United Internet AG reported higher profit for the first half of fiscal 2026, driven by sales growth and a stronger operating performance. The company also raised its outlook for the full year, projecting revenue and earnings before interest, taxes, depreciation and amortization growth compared with the prior year.
For investors, the update matters on both fundamentals and momentum: operating earnings increased despite mixed dynamics in its contract base, with fee-based customer numbers up while mobile internet contracts declined.
Key takeaways
- Profit and operating earnings rose: Net income attributable to shareholders increased to 126.51 million euros from 103.24 million euros, while consolidated operating EBIT grew to 342.4 million euros.
- Sales expanded: Consolidated sales rose to 3.09 billion euros from 3.0 billion euros.
- Full-year guidance lifted: United Internet expects fiscal 2026 sales of around 6.25 billion euros and EBITDA of around 1.45 billion euros.
- Contract mix remained mixed: Fee-based customer contracts rose to 30.27 million, but mobile internet contracts fell by around 150,000 during the period.
- Accounting effects influenced earnings quality: Management cited movements in depreciation and amortization, including offsetting changes tied to PPA amortization versus higher amortization of intangibles and depreciation of assets.
What drove the results
United Internet said first-half net income attributable to shareholders climbed to 126.51 million euros from 103.24 million euros. That translated into earnings per share of 0.73 euro, up from 0.59 euro a year earlier.
The company also reported net income from continued operations of 130.60 million euros (or 0.75 euro per share), compared with 83.60 million euros (or 0.48 euro per share) in the prior-year period.
Operating performance improved as consolidated operating EBIT rose 20% year over year to 342.4 million euros. Consolidated operating EBITDA increased 5.1% to 676.0 million euros.
Management linked part of the earnings change to accounting under depreciation and amortization. The company said a decline in depreciation and amortization supported the comparison, while increases in the amortization of intangible assets and depreciation of property, plant and equipment were offset by lower PPA amortization.
Revenue growth and customer trends
Consolidated sales rose to 3.09 billion euros from 3.0 billion euros in the first half of fiscal 2025. On an adjusted basis, consolidated sales increased 3.3%.
On customer metrics, United Internet reported an increase in the number of fee-based customer contracts by 550,000 to 30.27 million. That improvement points to continued engagement and monetization across its customer base.
However, the company reported a decline in mobile internet contracts of around 150,000 during the first half, with about 100,000 recorded in April. At the same time, broadband connections increased by 10,000 over the reporting period, suggesting differing trends across its connectivity segments.
Guidance for fiscal 2026
Looking ahead, United Internet maintained a growth-oriented full-year view. The company expects fiscal 2026 sales to rise to around 6.25 billion euros, up from 6.104 billion euros in the prior year. It also projected operating EBITDA of around 1.45 billion euros, compared with 1.282 billion euros previously.
The guidance implies management sees the first-half improvements extending into the second half, notwithstanding the mobile contract contraction seen during the period.
Market reaction and what to watch next
While the report details earnings, operating metrics, and customer movements, the key investor takeaway is the combination of stronger operating profitability and a raised annual roadmap. Investors will likely focus on whether the company can offset mobile internet contract declines with growth in other categories, particularly broadband and fee-based customer additions.
Going forward, the next items to watch are United Internet’s progress on contract trends through the second half, any updates to depreciation and amortization drivers that could affect earnings comparability, and how management translates first-half momentum into full-year execution. Further clarity will also come from upcoming company communications around operating performance and any guidance refinements, alongside broader market signals tied to telecom demand and the macro environment.
