Quarterly Report • May 12, 2021
Quarterly Report
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Interim Statement Q1 2021
| March 31, 2021 | March 31, 2020 | Change | |
|---|---|---|---|
| NET INCOME (in € million) | |||
| Sales | 1,392.2 | 1,329.4 | + 4.7% |
| EBITDA(1) | 312.1 | 300.8 | + 3.8% |
| EBIT(1) | 196.2 | 184.2 | + 6.5% |
| EBT(2) | 195.9 | 172.9 | + 13.3% |
| EPS (in €)(2) | 0.58 | 0.47 | + 23.4% |
| BALANCE SHEET (in € million) | |||
| Current assets | 1,614.9 | 1,415.5 | + 14.1% |
| Non-current assets | 7,597.1 | 7,606.9 | - 0.1% |
| Equity | 5,085.9 | 4,713.6 | + 7.9% |
| Equity ratio | 54.5% | 52.2% | |
| Total assets | 9,335.9 | 9,022.3 | + 3.5% |
| CASH FLOW (in € million) | |||
| Operative cash flow | 241.9 | 231.9 | + 4.3% |
| Cash flow from operating activities | 135.7 | 164.9 | - 17.7% |
| Cash flow from investing activities | - 87.4 | - 46.2 | |
| Free cash flow(2) | 43.9 | 96.3 | - 54.4% |
| EMPLOYEES | |||
| Total headcount as of March 31 | 9,842 | 9,359 | + 5.2% |
| thereof Germany | 8,068 | 7,741 | + 4.2% |
| thereof abroad | 1,774 | 1,618 | + 9.6% |
| SHARE (in €) | |||
| Share price as of March 31 (Xetra) | 34.20 | 26.87 | + 27.3% |
| CUSTOMER CONTRACTS (in million) | |||
| Access, total contracts | 14.97 | 14.43 | + 0.54 |
| thereof mobile internet | 10.66 | 10.10 | + 0.56 |
| thereof broadband connections | 4.31 | 4.33 | - 0.02 |
| Consumer Applications, total accounts | 41.95 | 40.71 | + 1.24 |
| thereof with Premium Mail subscription (contracts) | 1.66 | 1.54 | + 0.12 |
| thereof with Value-Added subscription (contracts) | 0.74 | 0.73 | + 0.01 |
| thereof free accounts | 39.55 | 38.44 | + 1.11 |
| Business Applications, total contracts | 8.56 | 8.21 | + 0.35 |
| thereof Germany | 4.13 | 3.93 | + 0.20 |
| thereof abroad | 4.43 | 4.28 | + 0.15 |
| Fee-based customer contracts, total | 25.93 | 24.91 | + 1.02 |
(1) 2021 without a (non-period) positive effect on earnings from Q3 and Q4 2020 (EBITDA and EBIT effect: € +34.4 million)
(2) 2021 without a (non-period) positive effect on earnings from Q3 and Q4 2020 (EBT effect: € +34.4 million; EPS effect: € +0.10); 2020 without impairment reversals Tele Columbus (EBT effect: € -15.1 million; EPS effect: € -0.08)
(3) Free cash flow is defined as cash flow from operating activities, less capital expenditures, plus payments from disposals of intangible assets and property, plant and equipment; Reporting 2020 and 2021 incl. the repayment portion of lease liabilities, which have been reported under cash flow from financing activities since the fiscal year 2019 (IFRS 16)
FOR THE FIRST THREE MONTHS OF 2021
FINANCIAL CALENDAR / IMPRINT
4
United Internet AG got off to a good start in its fiscal year 2021. In the first quarter of 2021, we made further investments in new customer contracts and the expansion of existing customer relationships, and thus in sustainable growth. In total, we increased the number of fee-based customer contracts by a further 280,000 contracts to a current 25.93 million. Of this total, 140,000 contracts were added in the Consumer Access segment and 110,000 contracts in the Business Applications segment. A further 30,000 contracts and 150,000 ad-financed free accounts were added in the Consumer Applications segment.
Consolidated sales grew by 4.7% in the first quarter of 2021, from € 1,329.4 million in the previous year to € 1,392.2 million.
In the first quarter of 2021, EBITDA amounted to € 346.5 million and EBIT to € 230.6 million. These figures include an (out-of-period) positive effect of € 34.4 million from the fiscal year 2020. On February 15, 2021, 1&1 Drillisch accepted Telefónica Germany's offer – improved following review by the EU Commission – for national roaming and thus also retroactively as of July 1, 2020 for the related MBA MVNO advance services. The prices offered include annually decreasing data prices again, similar to the pricing mechanisms of the first five years of the MBA MVNO agreement. The offer accepted by 1&1 Drillisch is currently being transposed into a national roaming agreement.
Adjusted for this (out-of-period) positive effect on earnings from the new advance service prices, our key earnings figures developed as follows: operating EBITDA for the Group improved by 3.8%, from € 300.8 million in the same period last year to € 312.1 million in the first quarter of 2021, and operating EBIT by 6.5% from € 184.2 million to € 196.2 million. These earnings figures include initial costs for the construction of our 5G network of € -7.2 million (prior year: € -2.8 million), as well as the announced investments of IONOS – above all for a product and sales drive in its cloud business and for further international expansion – amounting to € -10.1 million.
EPS amounted to € 0.68. Without consideration of the (out-of-period) positive effect on earnings from the new advance service prices (EPS effect: € +0.10) and the Tele Columbus impairment charge in the previous year (EPS effect: € -0.08), operating EPS improved by 23.4% from € 0.47 in the same period last year to € 0.58, while operating EPS before PPA rose by 15.3% from € 0.59 to € 0.68.
Apart from our operating business and the aforementioned national roaming negotiations, the first quarter of 2021 was dominated by measures for the expansion of our fixed network coverage. These include DSL and VDSL connections, but in future also an increasing number of fiber-optic household connections (fiber-to-the-home/FTTH). In this connection, we reported in our ad-hoc announcement of February 15, 2021 that 1&1 Drillisch planned to expand its fiber-optic offerings and would in future receive VDSL and FTTH advance services from its affiliate 1&1 Versatel. For this purpose, 1&1 Drillisch has entered into an agreement with 1&1 Versatel regarding the long-term purchase of FTTH and VDSL complete packages including Voice and IPTV effective from April 1, 2021. At the same time, 1&1 Versatel has entered into an agreement with Deutsche Telekom on the use of its FTTH and VDSL connections for households. These enable 1&1 Versatel to provide FTTH/VDSL complete packages for 1&1 Drillisch, as 1&1 Versatel's nationwide fiber-optic transport network is largely connected to the local broadband networks of Deutsche Telekom. In addition to the existing access to FTTH connections of well-known city carriers, 1&1 Versatel will thus have initial access to approx. 750,000 additional FTTH connections. The number of marketable FTTH connections of Deutsche Telekom is expected to increase by an average of 2 million households per year in future. FTTH connections for private households enable bandwidths of up to 1 Gbit/s. Households not yet equipped with FTTH will be supplied with our VDSL connections (up to
5
250 Mbit/s). By signing this agreement, we have taken a further step toward our goal of providing an ever-growing number of households with guaranteed gigabit speeds as fiber-optic becomes more and more the standard for fast communication.
Together with Morgan Stanley Infrastructure Partners, we are also supporting the implementation of Tele Columbus's Fiber Champion strategy. In a first step, Kublai GmbH (a bidding company backed by Morgan Stanley) submitted a voluntary public takeover offer for the Tele Columbus shares. After the successful completion of the takeover bid, we contributed our Tele Columbus shares to Kublai in April 2021 and at the same time resolved to raise our stake in Kublai to 40%. After closing the transaction, Kublai currently holds around 92% of the Tele Columbus shares. Part of the new Fiber Champion strategy of Tele Columbus is to open up its broadband network for cooperation partners. In view of this, 1&1 Drillisch has signed a binding preliminary agreement with Tele Columbus to use the latter's cable/fiber-optic network as a pre-service for its broadband products, enabling it to tap further target groups via fiber-optic and, for the first time, also via cable connections.
Last but not least, we also strengthened our Business Applications segment in early 2021 with the acquisition of the Cologne-based company we22 AG, which develops software for the creation, maintenance, and hosting of websites. we22 is best-known for its white-label website builder CM4all. With over 25 language versions, CM4all has been an essential part of the product offering of over 50 hosting providers worldwide since 2000. Under its Web4Business brand, we22 also offers website creation and online marketing services for small businesses and freelancers in Germany. we22's products and services will also be made available to IONOS customers in the future. Moreover, CM4all will continue to be offered as a white-label solution for other internet providers and business customers.
