MONTABAUR (dpa-AFX) - Internet group United Internet wants to push the stumbling 5G network rollout of its subsidiary 1&1 in the coming months. It is planning more money for this than last time. However, the investment volume is lower than Group CEO Ralph Dommermuth had targeted a year ago. Supply bottlenecks are to blame. In addition, 1&1 has been accusing its competitor Vodafone and its subsidiary Vantage Towers of obstructing network expansion for some time. Vodafone had already rejected the accusations in February.

Investors reacted huffily on the stock market on Thursday. The shares of United Internet, 1&1 and Ionos were down sharply. Shares in parent company United Internet were listed at the bottom of the index for mid-cap stocks, the MDax, down 4.6 percent.

1&1 accuses Vodafone of obstructing network expansion via its radio tower subsidiary Vantage Towers. Vantage also works for 1&1 and thus for a direct Vodafone competitor, but built far fewer antenna sites for the latter last year than had been commissioned. 1&1 announced that it would file a complaint with the Federal Cartel Office to have the matter investigated. As the designated fourth network operator in Germany, the United Internet subsidiary was supposed to meet the expansion obligation of 1,000 activated 5G stations by the end of 2022 - but only five were built, according to the latest information. In addition to rejecting the accusations, Vodafone had already announced in February that it had "noted 1&1's accusations with astonishment".

The investment volume of 400 million euros targeted by 1&1 a year ago, primarily for the mobile network, had then become only 250 million euros. For 2023, 1&1 is now planning an investment volume of 320 million euros. At the same time, the start-up costs for the construction of the 5G network are likely to amount to 120 million euros this year - more than twice as much as in 2022. In an initial reaction, Goldman Sachs analyst Yemi Falana viewed this as a negative surprise.

For the year as a whole, United Internet aims to increase sales to 6.2 billion euros in 2023, which would correspond to an increase of around 4.8 percent compared to the 2022 figure. In the past year, the Group achieved an equally strong increase to around EUR 5.9 billion. However, operating earnings before interest, taxes, depreciation and amortization are expected to remain at the previous year's level of around 1.27 billion euros as a result of increased investments, the company announced on Wednesday evening.

Two-thirds of revenue was generated by the mobile communications subsidiary 1&1, which grew by 1.4 percent to almost EUR 4 billion. Operating profit adjusted for special effects climbed 3.2 percent to 693.3 million euros. In 2023, revenue is expected to increase by around two percent, while day-to-day operations are likely to generate less profit.

Meanwhile, web hosting subsidiary Ionos has mixed feelings about the current year. Although revenue should increase by around a tenth and adjusted operating earnings (Ebitda) by at least ten percent. In 2022, however, the stock market newcomer still increased its sales by 17.2 percent to almost 1.3 billion euros. However, less of this was left over in operational terms: due to greater marketing expenditure to increase brand awareness and higher energy costs, adjusted operating profit (Ebitda) fell slightly to 345.6 million euros./ngu/he/mis/stk