AKTIONÄR-Tip Ionos can't be stopped: Forecast raised, share price at new record
The internet service provider Ionos is becoming more optimistic for the current year due to better business in the smaller AdTech division, which focuses on digital advertising and domain trading.
For 2025, the United Internet subsidiary expects earnings before interest, taxes, depreciation, and amortization (EBITDA), adjusted for special items, to grow by approximately 15 percent to approximately €520 million, thanks in part to the austerity measures, up from €510 million previously planned. In the first quarter, operating profit (adjusted EBITDA) increased by almost a quarter year-on-year to €131 million.
The company is now targeting revenue of around €400 million for the AdTech segment. The internet service provider recently aimed to exceed the previous year's figure of just over €312 million for this segment. The product change is also expected to have a positive impact on the segment's sustainable revenue and earnings development in the medium term, the company said. Group revenue climbed by around one-fifth to just over €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 forecast, revenue adjusted for currency effects is expected to continue to grow by approximately eight percent in 2025, compared to €1.25 billion in the previous year. The adjusted EBITDA margin is expected to increase from 32.9 percent to approximately 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.
Ionos' stock is benefiting not least from the new German government's plan to reduce Germany's digital dependence on other countries. Currently, the data of many German and European companies is still stored in the clouds of major US providers. Ionos is becoming one of the top beneficiaries by providing hosting and storage solutions.
Since hitting a temporary low of just over €20 in December 2024, the share price has recently made massive gains. In recent weeks, the stock has gained further momentum.
The raised outlook has been well-received by investors. The share price reached a new record high of €34.00 in early trading on the Tradegate platform. Investors who have held the stock since AKTIONÄR issued a buy recommendation in March of last year can now look forward to gains of more than 70 percent. The outlook remains good; let your profits run!
Contains material from dpa-AFX
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