Half-year Report 2025

Half-year financial report 2025

CONTENT

4 FOREWORD OF CEO

6 INTERIM GROUP MANAGEMENT REPORT FOR THE FIRST SIX MONTHS OF 2025

6 Principles of the Group

12 General conditions

16 Business development

27 Position of the Group

35 Subsequent events

36 Risk and opportunity report

37 Forecast report

40 INTERIM FINANCIAL STATEMENTS FOR THE FIRST SIX MONTHS OF 2025

42 Group balance sheet

44 Group net income

46 Group cash flow

48 Changes in shareholders' equity

50 Notes on the interim financial statements

1. Income statement (quarterly development)

2. Responsibility statement

71 FINANCIAL CALENDAR / IMPRINT

Dear shareholders, employees, and business associates,

United Internet AG can look back on a successful first six months of 2025. In the first half of 2025, we continued to make investments in new customer contracts and the development of existing customer relationships, and thus in sustainable growth.

In total, we increased the number of fee-based customer contracts by a further 290,000 contracts to

29.31 million. 140,000 new contracts were added in the Consumer Applications segment and 210,000 contracts in the Business Applications segment. As expected, however, the number of fee-based contracts in the Consumer Access segment fell by 60,000 broadband contracts.

Adjusted for the sales contribution of the "Energy" business field, which is being offered for sale, consolidated sales in the first six months of 2025 rose by 4.3% to € 3,231.7 million (comparable prior-year figure: € 3,099.9 million).

Despite a further year-on-year increase in expenses for the 1&1 mobile network, operating EBITDA rose by 2.0% to € 675.6 million (comparable prior-year figure: € 662.3 million). The start-up costs for the 1&1 mobile network included in this figure amounted to € -130.6 million, compared to € -111.0 million in the same period last year.

In addition to network rollout costs, operating EBIT was also burdened by increased depreciation of

€ -296.9 million (prior year: € -257.9 million) resulting in particular from investments in the expansion of 1&1 Versatel's fiber-optic network and 1&1's mobile network. As a result, EBIT amounted to € 317.8 million (comparable prior-year figure: € 347.4 million).

There was a corresponding decline in operating earnings per share (EPS) from € 0.61 to € 0.59. Cash capex in the first six months of 2025 amounted to € 297.0 million (prior year: € 284.4 million).

On completion of the first six months, we confirm our full-year guidance for 2025. Without consideration of the "Energy" business field being offered for sale, we continue to expect an increase in consolidated sales to approx. € 6.45 billion (comparable prior-year figure: € 6.303 billion) and in EBITDA

to approx. € 1.35 billion (comparable prior-year figure: € 1.295 billion). Cash capex is still likely to be around € 800 million (prior year: € 774.6 million).

IN TE RI M MANAG E MENT REP OR T IN TE RI M FINA NCIA L STAT EMENT S FINANCIA L CALEND A R / IMP RIN T

F O RE W O RD

We are well prepared for the next steps in our Company's development and upbeat about our prospects for the remaining months of the fiscal year. In view of the successful first six months, we would like to express our heartfelt gratitude to all employees for their dedicated efforts, as well as to our shareholders and business associates for the trust they continue to place in United Internet AG.

Ralph Dommermuth

Montabaur, August 7, 2025

INTERIM GROUP MANAGEMENT REPORT FOR THE FIRST SIX MONTHS OF 2025

Principles of the Group

Business model

Founded in 1988 and headquartered in Montabaur, Germany, United Internet AG is a leading European internet specialist with over 29 million fee-based customer contracts and around 39 million ad-financed free accounts around the world.

The Group's operating activities are divided into the two business divisions "Access" and "Applications", which in turn comprise the reporting segments "Consumer Access" and "Business Access", as well as "Consumer Applications" and "Business Applications".

Consumer Access segment

The Consumer Access segment comprises landline-based broadband products (including the respective applications, such as home networks, online storage, Smart Home, IPTV, and video-on-demand), as well as mobile internet products for private users.

These internet access products are offered to customers as subscription contracts with fixed monthly fees (and variable, volume-based charges).

With its broadband products under the 1&1 brand (especially VDSL/vectoring and fiber-optic connections), United Internet is one of Germany's leading suppliers.

The Company uses 1&1 Versatel's fiber-optic network as the transport network for VDSL/vectoring connections and direct fiber-optic connections (FTTH) with the "last mile" being provided by city carriers and Deutsche Telekom (mainly Layer-2).

United Internet is also one of the leading providers of mobile internet products in Germany.

1&1 has a fully functional mobile network which is being permanently expanded. Wherever 1&1 does not yet have sufficient mobile coverage during the years of network expansion, it uses national roaming. A national roaming partnership with Vodafone started in late August 2024. National roaming via Vodafone will be available for all 1&1 mobile customers by the end of 2025. At the same time, national roaming services previously procured from Telefónica will be completely phased out.

Until more than 12 million existing customer contracts have been fully migrated to the 1&1 mobile network, 1&1 will also partially use the Telefónica mobile network as a so-called Mobile Virtual Network Operator (MVNO), as well as MVNO capacities of Vodafone. As of the beginning of 2024, the existing MVNO customers are being gradually migrated to the 1&1 mobile network. The migration is expected to be completed by the end of 2025.

Mobile internet products are marketed via the premium brand 1&1 as well as via discount brands, such as winSIM and yourfone, which enable the Company to target a wide range of specific user groups in the mobile communications market.

Business Access segment

In the Business Access segment, 1&1 Versatel offers a wide range of telecommunication products and solutions for business customers.

The core of the business model is a fiber-optic network with a length of over 67,000 km, which is one of the largest networks in Germany and is constantly being expanded.

