United Internet AG

Earnings Release • May 12, 2011

News Details

Ad-hoc | 12 May 2011 07:09

United Internet AG: Successful start to FY 2011 for United Internet

United Internet AG / Key word(s): Quarter Results

12.05.2011 07:09

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Sales up 7.7% to record figure of EUR 498.6 million - EBITDA maintains high
prior-year level at EUR 90.5 million - Earnings per share (EPS) grow 17.6%
to EUR 0.20

Montabaur, May 12, 2011. The Management Board of United Internet AG (ISIN
DE0005089031) today announced the consolidated results according to IFRS
for the first quarter of 2011.

Group development
Consolidated sales of United Internet AG grew by 7.7% in the first quarter
of 2011, from EUR 462.8 million last year to EUR 498.6 million. United
Internet also achieved strong growth in customer contracts: with the
addition of 210,000 new contracts, growth easily exceeded the first quarter
of 2010 (180,000 new contracts). Despite increased sales and marketing
expenses in this connection of EUR 10.3 million compared to Q1/2010 and
high costs for the development of new products, United Internet achieved
very good earnings. With EBITDA of EUR 90.5 million (prior year: EUR 90.3
million) and EBIT of EUR 70.3 million (prior year: EUR 70.7 million),
earnings reached the same high level as last year. Earnings before taxes
(EBT) grew by 13.5% from EUR 57.1 million to EUR 64.8 million. Earnings per
share (EPS) improved by 17.6% from EUR 0.17 to EUR 0.20.

Group development Q1 2010 Q1 2011 Change
Quarterly comparison (in EUR million)
Sales 462.8 498.6 + 7.7%
EBITDA 90.3 90.5 + 0.2%
EBIT 70.7 70.3 - 0.6%
EBT 57.1 64.8 + 13.5%
EPS (in EUR) 0.17 0.20 + 17.6%

Development of business in the 'Access' segment
As a result of the positive development in customer figures, Access sales
grew by 6.8% to EUR 321.2 million. Due to increased costs for new customer
acquisition, EBITDA and EBIT were slightly down on the previous year at EUR
31.1 million (prior year: EUR 31.7 million) and EUR 23.8 million (prior
year: EUR 25.2 million).

Development of Access segment Q1 2010 Q1 2011 Change
Quarterly comparison (in EUR million)
Sales 300.8 321.2 + 6.8%
EBITDA 31.7 31.1 - 1.9%
EBIT 25.2 23.8 - 5.6%

The number of fee-based Access contracts grew by a total of 80,000
contracts, from 3.63 million as of December 31, 2010 to 3.71 million as of
March 31, 2011.

Customer contracts in Access segment March 31, Dec. 31, March 31,
(in million) 2010 2010 2011
Access, total 3.50 3.63 3.71
of which DSL complete (ULL) 1.91 2.32 2.37
of which Mobile Internet 0.09 0.27 0.37
of which narrowband / T-DSL / R-DSL 1.50 1.04 0.97

Development of business in the 'Applications' segment
Applications sales grew strongly by 9.6% to EUR 177.3 million. Despite high
expenditure for the development of new Cloud products, preparations for the
De-Mail roll-out, and increased sales and marketing expenses, segment
EBITDA was only slightly down on the previous year at EUR 58.9 million
(prior year: EUR 60.5 million), while segment EBIT reached EUR 46.0 million
(prior year: EUR 47.4 million).

Development of Applications segment Q1 2010 Q1 2011 Change
Quarterly comparison (in EUR million)
Sales 161.8 177.3 + 9.6%
EBITDA 60.5 58.9 - 2.6%
EBIT 47.4 46.0 - 3.0%

The number of fee-based Applications contracts grew by 130,000 to 6.26
million (of which 2.52 million abroad). Ad-financed accounts rose from 28.0
million to 28.3 million.

Customer contracts in Applications March 31, Dec. 31, March 31,
segment (in million) 2010 2010 2011
Total fee-based contracts 5.83 6.13 6.26
of which domestic 3.53 3.68 3.74
of which foreign 2.30 2.45 2.52
Ad-financed accounts 27.0 28.0 28.3

Outlook
Against the backdrop of its successful start to the fiscal year, United
Internet confirms its forecast for 2011 and expects consolidated sales to
exceed EUR 2 billion for the first time. Sales growth is expected to reach
around 5% in the Access segment and around 10% in the Applications segment.
The company aims to add a total of 700,000 new fee-based customer contracts
in 2011. United Internet will continue to pursue its business strategy
geared toward sustainable growth during the year and invest heavily in new
business fields and customer growth. Despite the high costs associated with
these projects, EBITDA in 2011 is expected to reach the level of 2010 (EUR
357.7 million). EBT is likely to be around EUR 250 million and EPS around
EUR 0.80.

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Language: English
Company: United Internet AG
Elgendorfer Straße 57
56410 Montabaur
Deutschland
Phone: +49 (0)2602 / 96 - 1100
Fax: +49 (0)2602 / 96 - 1013
E-mail: info@united-internet.de
Internet: www.united-internet.de
ISIN: DE0005089031
WKN: 508903
Indices: TecDAX
Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard);
Freiverkehr in Düsseldorf, Hamburg, Hannover, München,
Stuttgart

End of Announcement DGAP News-Service

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