Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on UNITED INTERNET AG-REG SHARE. We currently have 13 research reports from 1 professional analysts.
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UNITED INTERNET AG-REG SHARE
UNITED INTERNET AG-REG SHARE
Strengthening the domestic web-hosting business
03 Jan 17
United Internet has reached an agreement with Deutsche Telekom to buy Strato AG, a web-hosting company. The deal will be worth around €600m, representing an Enterprise Value/EBITDA (2016) of 12.4x. The transaction is expected to be closed in the first half of the current financial year. According to the management of United Internet, €566m will be paid on the completion of the deal and €34m later, subject to some performance milestones. Strato AG will become part of the new holding structure of the “Business Applications” division in which Warburg Pincus owns a 33.3% stake.
The web-hosting market – still a scattered landscape
23 Nov 16
A number of web-hosting companies are still not making real net profits. Based on adjusted EBITDA numbers, however, these companies look quite profitable. The reality is somewhat different. According to research from hostadvice.com, United Internet is the second largest web-hosting company worldwide with a market share of 4.28%. The US-company GoDaddy, the market leader, has a market share of around 4.65%. The German company Strato AG, a subsidiary of Deutsche Telekom, has a market share of 2.23% followed by Amazon Web Services (AWS) with a market share of 2.13% and OVH.com (French company) with 2.05% and the German company Hetzner with around 1.95%. The survey is based on the number of customers but these numbers also differ. GoDaddy has around 13.8m customers and United Internet around 6m. GoDaddy is a leading technology provider in web-hosting and a global market leader in domain name registration. In 2015, the company had 62m domains under management representing a market share of around 20% out of a total 299m domains. The company added 1.1m new customers to a total of 13.8m in 2015. Securing a domain name is the first step in creating a digital web presence. The company generated around 52% of total revenues in 2015 with domain products. To create and manage the digital identity, the company offers hosting products. GoDaddy designs and develops cloud-based technology products. In 2015, the company hosted around 10m websites. Major products are Website Builder, E-commerce and Search Engine Visibility. In addition, the company offers own (email accounts, email marketing) and third-party business applications, e.g. Microsoft Office 365. Major competitors in traditional domain registration services and web-hosting solutions are Endurance, Rightside, United Internet and Web.com. Website creation and management solutions are offered by Shopify, Squarespace, Wix and WordPress. Symantec and Rackspare are offering cloud infrastructure services and online security solutions. Rackspace entered into a US$4.3bn or US$32 per share transaction to become a private company again. Various funds managed by Apollo Global Management acquired the company. The deal will be closed in the fourth quarter. Security, however, is the cornerstone of web-hosting, especially since the emergence of cloud computing. In November 2016, Symantec acquired LifeLock for a total of US$2.3bn. LifeLock has more than 4.4m customers and offers identity-theft protection. Constant Contact, OpenTable, Yelp and Zillow are competing with GoDaddy in alternative web presence and marketing solutions. Providers of productivity tools and business-class emails, file-sharing systems and payments are also competing with the company. These are companies such as Dropbox, Intuit, Xero and Square.
Strong performance and guidance confirmed
15 Nov 16
The company reported solid Q3 16 results. Revenues increased 5.3% to €981.1m and EBITDA grew 4.6% to €213m. The EBITDA margin declined marginally from 21.9% to 21.7%. EBIT grew 10.1% to €164.8m and the EBIT margin increased from 16.1% to 16.8%. Net profit improved 9.8% to €109.6m. Selling and marketing expenses, the main driver of the operating performance, declined 2.4% to €125.8m. Although the company reduced customer acquisition costs, the number of customers increased further. In the first nine months, revenues grew 6.4% to €2.9bn and EBITDA 10.5% to €613.3m. The EBITDA margin improved from 20.1% to 20.9%. Net profit, however, plummeted 78.7% to €58.4m mainly due to the write-down in Rocket Internet of around €254.9m as announced previously. The total number of subscription-based customers increased by 8.6% or 1.32m to 16.75m. The number of Access contracts grew by 980,000 to 8.5m and the number of Business Applications contracts by 4.9% to 6.05m.
