United Internet, unit 1&1 slump after outlook cut

1&1 AG

05/08/2024 09:10

** Shares in German internet services company United
Internet  UTDI.DE  and its mobile and broadband unit 1&1
 1U1.DE  fall 16.3% and 15.2%, respectively, after United
Internet cut its 2024 outlook on Friday
    ** United Internet now sees 2024 sales of around 6.4 bln
euros ($7.02 bln) vs around 6.5 bln previously, and EBITDA of
around 1.38 bln euros vs about 1.42 bln previously
    ** It says H1 EBITDA was affected by increased expenses for
the expansion of the 1&1 mobile network, amounting to 111 mln
euros vs 40.8 mln last year
    ** The outlook is also hit by after-effects of a temporary
outage of the 1&1 network at the end of May, it adds
    ** A local trader says the cut was "not necessarily
expected" and the new goals are clearly below consensus
    ** United Internet falls to the bottom of Germany's mid-cap
index  .MDAXI  and 1&1 to the bottom of Germany's small-cap
index  .SDAXI 
    ** Both stocks are on track for their worst day since
September 2020 if the losses persist

($1 = 0.9123 euros)

 (Reporting by Tristan Veyet)
 ((Tristan.chabba@thomsonreuters.com))