Q2 2026 IONOS Group SE Earnings Call

August 6, 2026

Speaker #1: Investor Relations at IONOS. Let me walk you through today's agenda. Our CEO, Achim Weiss, will open with the business and strategy update, Patrik Heider, CFO of IONOS, will then cover the financial results, Q2 results, and full-year outlook.

Speaker #1: As well as the midterm targets. Both will be available for questions after the presentation. I would now like to hand it over to Achim.

Speaker #1: The floor is yours.

Speaker #2: Thank you, Stephan. Good morning, everyone. Let me give you the headline up front. The first half of 2026 was a record period for IONOS: customer growth reached an all-time high.

Speaker #2: We have successfully launched the AI phone receptionists across all markets. And with the newly introduced AI app and site builder, we are beginning a great vibe coding product to small and medium-sized businesses, built on our serving European cloud infrastructure.

Speaker #2: We are very pleased with the development so far, and we will walk you through what is driving this momentum. In the second quarter, we added 100,000 net new customers, bringing our total base to 6.91 million.

Speaker #2: This is a strong start in the first half year, and consistent with our expectations of further accelerating customer growth. The quality of new customers remains excellent.

Speaker #2: We continue to grow revenues across all relevant product lines, from web hosting to communications, back office, domain, and cloud. Looking at the second quarter, revenue growth was particularly strong in communications and back office, online marketing, and website builder.

Speaker #2: On the right-hand chart, you can see the rising revenue share of AI in web presence and productivity. We expect to already reach around 50% this year, further growing to 80% by 2028.

Speaker #2: AI is embedded across our entire product ecosystem. In web presence and productivity, we are integrating AI at every layer, as an embedded feature. In the onboarding experience, as a standalone product, from the AI phone receptionist to the new product AI app and site builder, which we will discuss in more detail shortly.

Speaker #2: In cloud solutions, we are delivering serving trusted European infrastructure for both SMBs and enterprise clients. Our portfolio extends from public and private cloud to specialized AI infrastructure, including the AI Model Hub, GPU service, and app integration such as N8N or OpenClaw on VPS.

Speaker #2: Let me give you an update on the AI phone receptionist, launched in Germany and the United States, at the beginning of this year. As a reminder, the product operates as a virtual employee for small businesses.

Speaker #2: It answers and manages calls in more than 20 languages, trained on the customer's own website and knowledge base, handling requests, bookings, capturing leads around the clock, and delivering structured call transcripts directly to the business owner.

Speaker #2: The early traction is significant, since launch we had generated around 15,000 subscriptions. APU for the AI phone receptionist has continued to expand, rising to around 70 euros per month, more than doubling from Q1.

Speaker #2: Customer satisfaction is high, with an end person above 50. The adoption curve and the customer feedback confirm we are addressing a real and underserved need.

Speaker #2: These results have been achieved with very limited marketing investment until June, where we finally started campaigns across all channels including TV. With the AI app and site builder launched in July, we take another step in expanding the momentum ecosystem, bringing the power of generative web application development to small and medium-sized businesses.

Speaker #2: The approach is straightforward: business owners describe what they need by text, by voice, or by uploading a screenshot and receiving a fully functional web application within minutes.

Speaker #2: Unlike traditional website builders, which produce static pages, our platform generates complete programs with connected databases and real business logic, requiring no programming skills, no agency involvement, and no additional contracts.

Speaker #2: The range of possible applications is broad: company websites, product configurators, appointment schedulers, internal dashboards, pricing calculators, just to name a few. All delivered on our own European GDPR-compliant cloud infrastructure.

Speaker #2: The new app builder is available in different plans, including a domain hosting and email. We are giving SMBs a faster, smarter, and more capable alternative to traditional website building tools integrated into our momentum platform.

Speaker #2: Take the example of a photovoltaic company on the left. Until now, the company had a self-built website that was static and had limited functionality.

Speaker #1: Let's 's go.

Operator: Ladies and gentlemen, welcome to the IONOS Group SE publication of the Q2 2026 Results Conference. I am Moira, the call's operator. I would like to remind you that all participants will be in listen-only mode, and the conference is being recorded. The presentation will be followed by a question and answer session. If you would like to ask a question from the webinar, you may click the Q&A button on the left side of your screen, and then click the raise your hand button. If you're connected via phone, please press star followed by one on your telephone keypad. For operator assistance, please press the Operator Assistance button on the bottom left side of your screen or star zero on your telephone keypad.

Speaker #2: Ladies and gentlemen, welcome to the IONOS Group SE publication of the Q2 2026 results conference. I am Moira DiCarras, collaborator. I would like to remind you that all participants who have been listening in remotely, and that the conference is being recorded.

