We were in Frankfurt yesterday where United Internet provided new guidance for 2026, and new 1&1 guidance out to 2028, implying upside to mid-term FCF. In this note we review that guidance and discuss 1&1’s valuation following the Versatel transfer.
United Internet has announced that 1&1 will acquire its sister company Versatel at a €1.3bn valuation. While there is operational logic to this combination, the financial terms seem unfavourable for the 1&1 minorities, as we struggle to see a path to breakeven for Versatel.
1&1 reported solid Q3 results, leaving full-year guidance broadly unchanged apart from some capex phasing. The company has completed the subscriber migration to its own network, although site rollout remains sluggish and no progress on low-band spectrum. At the broader United Internet group, results were weighed down by the AdTech segment, where EBITDA fell to zero following a shift in Google’s advertising model.
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