United Internet announces 2022 outlook and contract signings for mobile network roll-out

- Guidance 2022: sales approx. EUR 5.8 billion; EBITDA approx. EUR 1.25 billion

- Additional marketing activities of IONOS to raise brand awareness

- Investments for 5G network construction and expansion of fiber-optic network

- Intercompany contract between 1&1 Mobilfunk and 1&1 Versatel

- Cooperation with Vantage Towers

Montabaur, December 9, 2021. United Internet AG forecasts an increase in consolidated sales to approx. EUR 5.8 billion for its fiscal year 2022 (guidance 2021: approx. EUR 5.6 billion). Despite additional investments, EBITDA is expected to be on a par with 2021 and reach approx. EUR 1.25 billion again in 2022. EBITDA includes initial costs for 5G network construction of approx. EUR 70 million (compared to approx. EUR 40 million in 2021), as well as approx. EUR 30 million for additional marketing activities of the cloud provider IONOS to further raise brand awareness in its most important European markets.

In the coming year, the company plans significantly higher capital expenditures (capex), especially for the construction of its 5G network, as well as for the expansion of its fiber-optic network to connect the 5G antennas and provide coverage in additional expansion areas. The exact capex amount will depend in part on the availability of hardware and civil engineering services and is likely to be between EUR 800 million and EUR 1 billion (expectation 2021: approx. EUR 350 million).

1&1 Mobilfunk GmbH, a subsidiary of 1&1 AG and indirect subsidiary of United Internet AG, today signed an intercompany agreement with 1&1 Versatel Deutschland GmbH, an indirect subsidiary of United Internet AG, regarding cooperation on the construction and operation of its completely virtualized mobile communications network based on the new OpenRAN technology. Among other things, the agreement specifies that 1&1 Versatel will provide its access network (especially fiber-optic cables) and data centers for operating the 1&1 mobile network on a rental basis. The agreement has an initial term until the end of 2050.

In addition, 1&1 Mobilfunk GmbH today signed a long-term agreement with Vantage Towers AG, one of Europe's leading companies for radio tower infrastructure, for the renting of antenna locations.

Vantage Towers is one of the largest owners of radio towers in Germany. Under the new partnership, the company will therefore play a major role in providing the passive infrastructure for 1&1's mobile communications network. This means that during the network construction phase, 1&1 will be able to access several thousand existing towers of Vantage Towers, as well as new antenna locations still to be developed. Specifically, the colocation of 3,800 roof and mast locations until the end of 2025 has been agreed. In addition, there is a potential expansion to up to 5,000 sites. The term of the individual location rents is at least 20 years and can be prolonged on multiple occasions by 1&1.

Vantage Towers will also be responsible for installing 1&1's 5G high-performance antennas on its towers as well as for services relating to approval procedures, preparatory work, and the construction of new antenna sites.

"With the conclusion of these agreements today, 1&1 has key elements in place to drive forward the roll-out of our 5G mobile communications network," states Ralph Dommermuth, CEO of United Internet AG. "The triad of fast mobile communications, fiber-optic connections, and cloud applications is the key for the digital future. The United Internet Group is very well positioned and will invest heavily in these business fields in the coming years."

About United Internet
With over 26 million fee-based customer contracts and more than 39 million ad-financed free accounts, United Internet AG is a leading European internet specialist. At the heart of United Internet is a high-performance "Internet Factory" with approx. 10,000 employees, of which around 3,200 are engaged in product management, development, and data centers. In addition to the high sales strength of its established brands (such as 1&1, GMX, WEB.DE, IONOS, STRATO, and 1&1 Versatel), United Internet stands for outstanding operational excellence with around 66 million customer accounts worldwide.

Contact partner
United Internet AG
Lisa Pleiß
Phone +49 2602 96-1616
[email protected]

Note
In the interests of clear and transparent reporting, the annual financial statements and interim statements of United Internet AG, as well as its ad-hoc announcements pursuant to Art. 17 MAR, contain additional financial performance indicators to those required under International Financial Reporting Standards (IFRS), such as EBITDA, EBITDA margin, EBIT, EBIT margin and free cash flow. Information on the use, definition and calculation of these performance measures is provided in the Annual Report 2020 of United Internet AG on page 57.