Speaker #2: Using the app and site builder, the company was able to create a new website in no time at all, one that also includes a comprehensive calculator for photovoltaic systems, without writing a single line of code and without any additional software needed.

Speaker #2: The presentation will be followed by a question-and-answer session. During the webinar, you may click the Q&A button on the left side of your screen and then click the Raise Your Hand button.

Speaker #2: The range of use cases extends well beyond external communication, in customer-facing applications. The product works just as well for internal tools, from project and KPI tracking dashboards to internal workflows or intranet applications.

Speaker #2: If you are connected via phone, please press star followed by 1 on your telephone keypad. For operator assistance, please press the Operator Assistance button on the bottom left side of your screen or star 0 on your telephone keypad.

Speaker #2: The AI phone receptionist is the first product within a much broader platform, a fully integrated, modular ecosystem built around a central intelligence layer. The AI front desk, which combines the AI phone receptionist with the recently launched AI chat assistant, manages all inbound communication and feeds real-time data directly into the knowledge hub.

Speaker #2: At this time, it's my pleasure to hand over to Stephan Gramkow. Please go ahead.

Operator: At this time, it's my pleasure to hand over to Stephan Gramkow. Please go ahead.

Stephan Gramkow: Hey, good morning and welcome to IONOS Analyst Investor Call for H1 2026. My name is Stephan Gramkow, and I'm heading Investor Relations at IONOS. Let me walk you through today's agenda. Our CEO, Achim Weiss, will open with a business and strategy update. Patrik Heider, CFO of IONOS, will then cover the financial results, Q2 results, and full-year outlook, as well as the midterm targets. Both will be available for questions after the presentation. I would now like to hand it over to Achim. The floor is yours.

Speaker #1: Hey, good morning, and welcome to the IONOS Analyst & Investor Call for the first half of 2026. My name is Stephan Gramkow, and I'm heading Investor Relations at IONOS.

Speaker #1: Let me walk you through today's agenda. Our CEO, Achim Weiss, will open with the business and strategy update. Patrick Heider, CFO of IONOS, will then cover the financial results, Q2 results, and full-year outlook.

Speaker #2: The AI presence suite is the online identity for our customers. Websites, shops, web applications created by the AI app and site builder, directly connect to other tools.

Speaker #1: As well as the midterm targets. Both will be available for questions after the presentation. I would now like to hand it over to Achim.

Speaker #2: The AI marketing suite is the central hub for all marketing activities. It optimizes visibility and manages campaigns and online reputation automatically. The service layer provides additional tools and function to the system, including CRM and document management.

Speaker #1: The floor is yours.

Speaker #3: Thank you, Stephan. Good morning, everyone. Let me give you the headline up front: the first half of 2026 was a record period for IONOS.

Achim Weiss: Thank you, Stephan. Good morning, everyone. Let me give you the headline upfront. H1 2026 was a record period for IONOS. Customer growth reached an all-time high. We have successfully launched the AI Receptionist across all markets. With the newly introduced AI App & Site Builder, we are beginning a great low-coding product to small and medium-sized businesses built on our sovereign European cloud infrastructure. We are very pleased with the development so far, we will walk you through what is driving this momentum. In Q2, we added 100,000 net new customers, bringing our total base to 6.91 million. This is a strong start in H1 and consistent with our expectations of further accelerating customer growth. The quality of new customers remains excellent.

Speaker #3: Customer growth reached an all-time high. We have successfully launched the iPhone receptionists across all markets. With the newly introduced AI app and Site Builder, we are beginning a great vibe, coding product to small and medium-sized businesses built on our server in European cloud infrastructure.

Speaker #2: The knowledge hub is the foundation. It aggregates the customer's data, documents, and interaction history into a unified, continuously evolving intelligence base so that every tool in the suite operates with genuine contextual relevance.

Speaker #2: The compounding dynamic here is powerful: the more a business engages with the system, and the more apps of the momentum suite a customer is using, the more the hub learns.

Speaker #3: We are very pleased with the development so far, and we will walk you through what is driving this momentum. In the second quarter, we added 100,000 net new customers, bringing our total base to 6.91 million.

Speaker #2: IONOS momentum is not a collection of tools. It is an intelligent and agentic, self-learning platform, a central hub for managing all digital workflows. As we add more apps to the momentum suite, we, of course, expect APU to expand further.

Speaker #3: This is a strong start in the first half-year, and consistent with our expectations of further accelerating customer growth. The quality of new customers remains excellent.

Speaker #3: We continue to grow revenues across all relevant product lines, from web hosting to communications, back office, domain, and cloud. Looking at the second quarter, revenue growth was particularly strong in communications and back office, online marketing, and website builder.

