United Internet Backs FY26 Outlook; Units 1&1 AG And IONOS Plan Restructuring, Job Cuts

(RTTNews) - Germany's United Internet AG (UTDI.DE) announced that its Group subsidiaries, 1&1 AG (1U1.DE) and IONOS Group SE (IOS.DE), have launched transformation and restructuring programs, including around 800 jobs cuts in total. With the move, the companies aim to increase productivity and strengthen competitiveness and future readiness. At United Internet level, one-off restructuring expenses would be 95 million euros, which will have a negative impact on earnings in fiscal year 2026. Meanwhile, the one-off special item will have no impact on the Company's operating EBITDA guidance of around 1.45 billion euros for fiscal year 2026. The Group continues to expect sales of around 6.45 billion euros and cash capex of 600 million euros to 650 million euros in 2026. Following implementation of the transformation programs, the expected annual cost savings of around 55 million euros will be invested in the company's further development. 1&1 announced restructuring program at its business customer subsidiary 1&1 Versatel, including simplification of management structures and the reduction of hierarchical levels. 1&1 Versatel plans a reduction in headcount to around 1,000 full-time employees from currently around 1,350 employees. In addition to the partial retirement agreements already in place, the company will initiate discussions regarding the structure of a voluntary program. Due to the transformation and restructuring program, 1&1 expects one-off expenses of around 60 million euros in 2026. The program would result in annual earnings contribution of around 25 million euros as of fiscal year 2028. Due to these one-time expenses, 1&1 now expects EBITDA forecast to be approximately 740 million euros. The remainder of the forecast remains unchanged. Adjusted EBITDA is still expected to be around 800 million euros. Further, IONOS' transformation program will result in a reduction in the workforce to approximately 3,350 full-time employees from the current level of around 3,800. The adjustment will be split roughly equally between domestic and international operations. The workforce reduction will be carried out primarily through voluntary redundancy programs, taking into account the specific requirements of the respective countries. IONOS expects one-off restructuring expenses of around 35 million euros, which will be primarily in the fourth quarter of 2026. Starting in 2027, IONOS expects the program to provide annual cost savings of up to 30 million euros. IONOS confirmed its outlook for adjusted EBITDA in the current fiscal year of 530 million euros.

(RTTNews) - Germany's United Internet AG (UTDI.DE) announced that its Group subsidiaries, 1&1 AG (1U1.DE) and IONOS Group SE (IOS.DE), have launched transformation and restructuring programs, including around 800 jobs cuts in total. With the move, the companies aim to increase productivity and strengthen competitiveness and future readiness.

At United Internet level, one-off restructuring expenses would be 95 million euros, which will have a negative impact on earnings in fiscal year 2026. Meanwhile, the one-off special item will have no impact on the Company's operating EBITDA guidance of around 1.45 billion euros for fiscal year 2026.

The Group continues to expect sales of around 6.45 billion euros and cash capex of 600 million euros to 650 million euros in 2026.

Following implementation of the transformation programs, the expected annual cost savings of around 55 million euros will be invested in the company's further development.

1&1 announced restructuring program at its business customer subsidiary 1&1 Versatel, including simplification of management structures and the reduction of hierarchical levels. 1&1 Versatel plans a reduction in headcount to around 1,000 full-time employees from currently around 1,350 employees.

In addition to the partial retirement agreements already in place, the company will initiate discussions regarding the structure of a voluntary program.

Due to the transformation and restructuring program, 1&1 expects one-off expenses of around 60 million euros in 2026.