On completion of the first quarter, we can confirm our full-year guidance for 2021 and continue to expect sales growth to approx. € 5.5 billion and an increase in EBITDA to approx. € 1.22 billion (without consideration of the aforementioned out-of-period effect on earnings of € 34.4 million).
We are well prepared for the next steps in our Company's development and upbeat about our prospects for the remaining months of the fiscal year. In view of the successful start to the year, we would like to express our heartfelt gratitude to all employees for their dedicated efforts as well as to our shareholders and business associates for the trust they continue to place in United Internet AG.
Montabaur, May 11, 2021
Ralph Dommermuth
Development of the Consumer Access segment
The number of fee-based contracts in the Consumer Access segment rose by a further 140,000 contracts to 14.97 million in the first quarter of 2021. Broadband connections remained stable at 4.31 million, while mobile internet contracts increased by 140,000 to 10.66 million.
| in million | Mar. 31, 2021 | Dec. 31, 2020 | Change |
|---|---|---|---|
| Consumer Access, total contracts | 14.97 | 14.83 | + 0.14 |
| thereof Mobile Internet | 10.66 | 10.52 | + 0.14 |
| thereof broadband connections | 4.31 | 4.31 | 0.00 |
Sales of the Consumer Access segment rose by 3.4% in the first quarter of 2021, from € 933.7 million in the previous year to € 965.9 million.
High-margin service revenues – which represent the core business of the segment – improved by 1.9% from € 747.8 million to € 762.2 million. Low-margin hardware sales rose by 9.6%, from € 185.9 million to € 203.7 million.
In the first quarter of 2021, segment earnings were dominated by an (out-of-period) positive earnings effect of € 34.4 million from the fiscal year 2020. On February 15, 2021, 1&1 Drillisch accepted Telefónica Germany's offer – improved following review by the EU Commission – for national roaming and thus also retroactively as of July 1, 2020 for the related MBA MVNO advance services. The advance service prices offered include annually decreasing data prices again, similar to the pricing mechanisms of the first five years of the MBA MVNO agreement. The offer accepted by 1&1 Drillisch is currently still being transposed into a national roaming agreement. Due in part to the aforementioned out-of-period earnings effect from the second half of 2020, EBITDA improved from € 164.8 million in the previous year to € 202.8 million and EBIT from € 128.2 million to € 163.3 million.
Adjusted for this (out-of-period) positive effect on earnings from the new advance service prices, segment earnings developed as follows: operating segment EBITDA improved by 2.2%, from € 164.8 million in the same period last year to € 168.4 million. Operating EBITDA includes initial costs for the construction of the Company's own 5G network of € -7.2 million (prior year: € -2.8 million).
Due to increased 5G costs and higher depreciation, operating segment EBIT rose only slightly by 0.5% from € 128.2 million to € 128.9 million.
There was a slight decline in the operating EBITDA margin and operating EBIT margin from 17.7% to 17.4% and from 13.7% to 13.3%, respectively.
(1) Mainly hardware sales
(2) Excluding a (non-period) positive effect on earnings (excessive MBA MVNO billings) from Q3 and Q4 2020 (EBITDA and EBIT effect: € +34.4 million)
| in € million | Q2 2020 | Q3 2020 | Q4 2020 | Q1 2021 | Q1 2020 | Change |
|---|---|---|---|---|---|---|
| Sales | 933.5 | 925.6 | 966.2 | 965.9 | 933.7 | + 3.4% |
| thereof service sales | 749.1 | 760.8 | 762.3 | 762.2 | 747.8 | + 1.9% |
| thereof other sales(1) | 184.4 | 164.8 | 203.9 | 203.7 | 185.9 | + 9.6% |
| EBITDA | 166.5 | 127.3(2) | 142.6(3) | 168.4(4) | 164.8 | + 2.2% |
| EBIT | 129.7 | 87.8(2) | 103.0(3) | 128.9(4) | 128.2 | + 0.5% |
(1) Mainly hardware sales
(2) Including excessive MBA MVNO billing (EBITDA and EBIT effect: € -14.4 million)
(3) Including excessive MBA MVNO billing (EBITDA and EBIT effect: € -20.0 million); excluding non-cash write-off of VDSL contingents that are still available (EBITDA and EBIT effect: € -129.9 million)
(4) Excluding a (non-period) positive effect on earnings (excessive MBA MVNO billings) from Q3 and Q4 2020 (EBITDA and EBIT effect: € +34.4 million)
| in € million | Q1 2017 (IAS 18) |
Q1 2018 (IFRS 15) |
Q1 2019 (IFRS 16) |
Q1 2020 | Q1 2021 |
|---|---|---|---|---|---|
| Sales | 619.4 | 893.6 | 895.4 | 933.7 | 965.9 |
| thereof service sales | 596.3 | 700.9 | 720.8 | 747.8 | 762.2 |
| thereof other sales(1) | 23.1 | 192.6 | 174.6 | 185.9 | 203.7 |
| EBITDA | 109.0 | 165.3 | 168.5 | 164.8 | 168.4(2) |
| EBITDA margin | 17.6% | 18.5% | 18.8% | 17.7% | 17.4% |
| EBIT | 106.3 | 124.8 | 130.6 | 128.2 | 128.9(2) |
| EBIT margin | 17.2% | 14.0% | 14.6% | 13.7% | 13.3% |
(1) Mainly hardware sales
(2) Excluding a (non-period) positive effect on earnings (excessive MBA MVNO billings) from Q3 and Q4 2020 (EBITDA and EBIT effect: € +34.4 million)
In the first quarter of 2021, sales in the Business Access segment rose by 8.1% from € 118.7 million in the previous year to € 128.3 million.
Despite a one-off burden in connection with the new advance service agreement with Deutsche Telekom, segment EBITDA also improved by 8.5% from € 35.2 million in the previous year to € 38.2 million. As a result, the EBITDA margin rose slightly from 29.7% to 29.8%.
Despite high writedowns for network infrastructure, segment EBIT improved from € -14.5 million in the previous year to € -6.9 million
| in € million | Q2 2020 | Q3 2020 | Q4 2020 | Q1 2021 | Q1 2020 | Change |
|---|---|---|---|---|---|---|
| Sales | 122.8 | 125.1 | 126.7 | 128.3 | 118.7 | + 8.1% |
| EBITDA | 39.7 | 39.4 | 35.5 | 38.2 | 35.2 | + 8.5% |
| EBIT | -10.7 | -9.4 | -13.5 | -6.9 | -14.5 |
| in € million | Q1 2017 (IAS 18) |
Q1 2018 (IFRS 15) |
Q1 2019 (IFRS 16) |
Q1 2020 | Q1 2021 |
|---|---|---|---|---|---|
| Sales | 114.9 | 110.1 | 119.3 | 118.7 | 128.3 |
| EBITDA | 24.7 | 12.1 | 35.7 | 35.2 | 38.2 |
| EBITDA margin | 21.5% | 11.0% | 29.9% | 29.7% | 29.8% |
| EBIT | -6.4 | -19.2 | -13.5 | -14.5 | -6.9 |
| EBIT margin | - | - | - | - | - |
Q1 2021 Q1 2020
8
The number of pay accounts (fee-based contracts) rose by 30,000 to 2.40 million in the first quarter of 2021. Ad-financed free accounts increased by 150,000 to 39.55 million. As a result, the total number of Consumer Applications accounts rose by 180,000 to 41.95 million.
| in million | Mar. 31, 2021 | Dec. 31, 2020 | Change |
|---|---|---|---|
| Consumer Applications, total accounts | 41.95 | 41.77 | + 0.18 |
| thereof with Premium Mail subscription | 1.66 | 1.63 | + 0.03 |
| thereof with Value-Added subscription | 0.74 | 0.74 | 0.00 |
| thereof free accounts | 39.55 | 39.40 | + 0.15 |
In the first quarter of 2021, activities in the Consumer Applications segment continued to focus on the establishment of data-driven business models. In addition to the further increase in customer accounts, this transformation is also reflected in the growing success of the segment's key financial figures.
Sales of the Consumer Applications segment, for example, improved in total by 7.4% from € 60.8 million in the same period last year to € 65.3 million.
