United Internet cuts dividend to €0.50 per share

Shareholders of United Internet will receive €0.50 per share annually. This reduced dividend is part of a broader shift in capital allocation. Over the last three months, the share price has declined 6.42%. The company is currently executing a large-scale rollout and upgrade of its own fiber-optic and mobile (Open RAN/5G) infrastructure. This investment reduces dependency on third-party networks and lowers wholesale access costs. These cost reductions are expected to drive improved net margins and long-term earnings. A fair value estimate of €30.60 per share is based on the expectation that these margins expand and revenue progresses.