United Internet Reports Decline in Key Earnings Metrics

In a recent report, United Internet AG indicates a decline in key earnings metrics for fiscal 2024, with adjusted EPS dropping significantly. While sales experienced slight growth, the company's outlook remains cautious as hardware revenues continue to impact performance.

Date: 12-11-2024

AI Rating: 4

The report highlights several important financial metrics related to United Internet AG. Firstly, the adjusted earnings per share (EPS) has declined to 0.82 euros from the prior year’s 1.22 euros, indicating a significant drop. This often reflects on overall profitability and can negatively influence investor sentiment.

Additionally, the EBIT for the first nine months of fiscal 2024 showed a decline to 529.5 million euros from last year’s 596.3 million euros, which points to an overall decrease in operational earnings capacity. Similarly, EBITDA has decreased to 978.4 million euros compared to last year's 992.7 million euros, emphasizing that the company is facing challenges that are impacting profitability.

Despite the declines in earnings metrics, the company reported a revenue growth of 2 percent, reaching 4.66 billion euros, up from 4.57 billion euros the previous year. While this growth is positive, it is described as merely moderate, attributed mainly to declines in hardware revenues in the Consumer Access segment.

Looking forward, United Internet has maintained its guidance for fiscal 2024, expecting EBITDA to be around 1.38 billion euros, with slight adjustments in the sales guidance reducing expectations from 6.4 billion euros to around 6.35 billion euros, although still above last year’s 6.213 billion euros.

In summary, while there is some revenue growth, the declines in key earnings metrics and adjustments in future guidance may lead to cautious outlooks from investors.

Stocks: UDIRF