There was also growth in the segment's key earnings figures in the first quarter of 2021: segment EBITDA rose by 11.2% from € 23.3 million to € 25.9 million and segment EBIT by 11.4% from € 18.4 million to € 20.5 million. As a result, the EBITDA margin also improved from 38.3% to 39.7% and the EBIT margin from 30.3% to 31.4%.
| in € million | Q2 2020 | Q3 2020 | Q4 2020 | Q1 2021 | Q1 2020 | Change |
|---|---|---|---|---|---|---|
| Sales | 58.9 | 61.2 | 70.9 | 65.3 | 60.8 | + 7.4% |
| EBITDA | 23.7 | 22.5 | 31.2 | 25.9 | 23.3 | + 11.2% |
| EBIT | 18.6 | 17.4 | 24.6 | 20.5 | 18.4 | + 11.4% |
| in € million | Q1 2017 (IAS 18) |
Q1 2018 (IFRS 15) |
Q1 2019 (IFRS 16) |
Q1 2020 | Q1 2021 |
|---|---|---|---|---|---|
| Sales(1) | 66.1 | 72.0 | 58.5 (60.4) | 60.8 | 65.3 |
| EBITDA | 28.9 | 27.5 | 21.4 | 23.3 | 25.9 |
| EBITDA margin | 43.7% | 38.2% | 36.6% | 38.3% | 39.7% |
| EBIT | 25.9 | 24.0 | 18.3 | 18.4 | 20.5 |
| EBIT margin | 39.2% | 33.3% | 31.3% | 30.3% | 31.4% |
(1) Sales in 2019 after changing from gross to net presentation of third-party marketing revenues in 2020;
the gross amount disclosed in 2019 is shown in brackets; 2017 - 2018 reported unchanged on a gross statement
The number of fee-based Business Applications contracts was increased by a further 110,000 contracts in the first quarter of 2021. This growth resulted from 70,000 contracts in Germany and 40,000 contracts abroad. As a result, the total number of contracts rose to 8.56 million. This figure includes around 7,500 contracts from the takeover of we22 (consolidated since February 1, 2021).
| in million | Mar. 31, 2021 | Dec. 31, 2020 | Change |
|---|---|---|---|
| Business Applications, total contracts | 8.56 | 8.45 | + 0.11 |
| thereof in Germany | 4.13 | 4.06 | + 0.07 |
| thereof abroad | 4.43 | 4.39 | + 0.04 |
Sales of the Business Applications segment rose by 8.1% from € 237.0 million in the previous year to € 256.2 million in the first quarter of 2021. The domain parking business of the Sedo brand also contributed 2.8 percentage points to this sales growth.
Segment EBITDA improved by 3.0% from € 76.9 million to € 79.2 million. This figure includes the announced investments of IONOS – especially for a product and sales drive in its cloud business and for further international expansion – amounting to € -10.1 million.
Segment EBIT was also burdened by these costs and rose by 4.8% from € 51.6 million to € 54.1 million.
The EBITDA margin and EBIT margin fell from 32.4% to 30.9% and from 21.8% to 21.1%, respectively.
| Sales | 256.2 237.0 |
+ 8.1 % | Q1 2021 Q1 2020 |
|
|---|---|---|---|---|
| EBITDA | 79.2 76.9 |
+ 3.0 % | ||
| EBIT | 54.1 51.6 |
+ 4.8 % |
| in € million | Q2 2020 | Q3 2020 | Q4 2020 | Q1 2021 | Q1 2020 | Change |
|---|---|---|---|---|---|---|
| Sales | 234.6 | 235.7 | 241.3 | 256.2 | 237.0 | + 8.1% |
| EBITDA | 90.9 | 86.8 | 73.7 | 79.2 | 76.9 | + 3.0% |
| EBIT | 65.8 | 61.6 | 50.2(1) | 54.1 | 51.6 | + 4.8% |
(1) Excluding trademark writeups Strato (EBIT effect: € +19.4 million)
| Multi-period overview: Development of key sales and earnings figures | ||||||||
|---|---|---|---|---|---|---|---|---|
| ---------------------------------------------------------------------- | -- | -- | -- | -- | -- | -- | -- | -- |
| in € million | Q1 2017 (IAS 18) |
Q1 2018 (IFRS 15) |
Q1 2019 (IFRS 16) |
Q1 2020 | Q1 2021 |
|---|---|---|---|---|---|
| Sales | 164.4 | 209.4 | 220.2 | 237.0 | 256.2 |
| EBITDA | 52.9 | 74.7 | 73.7 | 76.9 | 79.2 |
| EBITDA margin | 32.2% | 35.7% | 33.5% | 32.4% | 30.9% |
| EBIT | 42.6 | 54.6 | 45.7 | 51.6 | 54.1 |
| EBIT margin | 25.9% | 26.1% | 20.8% | 21.8% | 21.1% |
In the first quarter of 2021, the total number of fee-based customer contracts in the United Internet Group was raised by 280,000 to 25.93 million contracts. At the same time, ad-financed free accounts rose by 150,000 to 39.55 million.
Consolidated sales grew by 4.7% in the first quarter of 2021, from € 1,329.4 million in the previous year to € 1,392.2 million. Sales outside Germany improved by 5.7% from € 116.1 million to € 122.7 million (despite currency losses of € 5.0 million).
At € 884.9 million, the cost of sales was unchanged from the previous year. As a result, the cost of sales ratio fell from 66.6% (of sales) in the previous year to 63.6% (of sales) in the first quarter of 2021. There was a corresponding improvement in the gross margin from 33.4% to 36.4%. Gross profit therefore rose faster than sales (+4.7%) by 14.1% from € 444.5 million to € 507.3 million. These improvements were due in particular to an (out-of-period) positive effect of € +34.4 million (for further details, please refer to the comments on earnings below). There was an opposing effect from increased hardware sales.
Sales and marketing expenses also increased more slowly than sales, from € 193.5 million (14.6% of sales) in the previous year to € 200.8 million (14.4% of sales). By contrast, there was a disproportionately stronger increase in administrative expenses from € 50.9 million (3.8% of sales) to € 60.8 million (4.4% of sales), due to increased legal and consultancy costs (for preparations and negotiations in connection with the rollout of the Company's own 5G network).
| in € million | Q1 2017 (IAS 18) |
Q1 2018 (IFRS 15) |
Q1 2019 (IFRS 16) |
Q1 2020 | Q1 2021 |
|---|---|---|---|---|---|
| Cost of sales | 611.2 | 844.2 | 841.7 | 884.9 | 884.9(1) |
| Cost of sales ratio | 64.2% | 66.8% | 65.9% | 66.6% | 63.6% |
| Gross margin | 35.8% | 33.2% | 34.1% | 33.4% | 36.4% |
| Selling expenses | 135.7 | 170.6 | 194.7 | 193.5 | 200.8 |
| Selling expenses ratio | 14.2% | 13.5% | 15.3% | 14.6% | 14.4% |
| Administrative expenses | 42.8 | 55.1 | 51.3 | 50.9 | 60.8 |
| Administrative expenses ratio | 4.5% | 4.4% | 4.0% | 3.8% | 4.4% |
(1) Including a (non-period) positive effect on earnings (excessive MBA MVNO billings) from Q3 and Q4 2020 (effect: € +34.4 million)
The Group's earnings figures for the first quarter of 2021 were affected by an (out-of-period) positive effect on earnings of € 34.4 million from the fiscal year 2020. On February 15, 2021, 1&1 Drillisch accepted Telefónica Germany's offer – improved following review by the EU Commission – for national roaming and thus also retroactively as of July 1, 2020 for the related MBA MVNO advance services. The advance service prices offered include annually decreasing data prices again, similar to the pricing mechanisms of the first five years of the MBA MVNO agreement. The offer accepted by 1&1 Drillisch is currently still being transposed into a national roaming agreement. Due in part to the aforementioned out-of-period earnings effect from the second half of 2020, EBITDA improved from € 300.8 million in the same period last year to € 346.5 million and EBIT from € 184.2 million to € 230.6 million.
Adjusted for this (out-of-period) positive effect on earnings from the new advance service prices, the Group's earnings figures developed as follows: operating EBITDA for the Group improved by 3.8% in the first quarter of 2021, from € 300.8 million in the previous year to € 312.1 million, while operating EBIT for the Group rose by 6.5% from € 184.2 million to € 196.2 million. These figures include initial costs for the construction of the Company's own 5G network of € -7.2 million (prior year: € -2.8 million), as well as the announced investments of IONOS – above all for a product and sales drive in its cloud business and for further international expansion – amounting to € -10.1 million.