1&1 Versatel uses this network to offer telecommunication products - from standardized fiber-optic direct connections to tailored ICT solutions (voice, data and network solutions) - to companies and local authorities. In addition, the 1&1 fiber-optic network is used to provide 1&1 DSL and FTTH connections and to connect antenna locations. Infrastructure services (wholesale) for national and international carriers are also provided.

Consumer Applications segment

Applications for private users are pooled in the Consumer Applications segment. These mainly comprise Personal Information Management applications (e-mail, to-do lists, appointments, addresses), online storage (cloud), and office applications.

By steadily developing this portfolio over the past years, the GMX and WEB.DE brands - the most widely used e-mail providers for German consumers for many years now - have been expanded into complete command centers for communication, information, and identity management.

Applications for private users are nearly all developed in-house and operated at the Group's own data centers. Products are offered as fee-based subscriptions (pay accounts) or for free in the form of ad-financed free accounts. These free accounts are monetized via classic - but increasingly also via data-driven - online advertising, which is marketed by United Internet Media.

With its ad-financed applications and fee-based consumer applications, United Internet is primarily active via GMX and WEB.DE in Germany, Austria, and Switzerland, where it is among the leading players. International expansion in this segment is being driven via the mail.com brand. In addition to the USA, mail.com targets countries such as the UK, France, and Spain.

Business Applications segment

In the Business Applications segment, IONOS opens up online business opportunities for freelancers and SMEs, while also helping them to digitize their processes. It offers a comprehensive range of powerful applications, such as domains, websites, web hosting, servers, e-shops, group work, online storage (cloud), and office applications, which can be used via subscription agreements. In addition, cloud solutions and cloud infrastructure are offered.

These business applications are developed at in-house development centers or in cooperation with partner firms.

IONOS is also a leading global player in this segment with activities in various European countries (Germany, France, the UK, Spain, Portugal, Italy, the Netherlands, Austria, Poland, Hungary, Romania, Bulgaria, Czech Republic, Slovakia, and Sweden) as well as in North America (the USA, Canada, Mexico).

Business applications are marketed to specific target groups via the brands IONOS, Arsys, Fasthosts, home.pl, InterNetX, STRATO, united-domains, and World4You. Moreover, we22 offers other hosting suppliers a white-label website builder for the creation of high-quality websites.

In addition to its core business, Sedo offers platforms for domain trading and the automated monetization of domains and traffic via advertising (digital advertising) in its AdTech business. Additional services such as brokerage, domain appraisals, and transfers round out Sedo's offering.

Segments, brands, and investments (as of: June 30, 2025)

* Held indirectly via a 4.71% investment in Kublai GmbH

** Held indirectly via the 63.84% investment in IONOS Group SE

Group structure, strategy, and control

With regard to the Group's structure, strategy, and control, we refer to the explanations provided in the combined Management Report 2024 (Annual Report 2024, page 38 et seq.). There were no significant changes with regard to the Group and its segments in the first half of 2025.

Main focus areas for products and innovations

As an internet service provider, the United Internet Group does not engage in research and development (R&D) on a scale comparable with manufacturing companies. Also within the context of its own sector, research and development expenditures play a fairly subordinate role. For this reason, United Internet does not disclose key figures for R&D.

At the same time, the United Internet brands stand for high-performance internet access solutions, and innovative, web-based products and applications which are mostly developed in-house. The success of United Internet is rooted in the ability to develop, combine, or adapt innovative products and services, and launch them on major markets.

In addition to constant improvements and measures to secure the reliable operation of all services offered, the programmers, product managers, and technical administrators at United Internet's domestic and foreign locations worked in particular on the following projects during the first half of 2025:

Consumer Access

⯀ Expansion of footprint for sales of 1&1 fiber-optic products (FTTH) with the inclusion of Gelsennet and EWE-TEL

⯀ Introduction of prepaid "annual packages": these new tariffs enable customers to purchase data volume for the 5G network for a year in advance

⯀ Introduction of Wi-Fi calling abroad: this enables mobile customers to use their phones automatically via Wi-Fi access even when abroad

⯀ Optimization of eSIM switching processes: automated processes provided for Apple and Google devices, enabling customers to transfer their eSIM from one device to another with minimal effort using a digitalized process

Business Access

⯀ Rollout of the new XGS-PON technology, a standard for passive optical networks (PON) that supports symmetrical data transmission at high speeds of up to 10 Gbit/s

⯀ Introduction of new encryption technologies to increase the security of business connections

⯀ Expansion of offerings for the NE4 ("last mile") of 1&1 Versatel customers, including the introduction of a fiber-copper converter

Consumer Applications

⯀ Establishment of an LLM infrastructure (LLM = Large Language Model) for secure and high-performance provision of LLMs for integration into mail products and internal use cases

⯀ Support for FedCM (Federated Credential Management) and onboarding of a first FedCM partner

⯀ Modernization of video section on the news page

⯀ Introduction of "Inbox Ad Image" product in Ad Manager for customers of 1&1 Mail & Media and IONOS

⯀ Support for permanent login of GMX customers to increase security and simplify use

Business Applications

⯀ IONOS launches IONOS GPT, a secure and sovereign European ChatGPT alternative - free of charge and GDPR-compliant

⯀ Sedo expands its product portfolio with SedoTMP to optimize and monetize search traffic

⯀ Expansion of the IONOS OneDomains platform with the addition of an SSL Checker, OneDNS, and Afternic integration

⯀ Expansion of private cloud with Bring Your Own IP (BYOIP), vSAN Enterprise, and NFS Snapshots

⯀ Expansion of Image Factory to include Managed Kubernetes (MK8s) images for IONOS Cloud

⯀ Opening of a new colocation data center in Frankfurt am Main

General economic, sector and legal conditions

Macroeconomic development

In its latest outlook for the global economy (World Economic Outlook, July 2025 Update), the International Monetary Fund (IMF) forecasts growth of 3.0% for 2025 (January outlook: 3.3%) - following growth of 3.3% in the previous year.

