MAINTAL (dpa-AFX) - Shares of United Internet AG (UDIRF.PK) and its unit 1&1 Drillisch AG were gaining in the early morning trade in Germany after the companies reported higher fiscal 2020 revenues and issued positive outlook for fiscal 2021.
In its trading statement, United Internet reported that its preliminary figures 2020 confirmed forecasted sales growth and operating EBITDA.
United Internet, the German internet specialist, posted EBITDA of around 1.18 billion euros, excluding one special item, compared to prior year's 1.24 billion euros.
Taking into account the non-recurring, non-cash effective write-off for no longer utilized VDSL contingents for existing customers, EBITDA amounted to around 1.05 billion euros.
Despite negative impacts of the coronavirus pandemic, sales rose to around 5.36 billion euros in 2020 from last year's 5.194 billion euros.
Fee-based customer contracts increased by 910,000 to 25.65 million.
United Internet subsidiary 1&1 Drillisch, a German telecommunication service provider, reported preliminary 2020 EBITDA, excluding one non-recurring one-off effect, of around 600 million euros. Including this item, EBITDA amounted to around 470 million euros.
Revenues for 2020 increased 3 percent to about 3.787 billion euros and the service revenues by 2.6 percent to about 3.020 billion euros. Customer contracts improved by 500,000 to 14.83 million.
Further for fiscal 2021, United Internet now projects sales of approximately 5.5 billion euros and EBITDA of around 1.22 billion euros, both higher than the prior year.
For fiscal 2021, 1&1 Drillisch expects service revenues to increase to around 3.1 billion euros and EBITDA to increase to around 650 million euros.
United Internet said 1&1 Drillisch is expanding its fiber optic offering and will in future receive VDSL and fiber to the home or FTTH advance services from its affiliate 1&1 Versatel. For this purpose, 1&1 Drillisch has entered into an agreement with 1&1 Versatel on the long-term purchase of FTTH and VDSL complete packages including Voice and IPTV effective from April 1, 2021.
At the same time, 1&1 Versatel has entered into an agreement with Deutsche Telekom on the use of Deutsche Telekom's FTTH and VDSL connections for households.
In Germany, United Internet shares were trading at 39.20 euros, up 3.46 percent, and 1&1 Drillisch shares were at 22.83 euros, up 6.68 percent.
Copyright RTT News/dpa-AFX
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