The operating EBITDA margin fell slightly from 22.6% in the same period last year to 22.4%, while the operating EBIT margin improved slightly from 13.9% to 14.1%.
Earnings before taxes (EBT) increased from € 157.8 million to € 230.3 million. For the current quarter, this figure includes the aforementioned (out-of-period) positive effect on earnings (EBT effect: € +34.4 million), while the prior-year quarter includes non-cash impairment charges on shares held in Tele Columbus due to closing-date effects (EBT effect: € -15.1 million). Adjusted for these opposing effects, operating EBT of € 195.9 million was 13.3% up on the previous year (€ 172.9 million).
Earnings per share (EPS) rose from € 0.39 in the previous year to € 0.68. EPS also reflects the above mentioned (out-of-period) positive earnings effect in the current quarter (EPS effect: € +0.10), while the prior-year quarter includes an impairment charge for the Tele Columbus shares (EPS effect: € -0.08 million). Adjusted for these opposing effects, operating EPS rose by 23.4% from € 0.47 to € 0.58 and operating EPS before PPA by 15.3% from € 0.59 to € 0.68. This strong year-on-year increase is partly due to the reclassification of Tele Columbus shares pursuant to IFRS 5 as "assets held for sale" in the annual financial statements 2020.
(1) Excluding a (non-period) positive effect on earnings (excessive MBA MVNO billings) from Q3 and Q4 2020 (EBITDA and EBIT effect: € +34.4 million)
| in € million | Q2 2020 | Q3 2020 | Q4 2020 | Q1 2021 | Q1 2020 | Change |
|---|---|---|---|---|---|---|
| Sales | 1,328.5 | 1,326.8 | 1,382.5 | 1,392.2 | 1,329.4 | + 4.7% |
| EBITDA | 319.7 | 275.9(1) | 282.4(2) | 312.1(3) | 300.8 | + 3.8% |
| EBIT | 201.2 | 156.3(1) | 163.1(2) | 196.2(3) | 184.2 | + 6.5% |
(1) Including excessive MBA MVNO billing (EBITDA and EBIT effect: € -14.4 million)
(2) Including excessive MBA MVNO billing (EBITDA and EBIT effect: € -20.0 million); excluding non-cash write-off of VDSL contingents that are still available (EBITDA and EBIT effect: € -129.9 million)
(3) Excluding a (non-period) positive effect on earnings (excessive MBA MVNO billings) from Q3 and Q4 2020 (EBITDA and EBIT effect: € +34.4 million)
Q1 2021 Q1 2020
| Multi-period overview: Development of key sales and earnings figures | ||||
|---|---|---|---|---|
| -- | -- | -- | -- | ---------------------------------------------------------------------- |
| Q1 2017 | Q1 2018 | Q1 2019 | Q1 2020 | Q1 2021 | |
|---|---|---|---|---|---|
| in € million | (IAS 18) | (IFRS 15) | (IFRS 16) | ||
| Sales | 952.7 | 1,270.7 | 1,276.5 | 1,329.4 | 1,392.2 |
| EBITDA | 213.0 | 278.3 | 299.7 | 300.8 | 312.1(1) |
| EBITDA margin | 22.4% | 21.9% | 23.5% | 22.6% | 22.4% |
| EBIT | 165.9 | 182.9 | 181.1 | 184.2 | 196.2(1) |
| EBIT margin | 17.4% | 14.4% | 14.2% | 13.9% | 14.1% |
(1) Excluding a (non-period) positive effect on earnings (excessive MBA MVNO billings) from Q3 and Q4 2020 (EBITDA and EBIT effect: € +34.4 million)
Thanks to the positive trend in operating earnings, operative cash flow rose from € 231.9 million in the previous year to € 241.9 million in the first quarter of 2021.
At € 135.7 million, cash flow from operating activities was below the prior-year figure (€ 164.9 million). This was mainly due to increased receivables from advance service providers, as well as a rise in contract assets due to increased hardware sales.
Cash flow from investing activities resulted in a net outflow of € 87.4 million in the reporting period (prior year: € 46.2 million). This resulted mainly from disbursements of € 63.7 million (prior year: € 49.5 million) for capital expenditures, as well as payments of € 24.1 million for the purchase of shares in affiliates (especially for the acquisition of we22 AG).
United Internet's free cash flow is defined as cash flow from operating activities, less capital expenditures, plus payments from disposals of intangible assets and property, plant, and equipment. Due to the decrease in cash flow from operating activities and the increase in capital expenditures, free cash flow decreased from € 117.1 million to € 72.7 million. Since the initial application of the accounting standard IFRS 16 in fiscal year 2019, the redemption share of lease liabilities is disclosed in cash flow from financing activities. After deducting the cash flow item "Redemption of finance lease liabilities and rights of use", free cash flow fell from € 96.3 million to € 43.9 million.
Cash flow from financing activities in the first quarter of 2021 was dominated by the net repayment of loans totaling € 80.3 million (prior year: € 152.9 million), as well as the redemption of lease liabilities of € 28.8 million (prior year: € 20.8 million).
As of March 31, 2021, cash and cash equivalents amounted to € 72.4 million – compared to € 62.2 million on the same date last year.
Cash and cash equivalents on March 31 72.4 62.2 + 10.2 (1) Free cash flow is defined as cash flow from operating activities, less capital expenditures, plus payments from disposals of intangible assets and property, plant and equipment
Cash flow from financing activities - 109.5 - 173.7 + 64.2
(2) 2021 including the repayment portion of lease liabilities (€28.8 million), which have been reported under cash flow from financing activities since the fiscal year 2019 (IFRS 16)
(3) 2020 incl. the repayment portion of lease liabilities (€20.8 million), which have been reported under cash flow from financing activities since the fiscal year 2019 (IFRS 16)
| Q1 2017 | Q1 2018 | Q1 2019 | Q1 2020 | Q1 2021 | |
|---|---|---|---|---|---|
| in € million | (IAS 18) | (IFRS 15) | (IFRS 16) | ||
| Operative cash flow | 157.5 | 205.8 | 219.1 | 231.9 | 241.9 |
| Cash flow from operating activities | 113.4(2) | 51.7 | 144.1 | 164.9 | 135.7 |
| Cash flow from investing activities | - 74.9 | - 60.3 | - 43.1 | - 46.2 | - 87.4 |
| Free cash flow(1) | 73.2(2) | 0.5 | 78.6(3) | 96.3(3) | 43.9(3) |
| Cash flow from financing activities | 80.2 | - 86.1 | - 100.4 | - 173.7 | - 109.5 |
| Cash and cash equivalents on March 31 | 295.9 | 139.2 | 58.8 | 62.2 | 72.4 |
(1) Free cash flow is defined as cash flow from operating activities, less capital expenditures, plus payments from disposals of intangible assets and property, plant and equipment
(2) 2017 without consideration of a capital gains tax refund originally planned for the fourth quarter of 2016 (€70.3 million)
(3) 2019, 2020 and 2021 incl. the repayment portion of lease liabilities, which have been reported under cash flow from financing activities since the fiscal year 2019 (IFRS 16)
The balance sheet total increased from € 9.231 billion as of December 31, 2020 to € 9.336 billion on March 31, 2021.
| in € million | Mar. 31, 2021 | Dec. 31, 2020 | Change |
|---|---|---|---|
| Cash and cash equivalents | 72.4 | 131.3 | - 58.8 |
| Trade accounts receivable | 358.5 | 344.8 | + 13.6 |
| Contract assets | 606.1 | 577.6 | + 28.5 |
| Inventories | 92.5 | 85.4 | + 7.1 |
| Prepaid expenses | 234.9 | 214.4 | + 20.5 |
| Other financial assets | 159.7 | 82.3 | + 77.4 |
| Income tax claims | 63.4 | 64.8 | - 1.4 |
| Other non-financial assets | 27.4 | 12.4 | + 15.1 |
| Total current assets | 1,614.9 | 1,512.9 | + 102.0 |
Current assets rose from € 1,512.9 million as of December 31, 2020 to € 1,614.9 million on March 31, 2021. However, cash and cash equivalents disclosed under current assets decreased from € 131.3 million to € 72.4 million due to closing-date effects and the purchase price payment for the acquisition of we22 AG. By contrast, trade accounts receivable rose slightly from € 344.8 million to € 358.5 million due to closing-date effects and the expansion of business. As a result of customer growth and increased hardware sales, the item contract assets rose from € 577.6 million to € 606.1 million and includes current claims against customers due to accelerated revenue recognition from the application of IFRS 15. Current prepaid expenses increased from € 214.4 million to € 234.9 million due to closing-date effects and mainly comprise the short-term portion of expenses relating to contract acquisition and contract fulfillment according to IFRS 15. Due to increased receivables from advance service providers, current other financial assets rose from € 82.3 million to € 159.7 million. Other non- financial assets increased from € 12.4 million to € 27.4 million. Inventories and income tax claims were virtually unchanged.
