United Internet:Quarterly Results/2025 Q2: Difference between revisions

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 [https://fiscal.ai/company/XTRA-UTDI/investor-relations/Q2-2025/ Q2 2025 United Internet Earnings Call Transcript] | [https://edge.media-server.com/mmc/p/rf8a9eq4/lan/en/ Q2 2025 United Internet Webcast Call]
+==== Business access (1&1 Versatel) ====
+* 1&1 Versatel is available in 350 cities in Germany including 25 largest.
+* Over 28,000 buildings are connected to fiber optic (+287.3%).
+* Fiber optic spans 67,000 km.
+* '''Dommermuth said they are having a decline in voice business where earlier customers paid per minute for voice and they don't accept this anymore. That's why non-recurrent revenue is declining while recurrent revenue is growing.'''
+* They will see a decline in non-recurring revenue over a couple of years.
+* Dommermuth said over the next few years, non-recurring revenue at 1&1 Versatel will start to grow (after hitting the bottom) (Q&A).
+* '''Dommermuth said they completely overhauled the 1&1 fiber optic network and now it's better than that of Telefonica and Deutsche Telecom (Q&A).'''
+* Dommermuth said overhauling the network costed them a lot of money (Q&A).
+* Dommermuth said 1&1 Versatel is the only company that is costing them money and that will end over the next couple of years (Q&A). He said next year it will breakeven.
+==== Consumer applications (GMX and WEB.DE) ====
+* Dommermuth said the typical ARPU for a free user is €0.25-€0.30 while that of a paid user is around €3.03 (Q&A).
+==== Payment to Deutsche Telecom for the fiber optic at 1&1 ====
+* Dommermuth said hey paid an upfront cost of EUR 1 billion over four years and they have the benefit that they don't pay it over the next six years (Q&A).
+==== Possibility of selling divisions ====
+* '''Dommermuth said they don't plan to sell any of the business or sell shares of IONOS or 1&1 (Q&A).'''
+* Dommermuth said he thinks they have a good portfolio which compensate each other (Q&A).
+'''Debt'''
+* '''Dommermuth said their indebtedness keeps going down y/y despite the ongoing investments (Q&A).'''
+* They have 2.5 leverage now (Q&A) and their threshold is 3.0.
+==== Macro ====
+* Dommermuth said their business is more than resilient (Q&A).
+==== AI ====
+* Dommermuth said they see AI opportunity at IONOS since they can sell AI agents to businesses (Q&A).
+* IONOS is participating in building AI Gigafactory in Europe that will cost between EUR 3 billion to EUR 5 billion (Q&A).
+* EU will cover 35% of the cost of the Gigafactory (Q&A).
+* Dommermuth said IONOS is capable of taking up credit of EUR 1 billion without any increase in equity (Q&A).
+* '''Dommermuth said many businesses don't appreciate sovereignty yet and that a lot of businesses are logged into multiyear contracts (spanning up to 5 years) (Q&A).'''
+==== Sovereign cloud ====
+* Dommermuth also said IONOS sees big opportunities in independent cloud (Q&A).
+==== Current holdings ====
+* United Internet holds about 10% of its own shares (around 173M shares outstanding vs. 252M historically) after years of buybacks and cancellations.
+* Treasury shares are kept as strategic currency for acquisitions or employee compensation, with no voting rights while held.
+* The Board is authorized to buy back more; there’s no immediate plan to retire or sell current holdings.