United Internet, a provider of broadband and telephony services in Germany under the brand 1&1, has reported consolidated sales of EUR2.655 billion (USD3.7 billion) for the twelve months ended 31 December 2013, an increase of 10.8% from EUR2.396 billion the previous year. Earnings before interest, tax, depreciation and amortisation (EBITDA) totalled EUR407.2 million, up 24.9% year-on-year, while EBIT rose 34.3% from EUR232.7 million in 2012 to EUR312.5 million the following year. The company’s ‘Access’ segment saw sales jump 12.7% year-on-year to EUR1.788 million for full year 2013, with growth driven by a rise in the number of fee-based customer contracts from 4.72 million at the end of 2012 to 5.54 million twelve months later, due mainly to strong demand for 1&1 mobile internet products. Of that total, 3.18 million were DSL subscribers on ‘complete’ (ULL) packages (up from 2.79 million a year earlier), 1.98 million were mobile internet users (1.41 million) and the remaining 380,000 were T-DSL/R-DSL subscribers (down from 520,000). The access segment reported a 27.9% year-on-year rise in EBITDA from EUR191.8 million in 2012 to EUR245.4 million the following year, and posted a 32.3% increase in EBIT to EUR217.4 million.
‘United Internet can look back on a very successful year,’ commented CEO Ralph Dommermuth, adding: ‘By investing in new business fields in 2013, we were able to widen the base for future growth.’ United Internet forecasts sales growth of approximately 10% for 2014 to EUR2.9 billion. Taking into account start-up losses in new business fields of around EUR40 million and advertising expenses of around EUR 10 million for the ‘E-Mail made in Germany’ initiative, EBITDA is expected to increase to roughly EUR520 million.