| in € million | Mar. 31, 2021 | Dec. 31, 2020 | Change |
|---|---|---|---|
| Shares in associated companies | 90.1 | 89.6 | + 0.5 |
| Other financial assets | 11.2 | 9.9 | + 1.3 |
| Property, plant and equipment | 1,279.7 | 1,271.6 | + 8.2 |
| Intangible assets | 2,158.8 | 2,197.8 | - 39.0 |
| Goodwill | 3,637.6 | 3,609.4 | + 28.2 |
| Trade accounts receivable | 52.3 | 54.0 | - 1.7 |
| Contract assets | 202.3 | 196.5 | + 5.8 |
| Prepaid expenses | 141.9 | 144.8 | - 2.9 |
| Deferred tax assets | 23.2 | 20.4 | + 2.8 |
| Total non-current assets | 7,597.1 | 7,594.0 | + 3.1 |
| Assets held for sale | 124.0 | 124.0 | 0.0 |
Non-current assets rose slightly from € 7,594.0 million as of December 31, 2020 to € 7,597.1 million on March 31, 2021. Due in particular to amortization, intangible assets declined from € 2,197.8 million to € 2,158.8 million, while goodwill increased from € 3,609.4 million to € 3,637.6 million mainly as a result of the acquisition of we22 AG. Shares in associated companies, non-current other financial assets,
Development of current liabilities
| in € million | Mar. 31, 2021 | Dec. 31, 2020 | Change |
|---|---|---|---|
| Trade accounts payable | 500.8 | 532.8 | - 32.0 |
| Liabilities due to banks | 455.0 | 370.4 | + 84.6 |
| Income tax liabilities | 110.9 | 114.6 | - 3.7 |
| Contract liabilities | 162.0 | 152.1 | + 9.9 |
| Other accrued liabilities | 9.1 | 9.3 | - 0.2 |
| Other financial liabilities | 289.9 | 278.6 | + 11.2 |
| Other non-financial liabilities | 77.0 | 46.7 | + 30.3 |
| Total current liabilities | 1,604.7 | 1,504.6 | + 100.1 |
Current liabilities rose from € 1,504.6 million as of December 31, 2020 to € 1,604.7 million on March 31, 2021. Due to closing-date effects, current trade accounts payable decreased from € 532.8 million to € 500.8 million. There was an increase in current liabilities due to banks from € 370.4 million to € 455.0 million following reclassifications of non-current liabilities (in accordance with their maturity) as well as the redemption of bank liabilities. Also mainly due to reclassifications from non-current liabilities, current other financial liabilities rose from € 278.6 million to € 289.9 million. Current other non-financial liabilities increased from € 46.7 million to € 77.0 million and mainly include liabilities due to tax authorities. The item current contract liabilities, which mainly includes payments received from customer contracts for which the performance has not yet been completely rendered, as well as the items income tax liabilities and current other accrued liabilities were largely unchanged.
| Mar. 31, 2021 | Dec. 31, 2020 | Change |
|---|---|---|
| 930.8 | 1,095.7 | - 164.8 |
| 331.0 | 331.6 | - 0.6 |
| 6.0 | 6.0 | 0.0 |
| 33.0 | 33.6 | - 0.7 |
| 71.9 | 69.3 | + 2.6 |
| 1,272.6 | 1,278.7 | - 6.2 |
| 2,645.3 | 2,815.0 | - 169.7 |
Non-current liabilities declined from € 2,815.0 million as of December 31, 2020 to € 2,645.3 million on March 31, 2021. This was mainly due to long-term liabilities due to banks, which were reduced significantly from € 1,095.7 million to € 930.8 million following reclassifications to current liabilities. By contrast, the items deferred tax liabilities, non-current trade accounts payable, non-current contract liabilities (which mainly include payments received from customer contracts for which the performance has not yet been completely rendered), as well as non-current other accrued liabilities and other financial liabilities were all largely unchanged.
| Development of equity | |||
|---|---|---|---|
| in € million | Mar. 31, 2021 | Dec. 31, 2020 | Change |
| Capital stock | 194.0 | 194.0 | 0.0 |
| Capital reserves | 2,326.5 | 2,322.8 | + 3.7 |
| Accumulated profit | 2,367.1 | 2,240.5 | + 126.6 |
| Treasury shares | - 212.7 | - 212.7 | 0.0 |
| Revaluation reserves | - 3.8 | - 4.4 | + 0.5 |
| Currency translation adjustment | - 16.1 | - 21.1 | + 5.0 |
| Equity attributable to shareholders of the parent company | 4,655.0 | 4,519.1 | + 135.9 |
| Non-controlling interests | 430.9 | 392.1 | + 38.8 |
| Total equity | 5,085.9 | 4,911.2 | + 174.7 |
As a result of the further increase in the Group's accumulated profit, consolidated equity capital rose from € 4,911.2 million as of December 31, 2020 to € 5,085.9 million on March 31, 2021. In the first quarter of 2021, the Group's accumulated profit rose from € 2,240.5 million to € 2,367.1 million and contains the past profits of the consolidated companies, insofar as they were not distributed, less payments for share-based compensation. The consolidated equity ratio rose from 53.2% to 54.5%.
Net bank liabilities (i.e., the balance of bank liabilities and cash and cash equivalents) were reduced from € 1,334.8 million as of December 31, 2020 to € 1,313.4 million on March 31, 2021.
| Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | Mar. 31, | |
|---|---|---|---|---|---|
| in € million | 2017 (IAS 18) |
2018 (IFRS 15) |
2019 (IFRS 16) |
2020 | 2021 |
| Total assets | 7,605.2 | 8,173.8 | 9,128.8 | 9,230.8 | 9,335.9 |
| Cash and cash equivalents | 238.5 | 58.1 | 117.6 | 131.3 | 72.4 |
| Shares in associated companies | 418.0 | 206.9(1) | 196.0 | 89.6 | 30.1 |
| Other financial assets | 333.7 | 348.1(2) | 90.4(2) | 9.9(2) | 11.2(2) |
| Property, plant and equipment | 747.4 | 818.0 | 1,160.6(3) | 1,271.6 | 1,279.7 |
| Intangible assets | 1,408.4 | 1,244.6 | 2,167.4(4) | 2,197.8 | 2,158.8 |
| Goodwill | 3,564.1 | 3,612.6(5) | 3,616.5 | 3,609.4 | 3,637.6 |
| Liabilities due to banks | 1,955.8 | 1,939.1 | 1,738.4 | 1,466.1 | 1,385.8 |
| Capital stock | 205.0 | 205.0 | 205.0 | 194.0(6) | 194.0 |
| Equity | 4,048.7 | 4,521.5(7) | 4,614.7 | 4,911.2 | 5,085.9 |
| Equity ratio | 0.5 | 55.3% | 50.6% | 53.2% | 54.5% |
(1) Decrease due to Tele Columbus impairment charges (2018)
(2) Increase due to subsequent valuation of shares in listed companies (2018); decrease due to sale of Rocket Internet shares (2019); decrease due to sale of Afilias shares (2020)
(3) Increase due to initial application of IFRS 16 (2019)
(4) Increase due to initial recognition of acquired 5G frequencies (2019)
(5) Increase due to World4You takeover (2018)
(6) Decrease due to withdrawal of treasury shares
(8) Transitional effects from initial application of IFRS 15 (2018)
United Internet got off to a good start in its fiscal year 2021. In the first quarter of 2021, the Company made further investments in new customer contracts and the expansion of existing customer relationships, and thus in sustainable growth. In total, the number of fee-based customer contracts grew by a further 280,000 contracts to 25.93 million contracts.
