United Internet Announces Dividend Hike adn Positive outlook for 2025
Table of Contents
A look at the company’s financial performance,strategic shifts,and stock market reaction.
Financial Performance and Future Projections
United Internet (WKN: 508903) has released its final financial results for the past year, alongside a promising forecast for the current fiscal year. The company anticipates growth in both sales and earnings.Specifically, United Internet projects a revenue increase to approximately €6.4 billion in 2025, excluding the Energy for sale division. This follows a reported €6.30 billion in 2024. Furthermore, the company expects its EBITDA to rise to around €1.35 billion in 2025.
In a move welcomed by investors, United Internet has declared its intention to distribute a regular dividend of €0.40 per share for the previous year. In addition,the company plans to issue a one-time subsequent dividend of €1.50 per share. This special dividend aims to compensate shareholders for reduced dividend payments made between 2018 and 2023. The proposal awaits approval at the general meeting scheduled for May 15th.
Strategic Shift in Frequency Acquisition
A key development influencing United internet’s financial strategy is the revised timeline for radio spectrum acquisition by its subsidiary, 1 & 1. Previously, it was anticipated that 1 & 1 would need to acquire additional radio spectrum soon. United Internet had prepared to provide financial support to 1 & 1 if needed. However, the Federal Network Agency’s recent decision has postponed frequency acquisition by several years. This delay allows 1 & 1 to possibly finance future frequency acquisitions independently, alongside ongoing network expansion investments.
Stock market Performance
The proclamation initially triggered a dip in United Internet’s share price, briefly falling below the 200-day moving average. However, the stock rebounded, recovering above the 200-day line and closing with a gain of 2.6 percent at €19.25 on the Tradegate trading platform. While the stock has shown resilience, analysts suggest that surpassing the October 2024 high of €20.20 would signal a more significant enhancement in the stock’s outlook.
Industry Viewpoint
While United Internet demonstrates potential, some analysts currently favor Deutsche Telekom within the telecommunications sector. Deutsche Telekom, a major player in the European telecommunications market, has been actively expanding its 5G network and cloud services, positioning itself for future growth. For example, Deutsche Telekom reported a 2.3% increase in revenue in 2024, driven by strong performance in its mobile and broadband segments.