The IMF's experts are thus slightly more optimistic than in their April outlook (2.8%). This is due to stronger-than-expected purchases in the run-up to the planned increase in US tariffs, as well as a decline in the effective US tariff rate from 24.4% to 17.3%. At the same time, however, the IMF warned that the global economy continues to face significant risks, such as a possible renewed increase in tariffs, geopolitical tensions, and growing budget deficits.

The Fund has adjusted its 2025 forecasts for the United Internet Group's target markets in North America as follows: it forecasts growth of 1.9% (prior year: 2.8%) for the USA, and thus 0.8 percentage points less than in its January outlook. The forecast of 1.6% (prior year: 1.6%) for Canada is -0.4

percentage points less than originally expected. And for Mexico, the IMF forecasts an increase in economic output of 0.2% (prior year: 1.4%), and thus -1.2 percentage points less than at the beginning of the year.

The IMF's forecast for United Internet's important Eurozone region remains unchanged from its January outlook with an increase in economic output of 1.0% (prior year: 0.9%). The growth forecast for France was downgraded slightly by -0.2 percentage points to 0.6% (prior year: 1.1%), while the forecast for Spain has been upgraded by 0.2 percentage points to 2.5% (prior year: 3.2%). The growth forecast for Italy was also downgraded by -0.2 percentage points to 0.5% (prior year: 0.7%).

For the UK, the IMF currently expects growth of 1.2% (prior year: 1.1%), and thus 0.4 percentage points less than at the beginning of the year.

The IMF has downgraded its economic forecast for Germany - United Internet's most important market (sales share 2024: around 90%) - by -0.2 percentage points and expects economic output in 2025 to grow by just 0.1% (prior year: -0.2%). However, the IMF is therefore slightly more optimistic than in its April outlook in which it still predicted stagnation.

According to the German Federal Statistical Office, Germany's gross domestic product contracted slightly in the second quarter - after a small increase in the first quarter of 2025 (+0.3%) - and fell by 0.1% compared with the previous quarter.

Changes in 2025 growth forecasts for United Internet's key target countries and regions

Source: International Monetary Fund, World Economic Outlook (Update), January 2025, April 2025, July 2025

Sector development

Germany's digital economy remains largely crisis-proof. Despite the geopolitical uncertainty and current challenging economic environment, revenues continue to grow. At its half-year press conference 2025, the industry association Bitkom summarized the situation for the German ICT sector (ICT = information and communications technology).

However, not all companies are participating equally in the ICT sector's revenue growth. This is illustrated by the Bitkom-ifo Digital Index, which is calculated on the basis of current business conditions and the future expectations of participating companies. Although the index improved slightly in June, it remains negative at minus 1.0 points. Business expectations for the coming quarter rose by 10 points in June, from minus 13.3 to minus 3.2 points. According to Bitkom, this more positive outlook is primarily a reflection of expectations for the new federal government and the Ministry of Digital Affairs. Overall, however, the Bitkom-ifo Digital Index remains well above the ifo business sentiment index for the economy as a whole, which stands at minus 6.7 points and has been resolutely negative for more than two years.

Legal environment

In the first half of 2025, the legal environment for United Internet's business activities were largely unchanged from fiscal year 2024 and thus had no significant influence on the development of the United Internet Group.

Significant events

Federal Network Agency decision on low- and mid-band spectrum

On March 24, 2025, the German Federal Network Agency announced its decision regarding the allocation of low- and mid-band spectrum that will become available from January 2026. The decision is largely based on the consultation draft published in May 2024 and provides for an extension of existing spectrum usage rights for Deutsche Telekom, Vodafone, and Telefónica. The extension is subject to the obligation that Telefónica continues to make 2*10 MHz of its 2.6 GHz spectrum available to 1&1 for shared use, and that Deutsche Telekom, Vodafone, and Telefónica make part of their available low-band spectrum available to 1&1 for shared use. To achieve this, the authority has obliged the established network operators to conduct fair negotiations with 1&1. If 1&1 has not been granted the use of low-band spectrum by 1 January 2026, the Federal Network Agency reserves the right to enforce such use.

Purchase of 4.4 million 1&1 shares

In early April 2025, United Internet AG purchased a total of 4.4 million shares of Group subsidiary 1&1 AG. The purchase price amounted to around € 60.8 million. As a result of the purchase, United Internet AG's stake in 1&1 AG increased from 78.32% to 80.81% of capital stock.

Preliminary legal assessment of the Federal Cartel Office regarding the failure to provide antenna locations for 1&1

On April 11, 2025, the German Federal Cartel Office published its preliminary legal assessment regarding Vodafone and Vantage Towers' failure to provide antenna locations for 1&1. In its assessment, the Federal Cartel Office deemed the delayed provision of contractually agreed locations to be a violation of antitrust law, hindering 1&1's entry into the market as a fourth network operator. In late 2021, Vantage Towers entered into a contractual agreement with 1&1 regarding the shared use of a four-digit number of antenna locations, to be realized in several tranches by the end of 2025. The dates for the agreed provision targets were then contractually postponed by one year.

However, the provision of the locations promised to 1&1 has been significantly delayed since the agreement was signed. Vodafone and Vantage Towers now have the opportunity to respond to the Federal Cartel Office's assessment.

Public tender offer for 1&1 shares

Following an announcement on May 16, 2025, United Internet published the offer document on June 5, 2025 for its voluntary public tender offer in the form of a partial offer (cash offer) to the shareholders of 1&1 AG to acquire up to 16,250,827 no-par value bearer shares of 1&1 (corresponding to approximately up to 9.19% of capital stock), each with a notional value of € 1.10, against payment of a consideration of € 18.50 per 1&1 share.