140,000 contracts were added in the Consumer Access segment. In the Consumer Applications segment, 150,000 ad-financed free accounts and 30,000 pay accounts were added. A further 110,000 contracts resulted from the Business Applications segment.
In view of this strong customer growth, a 4.7% increase in sales to around € 1.392 billion, and an improvement in operating EBITDA of 3.8% to around € 312 million, United Internet made good progress in the first quarter of 2021 – despite heavy investment in future topics.
This performance once again highlights the benefits of United Internet's business model based predominantly on electronic subscriptions – with fixed monthly payments and contractually fixed terms. This ensures stable and predictable revenues and cash flows, offers protection against cyclical influences, and provides the financial scope to grasp opportunities in new business fields and markets – organically or via investments and acquisitions.
With the sales and earnings figures achieved in the first quarter of 2021, as well as the investments made in sustainable corporate development, the Management Board believes that the Company is well placed for its further development.
There were no significant events subsequent to the reporting date of March 31, 2021 which had a material effect on the financial position and performance of the Company or the Group nor affected its accounting and reporting.
As an anchor investor in Tele Columbus AG, United Internet announced on December 21, 2020 that, together with Morgan Stanley Infrastructure Partners, it would provide support for the implementation of Tele Columbus's Fiber Champion strategy. In this connection, Kublai GmbH (a bidding company backed by Morgan Stanley) submitted a voluntary public takeover offer for the Tele Columbus shares in a first step. After the successful completion of the takeover bid, United Internet contributed its directly held shares in Tele Columbus to Kublai and resolved to raise its stake in Kublai to 40%, which in turn now holds almost 92% of the Tele Columbus shares.
The risk and opportunity policy of United Internet AG is based on the objective of maintaining and sustainably enhancing the company's value by utilizing opportunities while at the same time recognizing and managing risks from an early stage in their development. The risk and opportunity management system regulates the responsible handling of those uncertainties which are always involved with economic activity.
The assessment of the overall level of risk is based on a consolidated view of all significant risk fields and individual risks, also taking account of their interdependencies.
From the current perspective, the main challenges are the risk fields "Litigation", "Business development & innovations" and "Information security". All in all, the risk classifications of the risk fields of United Internet AG as at March 31, 2021 were all unchanged from December 31, 2020.
The continuous expansion of its risk management system enables United Internet to limit risks to a minimum, where economically sensible, by implementing specific measures.
Compared to the previous year, the overall risk has risen in total. The main reason is the global impact of the coronavirus pandemic (Sars-CoV-2). Should the virus continue to spread over a longer period, this may also have a negative impact on demand, as well as on the usage and payment behavior of consumers and business owners, the purchase of pre-services (e.g., smartphones, routers, servers or network technology), or the health and fitness of employees, and thus ultimately on the performance of the United Internet Group. A precise risk assessment with regard to the duration and further effects of the coronavirus crisis is not possible at present, as the assessments of health experts and political measures are frequently changing (due also to new mutations of the virus).
In the assessment of the overall risk situation, the opportunities which exist for United Internet were not taken into consideration. There were no risks which directly jeopardized the continued existence of the United Internet Group in the reporting period, nor as of the preparation date for this Management Report, neither from individual risk positions nor from the overall risk situation.
On completion of the first quarter of 2021, United Internet AG can confirm its full-year guidance for 2021 and continues to expect sales growth to approx. € 5.5 billion and an increase in EBITDA to approx. € 1.22 billion (without consideration of out-of-period earnings of € 34.4 million in connection with the planned conclusion of the national roaming agreement). This forecast includes high investments in future topics. For example, 1&1 Drillisch plans initial costs for the 5G network rollout of approx. € 30 million and IONOS additional investments of approx. € 40 million for a product and sales drive. Following the integration of STRATO, World4You, and ProfitBricks in the past few years and its successful rebranding, IONOS aims to focus on expanding its cloud business and driving further internationalization.
The Management Board of United Internet AG remains upbeat about its prospects for the future. Thanks to a business model based predominantly on electronic subscriptions, United Internet believes it is largely stable enough to withstand cyclical influences. With the investments made over the past few years in customer relationships, new business fields, and further internationalization, as well as via acquisitions and investments, the Company has laid a broad foundation for its future growth.
This Interim Statement contains forward-looking statements based on current expectations, assumptions, and projections of the Management Board of United Internet AG and currently available information. These forward-looking statements are subject to various risks and uncertainties and are based upon expectations, assumptions, and projections that may not prove to be accurate. United Internet AG does not guarantee that these forward-looking statements will prove to be accurate and does not accept any obligation, nor have the intention, to adjust or update the forward-looking statements contained in this interim report.
United Internet AG ("United Internet") is a service company operating in the telecommunication and information technology sector with registered offices at Elgendorfer Strasse 57, 56410 Montabaur, Germany. The Company is registered at the district court of Montabaur under HRB 5762.
As was the case with the Consolidated Financial Statements as of December 31, 2020, the Interim Statement of United Internet AG as of March 31, 2021 was prepared in compliance with the International Financial Reporting Standards (IFRS) as applicable in the European Union (EU).
The Interim Statement does not constitute interim reporting as defined by IAS 34. With the exception of the mandatory new standards, the accounting and valuation principles applied in this Interim Statement comply with the methods applied in the previous year and should be read in conjunction with the Consolidated Financial Statements as of December 31, 2020.
For better comparability, the reclassifications made as of December 31, 2020 were also made accordingly as of March 31, 2021. There are no effects on key earnings figures.
The following standards are mandatory in the EU for the first time for fiscal years beginning on or after January 1, 2021:
| Standard | Mandatory for fiscal years beginning on or after |
Endorsed by EU Commission |
|
|---|---|---|---|
| IFRS 4 | Extension of the Temporary Exemption from Applying IFRS 9 |
January 1, 2021 | Yes |
| IFRS 9, IAS 39, IFRS 7, IFRS 4, IFRS 16 |
Interest Rate Benchmark Reform Phase 2 |
January 1, 2021 | Yes |
| IFRS 16 | Covid-19-Related Rent Concessions beyond June 30, 2021 |
January 1, 2021 | Yes |
There were no significant effects on this Interim Statement from the initial application of the new accounting standards.
The preparation of this Interim Statement requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the end of the reporting period. However, the uncertainty associated with these assumptions and estimates could lead to results which require material adjustments to the carrying amount of the asset or liability affected in future periods.
In order to ensure the clear and transparent presentation of United Internet's business trend, the Company's annual and interim financial statements include key performance indicators (KPIs) – in addition to the disclosures required by International Financial Reporting Standards (IFRS) – such as EBITDA, the EBITDA margin, EBIT, the EBIT margin and free cash flow. Information on the use, definition and calculation of these KPIs is provided in the Company's Annual Report 2020 on page 57.
Insofar as required for clear and transparent presentation, the KPIs used by United Internet are adjusted for special items. Such special items usually refer solely to those effects capable of restricting the validity of the key financial performance indicators with regard to the Company's financial and earnings performance – due to their nature, frequency and/or magnitude. All special items are presented and explained for the purpose of reconciliation with the unadjusted financial figures in the relevant section of the financial statements.
This Interim Statement includes all material subsidiaries and associated companies.
we22 Aktiengesellschaft, domiciled in Cologne, Germany, and its subsidiaries were included for the first time in the consolidated group as of February 1, 2021.
The consolidated group remained otherwise largely unchanged from that stated in the Consolidated Financial Statements as at December 31, 2020.
