MONTABAUR (dpa-AFX) - Internet group United Internet posted higher earnings at the start of the year thanks to strong demand for web hosting and cloud products. Total sales for the months of January to March rose by 6.6 percent year-on-year to 1.54 billion euros, the parent company of the designated new telecommunications provider 1&1 announced in Montabaur on Wednesday. However, earnings before interest, taxes, depreciation and amortization fell by 4.6 percent to 315 million euros due to start-up costs for the 1&1 network. However, this still left United Internet with more profit than analysts had expected.

This was mainly due to business with small and medium-sized companies in the "Business Applications" segment, which showed increased interest in domains, webhosting or cloud storage. United Internet posted operating losses in its three other divisions.

By far the most important segment, however, remains the sale of fiber-optic and DSL connections via the 1&1 brand, which increased its sales by 4.6 percent and thus exceeded the billion euro mark. However, the operating profit was lower.

The subsidiary has so far "almost completely" missed its target for the roll-out of its own 5G network. As things stand, Group CEO Ralph Dommermuth counts 20 antenna sites - although he was supposed to have 1,000 by the turn of the year. He blames the construction partner Vantage Towers - but the radio tower operator and its parent company Vodafone reject the accusation./ngu/mis