The offer of € 18.50 per 1&1 share represented a premium of approximately 20% over the closing price in XETRA trading and approximately 29% over the volume-weighted 3-month average price (XETRA) as of May 15, 2025. United Internet thus offered all shareholders of 1&1 AG, including those with larger holdings, an attractive opportunity to obtain liquidity at a significant premium.

The aim of United Internet's public tender offer was to further expand its existing 80.81% stake in 1&1 and consolidate its voting majority. A clear and stable shareholder structure is particularly important in view of the investments planned for the expansion of the 1&1 mobile network over the coming years. At the same time, an appropriate free float portion is to be maintained.

The deadline for accepting the offer was July 3, 2025, 24:00 CET. A total of 7,585,033 1&1 shares were offered to United Internet as part of the voluntary public tender offer (corresponding to approximately 4.29% of capital stock). The resulting acquisition price amounted to € 140.3 million and was paid in July 2025, i.e., after the balance sheet date of June 30, 2025.

As a result, United Internet's shareholding increased from 80.81% in July 2025 to 85.10% of 1&1 AG's capital stock.

Irrespective of the actual acceptance rate determined after the balance sheet date of June 30, 2025 and the resulting purchase price, the public tender offer (which runs until July 3, 2025 and thus beyond the balance sheet date) must be presented in accordance with IAS 32 as if the offer were to be 100% accepted. With this in mind, a "theoretical purchase price" (or the maximum possible obligation) of

€ 300.6 million has been recognized in the present Interim Report 2025.

There were no other significant events in the first six months of 2025 which had a material effect on the development of business.

Business development

Use of business-relevant key financial performance indicators

In order to ensure the clear and transparent presentation of United Internet's business development, the Company's annual and interim financial statements include key performance indicators (KPIs) - in addition to the disclosures required by International Financial Reporting Standards (IFRS) - such as EBITDA, the EBITDA margin, EBIT, the EBIT margin, and free cash flow. Information on the use, definition, and calculation of these KPIs is provided in the Annual Report 2024 (page 57 et seq.).

Insofar as necessary for a clear and transparent presentation, the KPIs used by United Internet are adjusted for special items and disclosed as "key operating figures" (e.g., operating EBITDA, operating EBIT, and operating EPS).

Such special items usually refer solely to those effects capable of restricting the validity of the key financial performance indicators with regard to the Group's financial and earnings performance - due to their nature, frequency, and/or magnitude. All special items are presented and explained for the purpose of reconciliation from the unadjusted key financial figures to the key operating figures in the relevant section of the financial statements.

By contrast, expenses for the rollout of the 1&1 mobile network or start-up costs for new business fields of 1&1 Versatel are not adjusted but disclosed - should there be any - in the respective sections.

Currency-adjusted sales and earnings figures are calculated by converting sales and earnings figures with the average exchange rates of the comparative period, instead of the current period.

Termination of the "Energy" business field in the Consumer Applications segment

Following a thorough review, the Management Board and Supervisory Board decided in March 2024 to discontinue the "Energy" business field in the Consumer Applications segment. Against this backdrop, United Internet reports the sales and earnings contribution of this business field separately in its management reporting, both in the Consumer Applications segment and at Group level, and adjusts the key operating figures for 2025 and the comparative figures for 2024 (and 2023) accordingly. The same applies to customer contracts, which are also presented "adjusted". By contrast, the key financial figures for 2021-2022 remained unchanged in the multi-period overviews.

The equally discontinued business field "De-Mail" was terminated as of December 31, 2024. As a result, there is only a sales and earnings contribution from the "Energy" business field in the fiscal year 2025. This amounted to € 11.2 million (sales) and € +1.2 million (EBITDA and EBIT) in the first six months of 2025. By comparison: in the first six months of 2024, the sales and earnings contribution from "Energy" and "De-Mail" amounted to € 13.4 million (sales) and € -0.7 million (EBITDA and EBIT).

Development of divisions and segments

The United Internet Group's operating activities are divided into the two business divisions Access and Applications, which in turn are divided into the segments Consumer Access and Business Access, as well as Consumer Applications and Business Applications.

Development of the Consumer Access segment

The number of fee-based contracts in the Consumer Access segment fell by 60,000 contracts to

16.33 million in the first six months of 2025. This decline results from -60,000 broadband connections.

Development of Consumer Access contracts in the first six months of 2025

Development of Consumer Access contracts in the second quarter of 2025

In the first six months of 2025, sales of the Consumer Access segment fell slightly by 0.5% to

€ 2,006.4 million (prior year: € 2,015.9 million). High-margin service revenues - which represent the core business of the segment - developed in line with expectations and were slightly above the prior-year figure (€ 1,644.9 million) at € 1,646.5 million. Meanwhile, low-margin other sales (mainly hardware) of € 359.9 million were 3.0% or € 11.1 million down on the previous year (€ 371.0 million). Hardware sales are subject to seasonal effects and also depend strongly on the appeal of new devices and the model cycles of hardware manufacturers.

Due in part to the further year-on-year increase in expenses for the rollout of the 1&1 mobile network, segment EBITDA fell to € 283.9 million (prior year: € 326.6 million). The network rollout costs included in this figure amounted to € -130.6 million, compared to € -111.0 million in the same period last year.

The further decline is mainly due to higher wholesale costs resulting from Vodafone's slower-than-planned network growth and the switch from Telefónica to Vodafone as the national roaming provider. In the national roaming agreement with Vodafone, the capacities used by 1&1 are recognized fully in EBITDA, whereas in the national roaming agreement with Telefónica, they were partially capitalized and depreciated in scheduled amounts.

As a result of these expenses and increased depreciation for investments in 1&1's mobile network rollout, there was a year-on-year decrease in segment EBIT to € 118.1 million (prior year: € 196.1 million).