This Interim Statement was not audited according to Sec. 317 HGB nor reviewed by an auditor.
| GROUP BALANCE SHEET | 28 |
|---|---|
| GROUP NET INCOME | 30 |
| GROUP CASHFLOW | 32 |
| GROUP CHANGES IN SHAREHOLDERS´ EQUITY | 34 |
| SEGMENT-REPORTING | 36 |
| FINANCIAL CALENDAR | 38 |
| IMPRINT | 39 |
As of March 31, 2021 in €k
| ASSETS | March 31, 2021 | December 31, 2020 |
|---|---|---|
| Current assets | ||
| Cash and cash equivalents | 72,444 | 131,270 |
| Trade accounts receivable | 358,470 | 344,838 |
| Contract assets | 606,066 | 577,601 |
| Inventories | 92,516 | 85,390 |
| Prepaid expenses | 234,904 | 214,382 |
| Other financial assets | 159,710 | 82,262 |
| Income tax claims | 63,382 | 64,822 |
| Other non-financial assets | 27,406 | 12,351 |
| 1,614,898 | 1,512,917 | |
| Non-current assets | ||
| Shares in associated companies | 90,100 | 89,567 |
| Other financial assets | 11,165 | 9,901 |
| Property, plant and equipment | 1,279,721 | 1,271,567 |
| Intangible assets | 2,158,830 | 2,197,818 |
| Goodwill | 3,637,632 | 3,609,437 |
| Trade accounts receivable | 52,270 | 53,959 |
| Contract assets | 202,292 | 196,508 |
| Prepaid expenses | 141,882 | 144,795 |
| Deferred tax assets | 23,189 | 20,412 |
| 7,597,083 | 7,593,965 | |
| Assets held for sale | 123,955 | 123,955 |
| Total assets | 9,335,936 | 9,230,836 |
| LIABILITIES | March 31, 2021 | December 31, 2020 |
|---|---|---|
| Current liabilities | ||
| Trade accounts payable | 500,832 | 532,778 |
| Liabilities due to banks | 454,993 | 370,435 |
| Income tax liabilities | 110,944 | 114,621 |
| Contract liabilities | 161,968 | 152,094 |
| Other accrued liabilities | 9,124 | 9,302 |
| Other financial liabilities | 289,853 | 278,636 |
| Other non-financial liabilities | 77,027 | 46,747 |
| 1,604,741 | 1,504,614 | |
| Non-current liabilities | ||
| Liabilities due to banks | 930,832 | 1,095,654 |
| Deferred tax liabilities | 330,996 | 331,639 |
| Trade accounts payable | 6,016 | 6,014 |
| Contract liabilities | 32,967 | 33,631 |
| Other accrued liabilities | 71,892 | 69,329 |
| Other financial liabilities | 1,272,592 | 1,278,744 |
| 2,645,295 | 2,815,012 | |
| Total liabilities | 4,250,036 | 4,319,626 |
| EQUITY | ||
| Capital stock | 194,000 | 194,000 |
| Capital reserves | 2,326,516 | 2,322,780 |
| Accumulated profit | 2,367,111 | 2,240,473 |
| Treasury shares | -212,731 | -212,731 |
| Revaluation reserves | -3,822 | -4,372 |
| Currency translation adjustment | -16,116 | -21,091 |
| Equity attributable to shareholders of the parent company | 4,654,957 | 4,519,060 |
| Non-controlling interests | 430,943 | 392,151 |
| Total equity | 5,085,899 | 4,911,210 |
| Total liabilities and equity | 9,335,936 | 9,230,836 |
From January to March 31, 2021 in €k
| 2021 | 2020 | |
|---|---|---|
| January - March | January - March | |
| Sales | 1,392,186 | 1,329,380 |
| Cost of sales | -884,858 | -884,852 |
| Gross profit | 507,328 | 444,528 |
| Selling expenses | -200,826 | -193,503 |
| General and administrative expenses | -60,838 | -50,864 |
| Sonstige betriebliche Aufwendungen / Erträge | 2,374 | 5,353 |
| Impairment of receivables and contract assets | -17,438 | -21,322 |
| Operating result | 230,599 | 184,192 |
| Finanzergebnis | -656 | -4,466 |
| Result from associated companies | 356 | -21,955 |
| Pre-tax result | 230,299 | 157,771 |
| Income taxes | -67,582 | -56,828 |
| Net income | 162,717 | 100,943 |
| thereof attributable to | ||
| non-controlling interests | 35,765 | 27,931 |
| Shareholders of United Internet AG | 126,952 | 73,012 |
| 2021 | 2020 | |
|---|---|---|
| January - March | January - March | |
| Result per share of shareholders of United Internet AG (in €) | ||
| basic | 0.68 | 0.39 |
| diluted | 0.67 | 0.39 |
| Weighted average of outstanding shares (in million units) | ||
| basic | 187.23 | 187.66 |
| diluted | 188.37 | 187.66 |
| Reconciliation to total comprehensive income | ||
| Net income | 162,717 | 100,943 |
| Items that may be reclassified subsequently to profit or loss | ||
| Currency translation adjustment - unrealized | 6,931 | -8,773 |
| Items that are not reclassified subsequently to profit or loss | ||
| Market value changes of financial assets measured | ||
| at fair value through other comprehensive income | 546 | -197 |
| Tax effect | -8 | |
| Share in other comprehensive income of associated companies | -102 | |
| Other comprehensive income | 7,468 | -9,072 |
| Total comprehensive income | 170,185 | 91,871 |
| thereof attributable to |
non-controlling interests 37,710 24,839 Shareholders of United Internet AG 132,476 67,032
From January to March 31, 2021 in €k
| 2021 | 2020 | |
|---|---|---|
| January - March | January - March | |
| Result from operating activities | ||
| Net income | 162,717 | 100,943 |
| Adjustments to reconcile net income to net cash provided by operating activities |
||
| Depreciation and amortization of intangible assets and property, plant and equipment |
||
| 80,759 | 73,296 | |
| Depreciation and amortization of assets resulting from company acquisitions | 35,136 | 43,317 |
| write-ups on intangible assets | 0 | 0 |
| Employee expenses from employee shareholdings | 5,175 | 2,583 |
| Result from associated companies | -356 | 21,955 |
| Income from the sale of associated companies | 0 | 0 |
| Other non-cash items from tax adjustments | -3,420 | -11,743 |
| Non-cash income relating to other periods | -34,400 | 0 |
| Other non-cash items | -3,840 | 1,578 |
| Operative cash flow | 241,922 | 231,929 |
| Change in assets and liabilities | ||
| Change in receivables and other assets | -64,698 | -25,676 |
| Change in inventories | -7,126 | 6,689 |
| Change in contract assets | -34,249 | -7,732 |
| Change in income tax claims | 1,440 | -8,711 |
| Change in deferred expenses | -17,608 | -24,061 |
| Change in trade accounts payable | -34,335 | -35,214 |
| Change in other accrued liabilities | 2,384 | -6,045 |
| Change in income tax liabilities | -3,678 | 10,697 |
| Change in other liabilities | 42,460 | 20,308 |
| Change in contract liabilities | 9,211 | 2,766 |
| Change in assets and liabilities, total | -106,199 | -66,979 |
| Cash flow from operating activities | 135,724 | 164,949 |
| 2021 | 2020 | |
|---|---|---|
| January - March | January - March | |
| Cash flow from investing activities | ||
| Capital expenditure for intangible assets and property, plant and equipment | -63,690 | -49,548 |
| Payments from disposals of intangible assets and property, plant and equipment | 674 | 1,669 |
| Payments for company acquisitions less cash received | -24,051 | -400 |
| Purchase of shares in associated companies | -328 | -167 |
| Payments received from the sale of associated companies | 0 | 0 |
| Payments received from the repayment of other financial assets | 0 | 2,296 |
| Cash flow from investment activities | -87,395 | -46,151 |
| Cash flow from financing activities | ||
| Taking out / repayment of loans | -80,264 | -152,876 |
| Redemption of lease liabilities | -28,845 | -20,799 |
| Dividend payments to non-controlling interests | -386 | 0 |
| Cash flow from financing activities | -109,495 | -173,676 |
| Net increase in cash and cash equivalents | -61,167 | -54,877 |
| Cash and cash equivalents at beginning of fiscal year | 131,270 | 117,573 |
| Currency translation adjustments of cash and cash equivalents | 2,339 | -456 |
| Cash and cash equivalents at end of fiscal year | 72,443 | 62,239 |
In 2021 and 2020 in €k
| Capital stock | Capital reserves |
Accumulated profit |
