United Internet (AO) | Hold | Q1 review: neutral take - solid IONOS' KPIs vs. weakish 1&1 earnings

Research evidence excerpt

United Internet (AO) | Hold | Q1 review: neutral take - solid IONOS' KPIs vs. weakish 1&1 earnings

News comment

Release date: 12 May 2026

Florian Treisch

Equity Research Analyst

Hold +49 697 569 6132United Internet ftreisch@keplercheuvreux.com

Germany | Telecom services Beta Profile: MCap: EUR5.0bn

Target Price: EUR27.00 Bloomberg: UTDI GR Reuters: UTDI.DE

Current Price: EUR26.24 Free float 18%

Up/downside: 2.9% Avg. daily volume (EURm) 10.3

YTD abs performance -5.2% Market data: 11 May 2026

52-week high/low (EUR) 29.90/20.24

Q1 review: neutral take - solid IONOS' KPIs vs. weakish 1&1 earnings

Key points:

The Q1 top-line performance of United Internet was in line with expectations, benefiting from its diversification and visibility.

However, EBITDA was behind expectations, burdened by a weaker 1&1 profitability and some cost phasing at IONOS.

Overall, we expect a rather neutral reaction to the results, with solid operating KPIs at IONOS compensating partly for the weaker

earnings at 1&1 / Access segment.

The guidance was reiterated (as expected), with the market likely focusing on the earnings trajectory over the course of 2026.

Management will host a conference call at noon today ( after IONOS at 9:00am CET and 1&1 at 10:30am CET).

We reiterate our Hold rating, reflecting our neutral stance on its two core assets, 1&1 and IONOS (both rated Hold). On a positive

note, the group is on track to make 2026 the year to return to a solid FCF generation.

As before, we believe United Internet might be the best way to play the mid-term consolidation of the German mobile market,

with CEO Ralph Dommermuth holding all the cards (along with United Internet’s c. 86% stake in 1&1).

Q1 review: uninspiring 1&1 results impact EBITDA on group level - IONOS was likely the star in Q1