United Internet AG lowered its revenue forecast on Tuesday due to a challenging outlook for its 1&1 AG telecommunications business.
United Internet cuts outlook
For the nine months ending September 30, net income plunged 81% to €57.3 million, compared to €307.3 million in the same period last year. However, sales increased by 2.0%, reaching €4.66 billion, up from €4.57 billion a year earlier.
The company’s bottom line was impacted by a 4.9% rise in selling expenses, which totaled €721.2 million. Additionally, the share of loss from "associates accounted for using the equity method" widened to €201.1 million, up from €36.1 million.
Outlook was downwardly revised
For the full year, United Internet now expects revenue to reach around €6.35 billion, slightly reduced from its previous forecast of €6.40 billion. In 2023, revenue totaled €6.21 billion.
The revision comes as 1&1 lowered its 2024 service revenue guidance to €3.31 billion, down from the previous estimate of €3.33 billion. United Internet holds approximately 78% of 1&1. It also owns about 64% of Ionos Group SE, a web hosting and domain company.
Ionos, however, maintained its 2024 outlook, forecasting currency-adjusted revenue growth of around 9%.