Achim Weiss: We continue to grow revenues across all relevant product lines, from web hosting to communications, back office, domain, and cloud. Looking at Q2, revenue growth was particularly strong in communications and back office, online marketing, and website builder. On the right-hand chart, you can see the rising revenue share of AI in Web Presence & Productivity. We expect to already reach around 50% this year, further growing to 80% by 2028. AI is embedded across our entire product ecosystem. In Web Presence & Productivity, we are integrating AI at every layer as an embedded feature. In the onboarding experience as a standalone product, from the AI Receptionist to the new product AI App & Site Builder, which we will discuss in more detail shortly. In Cloud Solutions, we are delivering sovereign trusted European infrastructure for both SMBs and enterprise clients.

Speaker #2: At this point, let me turn our financials for the first half year and the second quarter. I do a handover to Patrick Heider.

Speaker #3: Thank you, Achim. Good morning, everyone. Let me walk you through our financial results for the first half and the second quarter 2026. In the first six months of the year, we generated 701 million in total revenue.

Speaker #3: On the right-hand chart, you can see the rising revenue share of AI in web presence and productivity. We expect to already reach around 50% this year, further growing to 80% by 2028.

Speaker #3: Web presence and productivity continues to serve as the backbone of our business. Contributing 83% of revenue at 581 million. Cloud solutions accounted for 15%, coming in at 102 million.

Speaker #3: AI is embedded across our entire product ecosystem. In web presence and productivity, we are integrating AI at every layer as an embedded feature. In the onboarding experience, as a standalone product, from the iPhone receptionist to the new product AI app and Site Builder, which is coming shortly.

Speaker #3: Adjusted EBITDA reached 245 million, which translates to a strong 35% margin. This performance provides us with a very solid foundation for the remainder of the year.

Speaker #3: In cloud solutions, we are delivering server and trusted European infrastructure for both SMBs and enterprise clients. Our portfolio extends from public and private cloud to specialized AI infrastructure, including the AI Model Hub, GPU service, and app integration such as N8N or OpenClaw on VPS.

Speaker #3: Let us look at the first half in more detail. Revenue grew by 6.9% year over year, or 8.2% on a constant currency basis. This keeps us firmly on the robust path we have established in recent years.

Achim Weiss: Our portfolio extends from public and private cloud to specialized AI infrastructure, including the AI Model Hub, GPU service, and app integrations such as n8n or OpenClaw on VPS. Let me give you an update on the AI Receptionist launched in Germany and the US at the beginning of this year. As a reminder, the product operates as a virtual employee for small businesses. It answers and manages calls in more than 20 languages, trained on a customer's own website and knowledge base, handling requests, bookings, capturing leads around the clock, and delivering structured call transcripts directly to the business owner. The early traction is significant. Since launch, we had generated around 15,000 subscriptions. ARPU for the AI Receptionist has continued to expand, rising to around EUR 70 per month, more than doubling from Q1. Customer satisfaction is high, with an NPS above 50.

Speaker #3: Adjusted EBITDA increased by 3.5%, bringing our H1 margin to 35%, compared to 36.1% in the prior year period. This light margin variance is simply driven by the timing of our marketing investments.

Speaker #3: Let me give you an update on the AI phone receptionist, launched in Germany and the United States at the beginning of this year. As a reminder, the product operates as a virtual employee for small businesses.

Speaker #3: As we have noted before, we align our marketing spend with peak customer acquisition windows. The marketing investments in the first half 2026 were intentionally more front-loaded, compared to the previous year.

Speaker #3: It answers and manages calls in more than 20 languages, trained on the customer's own website and knowledge base. It handles requests, bookings, captures leads around the clock, and delivers structured call transcripts directly to the business owner.

Speaker #3: Adjusting for higher marketing investments and FX effects adjusted EBITDA would have increased by 8.4%, with a corresponding adjusted EBITDA margin of 36.2%. On top of that, while we benefited from positive currency revaluation gains last year, currency revaluation was negative this year.

Speaker #3: The early traction is significant. Since launch, we have generated around 15,000 subscriptions. ARPU for the AI phone receptionist has continued to expand, rising to around €70 per month, more than doubling from Q1.

Speaker #3: The net effect was 11.5 million. Our underlying operational performance remains excellent, and we are fully confident in reaching our full-year targets. Turning to the second quarter, the picture is equally encouraging.

Speaker #3: Customer satisfaction is high, with an NPS above 50. The adoption curve and the customer feedback confirm we are addressing a real and underserved need.

