KARLSRUHE/BERLIN (dpa-AFX) - Internet service provider Ionos is more optimistic about the current year thanks to improved business in its smaller AdTech division, which focuses on digital advertising and domain trading. Thanks in part to cost-cutting measures, the United Internet subsidiary announced on Monday that it expects earnings before interest, taxes, depreciation, and amortization (EBITDA), adjusted for special items, to grow by around 15 percent to approximately €520 million in 2025. The previous forecast was €510 million. In the first quarter, operating profit (adjusted EBITDA) rose by almost a quarter year-on-year to €131 million.
The company is now targeting revenue of around €400 million for the AdTech segment. Most recently, the Internet service provider wanted to exceed the previous year's figure of just over €312 million for this segment. The product changeover is also expected to have a positive impact on the segment's long-term revenue and earnings development, the company said. Consolidated revenue climbed by around a fifth to a good €446 million in the first three months to the end of March.
The company confirmed its forecast for its core business, the Digital Solutions & Cloud segment. According to this, revenue adjusted for currency effects is expected to continue to grow by around 8 percent in 2025, following 1.25 billion euros in the previous year. The adjusted EBITDA margin is expected to rise from 32.9 to around 35 percent. The division offers tools and applications for web hosting and e-commerce solutions, such as a website builder. Another focus is on modernizing customers' IT infrastructure. /mne/jha/