Hats off to Mr Dommermuth!
11 Nov 16
United Internet and WP XII Venture Holdings, an affiliate of the private equity company Warburg Pincus, have signed an agreement. Warburg Pincus will acquire a 33.33% stake in the Business Applications division. The total value of the Business Applications division is around a €2.55bn enterprise value and a €1.35bn equity value. United Internet is providing an intercompany loan of €1.2bn as part of the deal. Warburg Pincus will invest around €450m. An initial amount of €334m is expected to be paid in the first half of 2017. The remaining payment of €116m will be paid later depending on performance milestones and currency exchange rates. After the closing of the deal, United Internet will still own 66.67% of the division which will still be fully consolidated.
Value creation already executed
06 Oct 16
According to the latest rumours in the market, Deutsche Telekom and United Internet are both bidding for the Anglo-German internet domain and hosting company Host Europe Group (HEG). The acquisition price is expected to reach at least €1.5bn. HEG operates seven data centres in Europe and the USA with over 1,100 employees. In Europe, HEG is the third largest hosting provider with more than 1.6m customers (1.5m customers in 2013) and over 7m domain names.
Another write-off expected in Q3 16
02 Sep 16
Rocket Internet’s share price reached €17.47 at the end of the second quarter. Consequently, management of United Internet took total impairment charges of €254.9m, of which €98m was written-off in the second quarter alone. The share price of Rocket Internet SE declined from €24.61 (at the end of March) to €17.47 (at the end of June). United Internet has invested around €493.8m, or €35.93 per share. After the write-off, around €238.9m will be left.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Making Mobiles Better
17 Jan 17
Mobile phones are increasingly the key connection for the modern world. This means that the performance of mobile phones, and their networks, is going to become more critical for all the apps and businesses that rely on them. New technologies such as VR, AR, and AV will need better, more reliable connections to really move into the mainstream. In this thematic piece we attempt to identify some of the most important issues facing mobile phone networks and their users, and start to identify solutions and enablers that will solve these problems and create value by doing so.
N+1 Singer - Small-cap quantitative research - Momentum screen refresh + 10 focus stocks
12 Jan 17
We have refreshed our momentum style screen for the first time since inception on 26 July 2016. As before, the screen selects the 25 stocks exhibiting the most extreme momentum characteristics, according to our measurement method. From these we have selected 10 to focus on. Since inception the screen has underperformed both the main small-cap and micro-cap indices against a background of generally rising momentum. We have noted a subset of the basket, where decelerating momentum at the time of measurement appears correlated with significant share price falls since selection. We shall monitor this factor with the new screen, albeit there are only two such stocks showing this pattern, namely Lamprell (not rated) and Gear4music (not rated).
N+1 Singer - Morning Song 12-01-2017
12 Jan 17
As anticipated, the second half has again been stronger than H1 and results will be broadly in line with expectations. In line with this, the order book has continued to grow and is at record levels. This confirms that significant progress has been made in the Group’s shift towards its Technology Products division which, as targeted, contributed c.60% of group revenue in FY16. The small acquisition of Cable Power also gives a complementary boost to the product range. It is also worth noting the significant reduction in net debt, £1.0m ahead of our forecast. We remain supportive of the Group’s strategy and continue to see a bright future as this transition towards a design led technology solutions business continues. We look forward to more detail in March at the final results.
33% upgrade to January 2017 PBT
09 Jan 17
Redstone has released a trading update stating it ‘expects to report EBITDA at the upper end of market expectations’. This implies EBITDA of £1.8m which is above our current estimate of £1.5m. Accordingly, we are upgrading our PBT forecast for the year ending January 2017 by 33% to £1.2m from £0.9m. We reiterate our buy recommendation with a 2.2p price target implying 69% upside.
Panmure Morning Note 18-01-2017
18 Jan 17
Blancco technology, a leading provider of data erasure solutions and mobile device diagnostics, has announced that its underlying profits are ahead of expectations. Organic sales growth remains strong, the group continues to win larger ticket orders and the mobile diagnostics is performing ahead of plan. Consequently, we are raising our FY17 PBT forecast from £8.0m to £8.3m.