United Internet Aktie: Costs for Germany's fourth mobile network eat into profits - IONOS grows
United Internet's full-year figures show: The expansion of the mobile communications network is expensive.
The expansion of the mobile communications network in Germany is proving to be an expensive undertaking for United Internet. In the past year, the group invested heavily in the construction of its own mobile network and acquired additional spectrum. However, this led to a decline in profits.
According to preliminary figures, United Internet's net income fell by around 16 percent to 440 million euros in 2022. Sales increased slightly by 2 percent to 6.4 billion euros. The company is to publish its detailed annual report on March 15th.
IONOS grows strongly
Despite the decline in profits, United Internet CEO Ralph Dommermuth emphasized the positive development of the group's cloud and hosting business. The IONOS subsidiary grew strongly and was able to increase its sales by 10 percent to 1.7 billion euros.
IONOS benefits from the increasing demand for cloud services. Companies are increasingly storing their data and applications in the cloud, which offers advantages in terms of flexibility, scalability, and cost savings.
The mobile communications business, on the other hand, is still in the early stages of development. United Internet's mobile network is not yet nationwide and has significantly fewer customers than the established providers Deutsche Telekom, Vodafone, and Telefónica.
However, United Internet is confident that it can establish itself in the German mobile communications market in the long term. The company plans to continue investing in its network and to acquire additional customers.
Outlook
United Internet expects continued growth in the cloud and hosting business in 2023. The company also wants to further expand its mobile communications network and gain market share.
Analysts are cautiously optimistic about United Internet's prospects. They believe that the company can benefit from the growing demand for cloud services and establish itself as the fourth mobile network operator in Germany.