There was a corresponding decline in the EBITDA margin from 16.2% to 14.1% and in the EBIT margin

from 9.7% to 5.9%.

Key sales and earnings figures in the Consumer Access segment (in € million)

Sales

thereof service sales

thereof other sales(1)

EBITDA

EBIT

118.1

359.9

371.0

283.9

326.6(2)

(2)

1,646.5

1,644.9

2,006.4

2,015.9

- 0.5 %

+ 0.1 %

- 3.0 %

- 13.1 %

- 39.8 %

196.1

1. Mainly hardware sales

2. Including out-of-period expenses for network expansion from 2022 and 2023 (EBITDA and EBIT effect: € -14.3 million)

Quarterly development; change over prior-year quarter

1. Mainly hardware sales

2. Including out-of-period expenses for network expansion from 2022 and 2023 (EBITDA and EBIT effect: € -14.3 million)

Multi-period overview: Development of key sales and earnings figures

1. Mainly hardware sales

2. Excluding an out-of-period positive effect on earnings attributable to the second half of 2020 (EBITDA and EBIT effect: € +39.4 million)

3. Including out-of-period expenses for network expansion from 2022 and 2023 (EBITDA and EBIT effect: € -14.3 million)

Development of the Business Access segment

Sales in the Business Access segment rose by 1.4% in the first six months of 2025, from

€ 283.2 million in the previous year to € 287.3 million.

Segment EBITDA increased by 2.2% from € 78.7 million to € 80.4 million. There was a corresponding improvement in the EBITDA margin from 27.8% in the previous year to 28.0%.

In the new "5G" business field, 1&1 Versatel is setting up data centers and fiber-optic connections for the antenna locations of 1&1's mobile network and providing them to 1&1 on a rental basis as part of an intercompany agreement. In its other new business field "Expansion of business parks", 1&1 Versatel uses newly constructed regional expansion clusters to provide fiber-optic connections for companies in business parks. In the first six months of 2025, total start-up costs for the new business fields amounted to € -12.0 million for EBITDA (prior year: € -16.4 million) and € -66.4 million for EBIT (prior year: € -52.0 million).

As a result of increased depreciation due to the associated investments in network infrastructure,

segment EBIT decreased from € -42.2 million in the previous year to € -49.0 million.

Key sales and earnings figures in the Business Access segment (in € million)

Sales

EBITDA

EBIT

-49.0

-42.2

80.4

78.7

287.3

283.2

+ 1.4 %

+ 2.2 %

H1 2025

H1 2024

Quarterly development; change over prior-year quarter

Multi-period overview: Development of key sales and earnings figures

Development of the Consumer Applications segment

The number of pay accounts in the Consumer Applications segment rose by 140,000 to 3.18 million in the first six months of 2025. By contrast, ad-financed free accounts were 360,000, or 0.9%, down on December 31, 2024, due to seasonal effects.

Development of Consumer Applications accounts in the first six months of 2025

Development of Consumer Applications accounts in the second quarter of 2025

1. Contract figures as of June 30,2025, as of March 31, 2025 and as of December 31, 2024 excluding 0.02 million Energy contracts (value-added subscription)

The growth of pay contracts in particular led to sales growth in the first six months of 2025, from

€ 157.8 million to € 160.1 million (+1.5%). Adjusted for sales of € 13.4 million from "Energy" and "De-Mail" in the prior-year period and € 11.2 million from "Energy" in the first six months of 2025, sales of the Consumer Applications segment rose by 3.1%, from € 144.4 million to € 148.9 million.

EBITDA rose by 3.6%, from € 53.2 million in the prior-year period to € 55.1 million, and EBIT by 2.3% from € 48.3 million to € 49.4 million. Adjusted for EBITDA and EBIT contributions from "Energy" and "De-Mail" of € -0.7 million in the prior-year period and € +1.2 million from "Energy" in the first six months of 2025, operating segment EBITDA was unchanged from the previous year at € 53.9 million. Due to slightly higher depreciation and amortization, operating segment EBIT of € 48.2 million was down on the previous year (prior year: € 49.0 million).

There was a corresponding decline in the operating EBITDA margin from 37.3% to 36.2% and in the

operating EBIT margin from 33.9% to 32.4%.

Key sales and earnings figures in the Consumer Applications segment (in € million)

H1 2025

H1 2024

Sales

EBITDA

EBIT

53.9(1)

53.9(2)

48.2(1)

49.0(2)

148.9(1)

144.4(2)

+ 3.1 %

0.0 %

- 1.6 %

1. Excluding the sales and earnings contribution from Energy (sales contribution: € 11.2 million; EBITDA contribution: € +1.2 million; EBIT contribution: € +1.2 million)

2. Excluding the sales and earnings contributions from Energy and De-Mail (sales contribution: € 13.4 million; EBITDA contribution: € -0.7 million; EBIT contribution: € -0.7 million)

Quarterly development; change over prior-year quarter

1. Excluding the sales and earnings contributions from Energy and De-Mail

   (sales contribution: € 6.5 million, EBITDA contribution: € +0.5 million, EBIT contribution: € +0.4 million in Q3 2024; sales contribution: € 6.3 million, EBITDA contribution: € -0.5 million, EBIT contribution: € -0.6 million in Q4 2024; sales contribution: € 6.8 million, EBITDA contribution: € +0.6 million, EBIT contribution: € +0.6 million in Q2 2024)

2. Excluding the sales and earnings contribution from Energy

(sales contribution: € 5.9 million; EBITDA contribution: € +0.2 million; EBIT contribution: € +0.2 million in Q1 2025; sales contribution: € 5.3 million; EBITDA contribution: € +1.0 million; EBIT contribution: € +1.0 million in Q2 2025)