Treasury shares | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Share | €k | €k | €k | Share | €k | ||||
| Balance as of January 1, 2020 | 205,000,000 | 205,000 | 2,643,946 | 1,993,860 | 17,338,513 | -548,442 | |||
| Net income | 73,012 | ||||||||
| Other comprehensive income | |||||||||
| Total comprehensive income | 73,012 | ||||||||
| Redemption of treasury shares | -11,000,000 | -11,000 | -336,946 | -11,000,000 | 347,946 | ||||
| Employee stock ownership program | 4,828 | ||||||||
| Balance as of March 31, 2020 | 194,000,000 | 194,000 | 2,311,828 | 2,066,872 | 6,338,513 | -200,496 | |||
| Balance as of January 1, 2021 | 194,000,000 | 194,000 | 2,322,780 | 2,240,473 | 6,769,137 | -212,731 | |||
| Net income | 126,952 | ||||||||
| Other comprehensive income | |||||||||
| Total comprehensive income | 126,952 | ||||||||
| Employee stock ownership program | 3,923 | ||||||||
| Profit distributions | |||||||||
| Other transactions | -187 | -315 | |||||||
| Balance as of March 31, 2021 | 194,000,000 | 194,000 | 2,326,516 | 2,367,111 | 6,769,137 | -212,731 |
| Non-controlling | Equity attributable to shareholders | |||
|---|---|---|---|---|
| Total equity | interests | of United Internet AG | Currency translation difference | Revaluation reserves |
| €k | €k | €k | €k | €k |
| 4,614,730 | 304,753 | 4,309,977 | -9,558 | 25,173 |
| 100,943 | 27,931 | 73,012 | ||
| -9,073 | -3,093 | -5,980 | -5,878 | -102 |
| 91,870 | 24,839 | 67,032 | -5,878 | -102 |
| 0 | ||||
| 7,007 | 2,179 | 4,828 | ||
| 4,713,607 | 331,770 | 4,381,839 | -15,436 | 25,071 |
| 4,911,210 | 392,151 | 4,519,060 | -21,091 | -4,372 |
| 162,717 | 35,765 | 126,952 | ||
| 7,468 | 1,945 | 5,523 | 4,974 | 549 |
| 170,185 | 37,710 | 132,476 | 4,974 | 549 |
| 5,175 | 1,252 | 3,923 | ||
| -386 | -386 | 0 | ||
| -286 | 216 | -502 | ||
| 5,085,899 | 430,942 | 4,654,957 | -16,117 | -3,823 |
From January to March 31, 2021 in €m
| €m | Consumer access segment |
Business access segment |
Consumer applications segment |
Business applications segment |
Corporate | Reconciliation | United Internet Group |
|---|---|---|---|---|---|---|---|
| January - March 2021 | €m | €m | €m | €m | €m | €m | €m |
| Segment revenue | 965.9 | 128.3 | 65.3 | 256.2 | 0.5 | -24.0 | 1,392.2 |
| - thereof domestic | 965.9 | 128.3 | 64.7 | 132.1 | 0.5 | -22.0 | 1,269.5 |
| - thereof foreign | 0 | 0 | 0.6 | 124.1 | 0 | -2.0 | 122.7 |
| Segment revenue from transactions with other segments |
0.2 | 19.1 | 3.7 | 1.0 | 0 | 24.0 | |
| Segment revenue from contracts with customers |
965.7 | 109.2 | 61.6 | 255.2 | 0.5 | 1,392.2 | |
| - thereof domestic | 965.7 | 109.2 | 61.0 | 133.1 | 0.5 | 0 | 1,269.5 |
| - thereof foreign | 0 | 0 | 0.6 | 122.1 | 0 | 122.7 | |
| EBITDA | 202.8 | 38.2 | 25.9 | 79.2 | -0.9 | 1.3 | 346.5 |
| Financial result | -0.7 | ||||||
| Result from associated companies | 0.4 | ||||||
| EBT | 230.3 | ||||||
| Income taxes | -67.6 | ||||||
| Net income | 162.7 | ||||||
| Investments in intangible assets, property, plant and equipment (without goodwill) |
7.2 | 54.8 | 3.1 | 17.7 | 2.8 | -0.2 | 85.4 |
| Amortization/depreciation | 39.5 | 45.1 | 5.4 | 25.1 | 0.4 | 0.4 | 115.9 |
| - thereof intangible assets, and property, plant and equipment |
15.9 | 41.4 | 5.4 | 17.3 | 0.4 | 80.8 | |
| - thereof assets capitalized during company acquisitions |
23.6 | 3.7 | 0 | 7.8 | 0 | 35.1 | |
| Number of employees | 3,183 | 1,194 | 986 | 3,878 | 601 | 9,842 | |
| - thereof domestic | 3,183 | 1,194 | 982 | 2,108 | 601 | 8,068 | |
| - thereof foreign | 0 | 0 | 4 | 1,770 | 0 | 1,774 |
| Consumer access |
Business access |
Consumer applications |
Business applications |
United Internet |
|||
|---|---|---|---|---|---|---|---|
| €m | segment | segment | segment | segment | Corporate | Reconciliation | Group |
| January - March 2020 | €m | €m | €m | €m | €m | €m | €m |
| Segment revenue | 933.7 | 118.7 | 60.8 | 237.0 | 0.1 | -20.9 | 1,329.4 |
| - thereof domestic | 933.7 | 118.7 | 59.1 | 121.7 | 0.1 | -20.0 | 1,213.3 |
| - thereof foreign | 0 | 0 | 1.7 | 115.3 | 0 | -0.9 | 116.1 |
| Segment revenue from transactions with other segments |
0.4 | 16.4 | 3.1 | 1.0 | 0 | 20.9 | |
| Segment revenue from contracts with customers |
933.3 | 102.3 | 57.7 | 235.9 | 0.1 | 1,329.4 | |
| - thereof domestic | 933.3 | 102.3 | 56.0 | 121.6 | 0.1 | 1,213.3 | |
| - thereof foreign | 0 | 0 | 1.7 | 114.4 | 0 | 116.1 | |
| EBITDA | 164.8 | 35.2 | 23.3 | 76.9 | -1.3 | 2.0 | 300.8 |
| Financial result | -4.5 | ||||||
| Result from associated companies | -22.0 | ||||||
| EBT | 157.8 | ||||||
| Income taxes | -56.8 | ||||||
| Net income | 100.9 | ||||||
| Investments in intangible assets, property, plant and equipment (without goodwill) |
16.8 | 46.0 | 2.2 | 15.2 | 2.6 | - | 82.8 |
| Amortization/depreciation | 36.5 | 49.6 | 4.9 | 25.2 | 0.2 | 0.2 | 116.6 |
| - thereof intangible assets, and property, plant and equipment |
6.2 | 45.0 | 4.9 | 16.8 | 0.2 | 0.2 | 73.3 |
| - thereof assets capitalized during company acquisitions |
30.3 | 4.6 | 0 | 8.4 | 0 | - | 43.3 |
| Number of employees | 3,159 | 1,164 | 988 | 3,452 | 596 | - | 9,359 |
| - thereof domestic | 3,159 | 1,164 | 984 | 1,838 | 596 | - | 7,741 |
| - thereof foreign | 0 | 0 | 4 | 1,614 | 0 | - | 1,618 |
| March 25, 2021 | Annual financial statements for fiscal year 2020 Press and analyst conference |
|---|---|
| May 11, 2021 | Interim Statement for the first quarter 2021 |
| May 27, 2021 | (Virtual) Annual Shareholders´ Meeting |
| August 5, 2021 | 6-Month Report 2021 Press and analyst conference |
| November 9, 2021 | Interim Statement for 9 months 2021 |
United Internet AG Elgendorfer Straße 57 56410 Montabaur Deutschland www.united-internet.de
Investor Relations Phone: +49(0) 2602 96-1100 Fax: +49(0) 2602 96-1013 E-mail: [email protected]
Mai 2021 Registry court: Montabaur HRB 5762
Due to calculation processes, tables and references may produce rounding differences from the mathematically exact values (monetary units, percentage statements, etc.).
This Interim Statement is available in German and English. Both versions can also be downloaded from www.united-internet.de. In all cases of doubt, the German version shall prevail.
For reasons of better readability, the additional use of the female form is omitted in this report. United Internet would like to stress that the use of the masculine form is to be understood purely as the gender-neutral form.
Inhouse produced with Firesys
This Interim Statement contains certain forward-looking statements which reflect the current views of United Internet AG's management with regard to future events. These forward looking statements are based on our currently valid plans, estimates and expectations. The forward-looking statements made in this Interim Statement are only based on those facts valid at the time when the statements were made. Such statements are subject to certain risks and uncertainties, as well as other factors which United Internet often cannot influence but which might cause our actual results to be materially different from any future results expressed or implied by these statements. Such risks, uncertainties and other factors are described in detail in the Risk Report section of the Annual Reports of United Internet AG. United Internet does not intend to revise or update any forward-looking statements set out in this Interim Statement.
Elgendorfer Straße 57 56410 Montabaur Germany
www.united-internet.com
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