United Internet / 1&1 AG: Model Update

Research evidence excerpt

United Internet / 1&1 AG: Model Update

Equity Research

21 May 2026

United Internet / 1&1 AG

Model Update

We update our estimates for United Internet and 1&1 post

1Q26 results. Our investment cases remain unchanged.

European Telecom Services

NEUTRAL

1&1 (EW, PT €20.50): 1&1 delivered a broadly stable Q1, with intense but gradually stabilising Unchanged

competition, prompting modest price increases in April and a continued focus on value over

volume. The subscriber base stabilised at ~16.3m, with broadband trends improving structurally

Ganesha Nagesha

and management expects it to turn positive. The company reiterated FY26 guidance (flat service +91 (0)22 6175 1712

revenue, ~€800m EBITDA) with CapEx back-end loaded. Network rollout remains on track, with ganesha.nagesha@barclays.com

~300 sites added per quarter and coverage reaching ~30% (target ~35% by year-end). Key Barclays, UK

headwinds include higher roaming costs, though this is EBIT-neutral and expected to ease as

Mathieu Robilliard

more traffic shifts to its own network. Post 1Q26 results we refresh our estimates. Our FY26 +44 (0)20 3134 3288

revenue and EBITDA estimates change+1.2%/-0.2% respectively. We also cut our net income mathieu.robilliard@barclays.com

estimates as we account for higher depreciation and interest expense on Versatel acquisition. BBI, Paris

Our DCF based price target is unchanged at €20.50 and we remain EW. Maurice Patrick

+44 (0)20 3134 3622

United Internet (EW, PT €27): During the conference call UI management said it remains

maurice.patrick@barclays.com

committed to its 64% IONOS stake, citing strong growth and AI-driven potential, while at the Barclays, UK

United Internet level it aims to reduce leverage to ~2.0x and remains open to share buybacks.