Multi-period overview: Development of key sales and earnings figures

1. Excluding a non-cash valuation effect from derivatives (EBITDA and EBIT effect: € +4.6 million)

2. Excluding a non-cash valuation effect from derivatives (EBITDA and EBIT effect: € -4.4 million)

3. Excluding the sales and earnings contributions from Energy and De-Mail (sales contribution: € 13.9 million; EBITDA contribution: € -3.0 million; EBIT contribution: € -3.0 million)

4. Excluding the sales and earnings contributions from Energy and De-Mail (sales contribution: € 13.4 million; EBITDA contribution: € -0.7 million; EBIT contribution: € -0.7 million)

5. Excluding the sales and earnings contribution from Energy (sales contribution: € 11.2 million; EBITDA contribution: € +1.2 million; EBIT contribution:

€ +1.2 million)

Development of the Business Applications segment

The number of fee-based Business Applications contracts increased by 210,000 contracts in the first six months of 2025. This growth resulted from 80,000 contracts in Germany and 130,000 contracts abroad. As a result, the total number of contracts rose to 9.80 million.

Development of Business Applications contracts in the first six months of 2025

Development of Business Applications contracts in the second quarter of 2025

Sales of the Business Applications segment rose by 19.1% in the first six months of 2025, from

€ 751.6 million in the previous year to € 895.0 million.

There was also strong growth in segment EBITDA of 24.6%, from € 207.4 million in the previous year to

€ 258.4 million. The same applies to segment EBIT, which improved by 33.4% from € 152.8 million to

€ 203.9 million.

The EBITDA margin and EBIT margin also improved correspondingly from 27.6% to 28.9% and from 20.3% to 22.8%, respectively.

H1 2025

H1 2024

Key sales and earnings figures in the Business Applications segment (in € million)

751.6

Sales

895.0

+ 19.1 %

EBITDA

EBIT

25

207.4

20

152.8

3.9

8.4

+ 24.6 %

+ 33.4 %

Quarterly development; change over prior-year quarter

Multi-period overview: Development of key sales and earnings figures

1. Excluding IPO costs (EBITDA and EBIT effect: € -2.4 million)

2. Excluding IPO costs (EBITDA and EBIT effect: € +11.7 million net (IPO costs and offsetting assumption of costs by IONOS shareholders))

Share and dividend

Over the course of the first six months of 2025, the United Internet share price rose by 50.9% from

€ 15.67 as of December 31, 2024 to € 23.64 on June 30, 2025. The comparative DAX and MDAX indices performed well during the reporting period and rose by 20.1% and 19.1%, respectively. Compared to the same reporting date last year, the share price of United Internet AG was 17.5% above the prior-year level (€ 20.12 on June 30, 2024).

United Internet DAX

MDAX

Share performance in the first half of 2025 (Xetra trading); indexed in comparison to DAX and MDAX

160%

150%

140%

130%

120%

110%

100%

90%

Jan. Feb. Mar. Apr. May June

Multi-period overview: share performance (in €; Xetra trading)

Shareholder structure (as of: June 30, 2025)

Shareholder Shareholding

Ralph Dommermuth

Presentation of the total positons shown above based on the most recent notification of voting rights in accordance with Sections 33 ff. of the German Securities Trading Act. Accordingly, only voting rights notifications that have reached at least the first notification threshold of 3% are taken into account. In addition, any directors' dealings announcements available to the Company have been taken into account accordingly.

At the Annual Shareholders' Meeting of United Internet AG held on May 15, 2025, the dividend proposal of the Management Board and Supervisory Board was approved with a majority of 99.97% of votes cast. The proposal for the fiscal year 2024 was a regular dividend of € 0.40 per share plus a one-off catch-up dividend of € 1.50 per share as compensation for the reduced dividend payments of the fiscal years 2018 to 2023. On the basis of around 172.8 million shares with dividend entitlement, a total of € 328.4 million was distributed on May 20, 2025.

The regular dividend for the fiscal year 2024 resulted in a dividend payment of € 69.1 million. The dividend payout ratio was therefore 39.4% of adjusted consolidated net income after minority interests for 2024 (€ 175.5 million) and was thus - despite the investments already made and still due to be made in the 1&1 mobile network and in the expansion of the fiber-optic network - at the upper end of the dividend policy. Based on the closing price of the United Internet share on June 30, 2025, the dividend yield from the regular dividend was 1.7%.

Multi-period overview: Ordinary dividend development

1. Without special items

2. As of: June 30

3. Plus catch-up dividend (€ 1.50)

   Capital stock and treasury shares

   As at the balance sheet date of June 30, 2025, United Internet AG held a total of 19,162,689 treasury shares, corresponding to 9.98% of the capital stock of 192 million shares (December 31, 2024: 19,162,689 treasury shares or 9.98% of capital stock).

   Investor Relations

   United Internet attaches great importance to maintaining close contact with institutional and private investors, as well as with financial analysts. The Company aims to provide all target groups with timely information without discrimination, as continuous and transparent capital market communication is essential for the long-term growth of the Company's value. To this end, the Management Board and the Investor Relations team were in regular contact with capital market stakeholders throughout the first six months of 2025. United Internet continues to take an proactive approach to discussing and explaining the progress of its business strategy via its quarterly statements, half-year financial report and annual report, at press and analyst conferences, and via virtual formats. Moreover, the Annual Shareholders' Meeting, which is held in person, provides an opportunity for in-depth dialogue with shareholders. In addition to these formats, management and the Investor Relations team held numerous virtual and

   face-to-face meetings at the Company's offices in Montabaur, as well as at roadshows and conferences in Germany and abroad.

   A range of topics were discussed during these talks with stakeholders, including the Group's strategic priorities, its progress in rolling out the 1&1 O-RAN mobile network, the financial targets including potential future capital allocations, as well as questions surrounding digital sovereignty. External factors such as competitive developments were also of great interest.

