This article first appeared on GuruFocus .
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Revenue Growth:0.8% overall growth; service revenue stable; 3.7% increase in sales of smartphones and tablets.
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EBITDA (Consumer Access):Decreased by 11.7%.
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EBITDA (Business Access):Increased by 2.1%.
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Consumer Applications Revenue:Increased by 8.1% to EUR322.6 million.
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Business Applications EBITDA:Increased by 19.8% with a 35.2% EBITDA margin.
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EPS:Increased by 43% to 1.23 due to differences in taxation.
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Free Cash Flow:Increased by EUR18 million to EUR320.6 million in 2025.
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Net Debt:EUR3.2 billion with a leverage of 2.48 at the end of 2025.
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Equity Ratio:43.6%.
Release Date: March 19, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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United Internet AG ( UDIRY ) reported a 0.8% growth in turnover revenue, with a notable 3.7% increase in sales of smartphones and tablets.
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The company achieved a significant 19.8% growth in EBITDA for business applications, driven by strong performance from IONOS subsidiaries.
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United Internet AG ( UDIRY ) successfully increased its customer base by 0.7 million users, with a notable conversion of 310,000 ad-financed free accounts to pay accounts.
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The company plans to increase its turnover to EUR6.25 billion in 2026, with an expected EBITDA of EUR1.45 billion, indicating strong future growth prospects.
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United Internet AG ( UDIRY ) is optimistic about leveraging AI to enhance its services and sees significant opportunities in AI-driven business fields.
Negative Points
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The company experienced a decline in customer contracts, with a reduction of 17,000 in access and 110,000 in broadband accesses.
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EBITDA in the consumer access segment decreased by 11.7%, attributed to changes in the national roaming partner and slower growth in the Vodafone network.
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United Internet AG ( UDIRY ) faced challenges in cloud solutions revenue development, which was behind schedule.
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The company's net debt increased to EUR3.2 billion by the end of 2025, with a leverage ratio of 2.48.
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There is skepticism about the impact of AI on the IONOS business model, with concerns about potential threats from new AI-driven competitors.
Q & A Highlights
Q: Can you provide an update on the planned data center and the revenue development for cloud solutions at IONOS? A: We are still waiting for the tender documents for the potential EU gigafactory, which have been delayed. Regarding cloud solutions, despite some headwinds in the past, we are optimistic about double-digit growth, particularly in the public space, as we have had a strong start to the first quarter.
Q: Why did your tax charge decrease significantly in 2025, and what should we expect going forward? A: The decrease in tax charge is due to the tax group effects from the sale of Versatel to one-on-one. In 2026, this will impact the P&L, but we expect to return to normal levels by 2027.
Q: How do you view the potential threat of AI to the IONOS business model? A: We are optimistic about AI, seeing it as an opportunity rather than a threat. AI can enhance our offerings for small and medium-sized enterprises, and we are integrating AI into our products to improve efficiency and create new business fields.
Q: How is United Internet AG positioned in the US market against hyperscalers like Amazon and Google? A: In the US, we focus on web presence products and productivity tools for small and medium-sized businesses, which are not the primary focus of hyperscalers. Our growth in the US has been strong, and we see more opportunities in this segment.
Q: What are your expectations for consumer applications' EBITDA this year, and is there any plan to sell this business? A: We expect consumer applications' EBITDA to exceed EUR140 million this year, driven by organic growth and operational changes. There are no current plans to sell the business, but we remain open to opportunities if they arise.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
