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Research Tree provides access to ongoing research coverage, media content and regulatory news on UNITED INTERNET AG-REG SHARE. We currently have 12 research reports from 1 professional analysts.
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UNITED INTERNET AG-REG SHARE
UNITED INTERNET AG-REG SHARE
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.
Solid operating performance but Rocket Internet still a disaster
15 Aug 16
United Internet reported solid Q2 16 results. Revenues increased 7% to €982.6m and EBITDA jumped 11.1% to €197.6m. The EBITDA margin improved from 19.4% to 20.1%. EBIT jumped 21.2% to €149.4m and the EBIT margin increased from 13.4% to 15.2%. Net income, however, collapsed from €95.6m to €5.5m. In the first six months, revenues also increased by 7% to €1.95bn and EBITDA improved 13.9% to €400.3m. The EBITDA margin increased from 14.5% to 16.7% and the EBIT margin from 13.3% to 15.6%. The company, however, reported a net loss of €50.9m compared to a net profit of €174.2m mainly due to the amortisation of the stake in Rocket Internet by around €254.9m.
A data-driven H1 raises expectations
05 Dec 16
The first reporting period under the new D4t4 Solutions brand saw the group (previously IS Solutions) deliver good growth, leaving it well on track to meet PBT forecasts in FY 2017, and we now increase FY 2018 forecasts. The business continues to flourish from its focus on data management and analytics, enabling its international blue-chip client base to gather and gain advantage from the mass of customer data available, utilising the leading-edge Celebrus solution. Industry analysts predict 12% CAGR for the BI & Analytics market through to 2020, and D4t4 is riding this wave of demand.
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
06 Dec 16
600 Group* (SIXH): Interim results: order book showing signs of improvement (CORP) | Real Good Food* (RGD): Commodity volatility impacts numbers (CORP) | Minds + Machines* (MMX): .vip goes live in China (CORP | Imaginatik* (IMTK): Interims (CORP) | iomart* (IOM): Quality business as usual (CORP) | Fulcrum (FCRM): Upgrades continue (BUY)
N+1 Singer - Morning Song 05-12-2016
05 Dec 16
RTHM is acquiring a profitable Canadian listed mobile specialist for equivalent of US$42.5m consideration in shares (88.235m). This helps adds to two growth vectors RTHM is targeting; (i) adds unique exclusive audience (10m unique) and (ii) Exclusive demand Yahoo and Facebook. The business has 15 premium and owned and operated apps which provide users with rewards for activity. The business is expected to deliver c$9m of EBITDA in FY18 including $2m of cost synergies. This equates to just 4.7x EV/EBITDA. This marks what we see the first step in RTHM activity to scale the business and deliver on margin potential (see our initiation notes). Our initial estimates for EPS revisions are very significant - for FY18 are 2.3 cents (currently 0.6) and for FY19 4.3 (currently 2.5). There is a call at 830 for investors and we will revise post this.
09 Dec 16
Ideagen* (IDEA): Acquisition of IPI Solutions (CORP) | Lombard Risk Management* (LRM): Atos deal improves routes to German market (CORP) | Photo-Me* (PHTM): Upgrade to FY forecasts (CORP) In other news… Frontier Developments* (FDEV): ED coming to Xbox and Planet Coaster update (CORP) | LiDCO* (LID): Analyst interview (CORP) | Rude Health: Analyst interview
N+1 Singer - Morning Song 09-12-2016
09 Dec 16
This morning’s AGM Statement confirms that trading in the first four months of the year to 31st October was in line with expectations. Revenue was slightly above the prior year period and cash collection has remained strong. The Group has reiterated its commitment to maintaining a progressive dividend policy. The statement is encouraging and we therefore leave our forecasts unchanged. We note the attractions of a 5% dividend yield and consider the shares inexpensive at 4.5x FY’17 EV/EBITDA.