasized that the first half “has panned out very positively.” He framed IONOS as a long-term strategic asset, praised its AI opportunities and own data centers, and said he would not want to separate it from the group. He also argued that Mail & Media fits well with 1&1 because of installed apps, mobile cross-selling, and the potential for eSIM and cloud-storage bundles, saying he would rather deepen integration than spin it off.

Carsten Theurer focused on the financial bridge and balance-sheet effects. He cited group EBITDA of EUR 676 million, EBIT growth of 20%, EPS of EUR 0.775, and free cash flow after lease of EUR 129.7 million, with lower taxes benefiting cash generation. He said net debt was EUR 3.4 billion and leverage was 2.57, with equity ratio at 43.4%, and noted dividend payments, IONOS share buybacks of EUR 84 million, and CapEx as uses of cash. He also explained that AdTech remains a timing issue tied to the 12-month period, and said leverage should trend down by year-end as forecast.

Analysts pressed management on the value of United Internet’s 64% IONOS stake, AI initiatives, and whether Mail & Media should be spun out. Management responded that IONOS has major AI opportunities for SMEs and sees strong advantages from its own cloud infrastructure and sales force, while Mail & Media is generating cash and can be a powerful mobile and eSIM channel because of its large app base. On the eSIM timeline, management said the rollout starts in Q4 and was delayed until devices and identification flows could support a 3-minute activation process. On EBITDA phasing, management said H2 should be stronger because some IONOS offerings will monetize later and 1&1 will benefit from network monetization.