   Apart from one-on-one meetings, stakeholders can also receive the latest news around the clock via the Company's extensive and bilingual website (https://www.united-internet.de). In addition to the publication dates of financial reports, the dates and venues of roadshows and conferences are made publicly available at https://www.united-internet.de/en/investor-relations/financial-calendar. Digital versions of the Annual Report and Sustainability Report are also available on the company's website as part of its comprehensive range of information.

   Personnel report

   As of June 30, 2025, the United Internet Group employed 10,824 people. Compared to the previous year (10,966 employees), there was therefore a decrease in headcount of 142 employees or 1.3%.

   Headcount in Germany fell by 156 employees or 1.7%, from 8,989 in the previous year to 8,833 on June 30, 2025. At the Group's companies outside Germany, headcount increased slightly by 14 or 0.7%, from 1,977 in the previous year to 1,991.

   From the segment perspective, there were 3,243 employees in the Consumer Access segment (prior year: 3,372), 1,647 in the Business Access segment (prior year: 1,592), 1,115 in the Consumer Applications segment (prior year: 1,070), 4,157 in the Business Applications segment (prior year: 4,306), as well as 662 in the Corporate/Shared Services division (prior year: 626).

   Multi-period overview: Headcount development by domestic/foreign(1)

   	June 30, 2021	June 30, 2022	June 30, 2023	June 30, 2024	June 30, 2025	Change
   Employees, total	9,910	10,167	10,687	10,966	10,824	- 1.3%
   thereof in Germany	8,127	8,283	8,690	8,989	8,833	- 1.7%
   thereof abroad	1,783	1,884	1,997	1,977	1,991	+ 0.7%

   1. Active employees as June 30 of the respective fiscal year

Multi-period overview: Headcount development by segment(1)

1. Active employees as June 30 of the respective fiscal year

Personnel expenses rose by 3.4% from € 404.4 million in the previous year to € 418.3 million in the first half of 2025 -in other words, slightly more slowly than sales growth (+4.3%). As a result, the personnel expense ratio declined slightly from 13.0% to 12.9%.

Multi-period overview: Development of personnel expenses; change over previous year

Position of the Group

There were no significant acquisition or divestment effects on consolidated and segment sales and EBITDA in the first half of 2025. There were also only minor positive currency effects at Group and segment level (Business Applications segment) amounting to € 0.6 million for sales and € 0.4 million for EBITDA. The same applies to the Group's asset position, for which there were no significant effects from currency fluctuations.

Earnings position

In the first half of 2025, the total number of fee-based customer contracts in the United Internet Group increased by 290,000 contracts to 29.31 million. Due to seasonal effects, however, ad-financed free accounts were 360,000, or 0.9%, down on December 31, 2024.

Adjusted for the sales contribution of "Energy" and "De-Mail" (€ 13.4 million) in the previous year, as well as "Energy" in the first six months of 2025 (€ 11.2 million), consolidated sales rose by 4.3% from

€ 3,099.9 million in the previous year to € 3,231.7 million in the first six months of 2025. Sales outside Germany rose by 8.2% to € 350.0 million (prior year: € 323.4 million).

The cost of sales increased significantly from € 2,089.6 million in the previous year to

€ 2,232.3 million. As a result, the cost of sales ratio increased from 67.1% (of sales) in the previous year to 68.8% (of sales) in the first half of 2025. There was a corresponding decline in the gross margin from 32.9% to 31.2% and a fall in gross profit of 1.3% from € 1,023.7 million to € 1,010.6 million. This decrease was mainly due to increased expenses for the 1&1 mobile network and higher depreciation and amortization due to investments in the expansion of the 1&1 Versatel fiber-optic network and the 1&1 mobile network.

Selling expenses rose slightly more slowly than sales, from € 486.5 million (15.6% of sales) in the previous year to € 501.9 million (15.5% of sales). Administrative expenses also increased more slowly than sales from € 148.7 million (4.8% of sales) to € 151.2 million (4.7% of sales).

Multi-period overview: Development of key cost items

(1) Including the out-of-period positive effect on earnings attributable to the second half of 2020 (effect: € +39.4 million)

Other operating income and expenses rose from € 27.6 million in the previous year to € 32.5 million in the first half of 2025. Impairment losses on receivables and contract assets, however, increased only slightly from € -69.5 million to € -70.9 million.

Without consideration of the EBITDA and EBIT contributions from "Energy" and "De-Mail" of € -0.7 million in the previous year and € +1.2 million from "Energy" in the first half of 2025, the Group's key performance measures developed as follows in the first six months of 2025:

Despite the further year-on-year increase in expenses for the 1&1 mobile network, consolidated operating EBITDA rose by 2.0% to € 675.6 million (prior year: € 662.3 million). The start-up costs for the 1&1 mobile network included in this figure amounted to € -130.6 million, compared to € -111.0 million in the same period last year.

In addition to network rollout costs, operating EBIT was also burdened by increased depreciation totaling € -296.9 million (prior year: € -257.9 million) resulting in particular from investments in the expansion of 1&1 Versatel's fiber-optic network and 1&1's mobile network. As a result, EBIT amounted to

€ 317.8 million (prior year: € 347.4 million).

Due to the strong growth in revenue, the operating EBITDA margin declined from 21.4% in the previous year to 20.9%. The operating EBIT margin fell from 11.2% to 9.8%.

