Report
Ben Rickett ...
  • James Ratzer
EUR 9544.00 For Business Accounts Only

1&1 (Neutral, €14, +16%) Previously: Buy, €26. United Internet (Neutral, €21, +30%) Previously: Buy, €28. Valuation cut on lower mobile growth. Downgrade to Neutral

We have been long-time buyers of 1&1, arguing that the value of the high-growth retail business was obscured by the mobile network build. However that growth has now stalled in an increasingly competitive German mobile market.
Underlying
United Internet AG

United Internet AG is a Germany-based Internet service provider (ISP) and holding company of the United Internet Group. The Company's products and technical services are divided into two key segments. The Access segment comprises narrowband, broadband and mobile access subscriptions, including the corresponding applications. The Applications segment includes such applications as home pages, e-shops, Personal Information Management applications, group work, online storage and office software. The Application segment also includes the operations of the Company's brands Sedo and affilinet, which serve customers performance-based advertising and sales possibilities. The Company's brand portfolio also includes GMX, WEB.DE, 1&1, united-domains, Fasthosts and InterNetX. In addition, the Company develops Internet based applications, such as cloud applications. The Company acts primarily via its wholly owned subsidiary 1&1 Internet AG, and Sedo Holding AG, in which it holds a majority stake.

Provider
New Street Research
New Street Research

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Analysts
Ben Rickett

James Ratzer

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