United Internet and its unit 1&1 fall on FY results below expectations

1&1 AG

14/02/2025 07:26

** Shares in United Internet  UTDI.DE  and its mobile and
broadband unit 1&1  1U1.DE  slump around 10% in early Frankfurt
trade, after their FY results missed market expectations
    ** United Internet posts FY EBITDA of EUR 1.29 bln ($1.35
billion), missing its own guidance of around EUR 1.38 bln and
consensus of EUR 1.37 bln cited by a trader
    ** The earnings are weighed down by higher expenses for the
roll-out of the 1&1 mobile network 
    ** "Ongoing negative impact of 1&1 network will weigh," the
local trader says
    ** 1&1  1U1.DE  also misses FY EBITDA expectations as it
reports EUR 591 mln vs forecast of 669 mln in a poll cited by
the trader
    ** "Disappointing prelims will weigh on shares after their
bounce. The network built up is the sword of Damocles hanging
over the shares," the trader adds
    ** United Internet and 1&1 both sit at the bottom of their
respective indices: mid-cap  .MDAXI  and small-cap  .SDAXI 


($1 = 0.9555 euros)

 (Reporting by Ozan Ergenay)
 ((ozan.ergenay@thomsonreuters.com))