Key sales and earnings figures of the Group (in € million)

H1 2025

H1 2024

Sales

EBITDA

EBIT

317.8(1)

347.4(2)

675.6(1)

662.3(2)

3,231.7(1)

3,099.9(2)

+ 4.3 %

+ 2.0 %

- 8.5 %

1. Excluding the sales and earnings contribution from Energy (sales contribution: € 11.2 million; EBITDA contribution: € +1.2 million; EBIT contribution: € +1.2 million)

2. Excluding the sales and earnings contributions from Energy and De-Mail (sales contribution: € 13.4 million; EBITDA contribution: € -0.7 million; EBIT contribution: € -0.7 million); including out-of-period expenses for network expansion from 2022 and 2023 (EBITDA and EBIT effect: € -14.3 million)

Quarterly development; change over prior-year quarter

1. Excluding the sales and earnings contributions from Energy and De-Mail

   (sales contribution: € 6.5 million, EBITDA contribution: € +0.5 million, EBIT contribution: € +0.4 million in Q3 2024; sales contribution: € 6.3 million, EBITDA contribution: € -0.5 million, EBIT contribution: € -0.6 million in Q4 2024; sales contribution: € 6.8 million, EBITDA contribution: € +0.6 million, EBIT contribution: € +0.6 million in Q2 2024)

2. Excluding the sales and earnings contribution from Energy

   (sales contribution: € 5.9 million; EBITDA contribution: € +0.2 million; EBIT contribution: € +0.2 million in Q1 2025; sales contribution: € 5.3 million; EBITDA contribution: € +1.0 million; EBIT contribution: € +1.0 million in Q2 2025)

3. Including out-of-period expenses for network expansion from 2022 and 2023 (EBITDA and EBIT effect: € -14.3 million)

Multi-period overview: Development of key sales and earnings figures

1. Excluding the out-of-period positive effect on earnings attributable to the second half of 2020 (EBITDA and EBIT effect: € +39.4 million) and excluding a non-cash valuation effect from derivatives (EBITDA and EBIT effect: € +0.9 million)

2. Excluding a non-cash valuation effect from derivatives (EBITDA and EBIT effect: € +4.6 million) and excluding IPO costs IONOS (EBITDA and EBIT effect: € -2.4 million)

3. Excluding the sales and earnings contributions from Energy and De-Mail (sales contribution: € 13.9 million; EBITDA contribution: € -3.0 million; EBIT contribution: € -3.0 million) and excluding IPO costs IONOS (EBITDA and EBIT effect: € -1.6 million net (IPO costs and offsetting pro rata assumption of costs by the IONOS co-shareholder))

4. Excluding the sales and earnings contributions from Energy and De-Mail (sales contribution: € 13.4 million; EBITDA contribution: € -0.7 million; EBIT contribution: € -0.7 million); including out-of-period expenses for network expansion from 2022 and 2023 (EBITDA and EBIT effect: € -14.3 million)

5. Excluding the sales and earnings contribution from Energy (sales contribution: € 11.2 million; EBITDA contribution: € +1.2 million; EBIT contribution:

€ +1.2 million)

In line with the decline in EBIT, operating earnings before taxes (EBT) of € 244.1 million were also down on the previous year (€ 255.6 million). This figure includes a financial result of € -77.9 million (prior year:

€ -61.5 million) as well as an improved result from associated companies of € 4.1 million (prior year: € -30.3 million, excluding a non-cash impairment loss of € -170.5 million on the investment in Kublai).

Without consideration of the earnings contributions from "Energy" and "De-Mail" in 2024 (EPS effect:

€ -0.01) and the above mentioned non-cash impairment loss on the investment in Kublai (EPS effect:

€ -0.99) in the prior-year period, as well as the contribution to earnings from "Energy" in the first half of 2025 (EPS effect: € +0.01), operating earnings per share (EPS) decreased from € 0.61 to € 0.59.

Financial position

Cash flow before changes in balance sheet items improved from € 557.9 million in the previous year to € 578.5 million in the first six months of 2025.

There was a significant increase in cash flow from operating activities from € 175.1 million to € 400.9 million. This was mainly due to the discontinuation of the annual prepayment made in the previous year under the contingent agreement with Deutsche Telekom, as well as - with an opposing effect - phasing effects from the fourth quarter of 2024 amounting to € 110.0 million (prior year: € 104.3 million).

Cash flow from investing activities in the reporting period led to a net outflow of € -273.9 million (prior year: € -280.9 million). This resulted mainly from capital expenditures to acquire property, plant and equipment and intangibles of € -297.0 million (prior year: € -284.4 million).

United Internet's free cash flow is defined as cash flow from operating activities, less capital expenditures, plus payments from disposals of intangible assets and property, plant and equipment.

Free cash flow in the first half of 2025 improved correspondingly to € 105.8 million (prior year: € -105.8 million).

After deducting the cash flow item "Redemption of lease liabilities" - disclosed in cash flow from financing activities since the initial application of the accounting standard IFRS 16 - free cash flow (after leasing) amounted to € 25.1 million (prior year: € -185.8 million).

In the first six months of 2025, cash flow from financing activities of € -211.0 million (prior year:

€ 115.4 million) was dominated by the assumption of loans (€ 365.2 million; prior year: € 342.9 million), payments for interest (€ -67.5 million; prior year: € -46.6 million), the redemption of lease liabilities (€ -80.7 million; prior year: € -80.0 million), dividend payments (€ -328.4 million; prior year: € -86.4 million), as well as payments to minority shareholders (€ -97.9 million; prior year: € -12.6 million) in connection with a share buyback program of Group subsidiary IONOS Group SE and United Internet's purchase of shares in subsidiary 1&1 AG already completed in early April.

As of June 30, 2025, cash and cash equivalents amounted to € 30.2 million, compared to € 37.5 million on the same date last year.

Development of key cash flow figures

1. Free cash flow is defined as cash flow from operating activities, less capital expenditures, plus payments from disposals of intangible assets and property, plant and equipment

2. 2025 including the repayment portion of lease liabilities (€ -80.7 million), which have been reported under cash flow from financing activities since the fiscal year 2019 (IFRS 16)

3. 2024 including the repayment portion of lease liabilities (€ -80.0 million), which have been reported under cash flow from financing activities since the fiscal year 2019 (IFRS 16)