Achim Weiss: The adoption curve and the customer feedback confirm we are addressing a real and underserved need. These results have been achieved with very limited marketing investment until June, where we finally started campaigns across all channels, including TV. The AI App & Site Builder launched in July. We take another step in expanding the Momentum ecosystem, bringing the power of generative web application development to small and medium-sized businesses. The approach is straightforward. Business owners describe what they need by text, by voice, or by uploading a screenshot and receive a fully functional web application within minutes. Unlike traditional website builders, which produce static pages, our platform generates complete programs with connected databases and real business logic, requiring no programming skills, no agency involvement, and no additional contracts. The range of possible applications is broad: company websites, product configurators, appointment schedulers, internal dashboards, pricing calculators, just to name a few.

Speaker #3: These results have been achieved with very limited marketing investment until June, when we finally started campaigns across all channels, including TV. The AI app and Site Builder, launched in July, we take another.

Speaker #3: Revenue grew by 8.1% year over year, or 8.8% in constant currency. Showing a clear acceleration in underlying momentum. This demonstrates that the prior year comparatives are normalizing as expected, and that our record customer quotes from 2025 are contributing more significantly as their initial promotional discounts roll off.

Speaker #3: This is a step in expanding the momentum ecosystem, bringing the power of generative web application development to small and medium-sized businesses. The approach is straightforward: business owners describe what they need by text, by voice, or by uploading a screenshot, and receive a fully functional web application within minutes.

Speaker #3: On profitability Q2, adjusted EBITDA reached 127 million, representing a 36% margin. As already mentioned, the H1 marketing spend was front-loaded by design and is fully built into our full-year plan.

Speaker #3: Unlike traditional website builders, which produce static pages, our platform generates complete programs with connected databases and real business logic, requiring no programming skills, no agency involvement, and no additional contracts.

Speaker #3: It does not change our course. You can already see a sequential margin expansion from 33.9% in the first quarter to 36% in the second quarter.

Speaker #3: The range of possible applications is broad: company websites, product configurators, appointment schedulers, internal dashboards, pricing calculators—just to name a few. All are delivered on our own European, GDPR-compliant cloud infrastructure.

Speaker #3: In short, Q2 delivered strong revenue growth, accelerating constant currency momentum, and expanding margins compared to the first quarter. We are well positioned for the second half.

Achim Weiss: All delivered on our own European GDPR compliant cloud infrastructure. The new App Builder is available in different plans, including a domain hosting an email. We are giving SMBs a faster, smarter, and more capable alternative to traditional website building tools integrated into our Momentum platform. Take the example of a photovoltaic company on the left. Until now, the company had a self-built website that was static and had limited functionality. Using the App and Site Builder, the company was able to create a new website in no time at all, one that also includes a comprehensive calculator for photovoltaic systems without writing a single line of code and without any additional software needed. The range of use cases extends well beyond external communication and customer-facing applications. The product works just as well for internal tools from project and KPI tracking dashboards to internal workflows or intranet applications.

Speaker #3: Let's now look at operational development across our two segments, in Q2. In web presence and productivity, revenue rose 7.3% year over year, or 8.1% excluding currency effects.

Speaker #3: The new app builder is available in different plans, including domain hosting and email. We are giving SMBs a faster, smarter, and more capable alternative to traditional website building tools, integrated into our Momentum platform.

Speaker #3: This steady performance continues to be driven by subscriber expansion alongside effective cross-selling and upselling across our product portfolio. In cloud solutions, revenue expanded by an impressive 19.5%, or 20.4% on a constant currency basis.

Speaker #3: Take the example of a photovoltaic company on the left. Until now, the company had a self-built website that was static and had limited functionality.

Speaker #3: Using the app and Site Builder, the company was able to create a new website in no time at all—one that also includes a comprehensive calculator for photovoltaic systems—without writing a single line of code and without any additional software needed.

Speaker #3: I'll share more details on this segment shortly. External revenue growth reached 9.1% year over year, which is a particularly strong result on an external revenue reported basis.

Speaker #3: The range of use cases extends well beyond external communication. In customer-facing applications, the product works just as well for internal tools, from project and KPI tracking dashboards to internal workflows or intranet applications.

Speaker #3: Meanwhile, intercompany hosting services to United Internet Group companies contributed 8.5 million in Q2, down from 10.9 million last year, reflecting the step-down we had planned.

Speaker #3: The iPhone Receptionist is the first product within a much broader platform—a fully integrated, modular ecosystem built around a central intelligence layer. The AI front desk, which combines the iPhone Receptionist with the recently launched AI chat assistant, manages all inbound communication and feeds real-time data directly into the knowledge hub.

Achim Weiss: The AI Phone Receptionist is the first product within a much broader platform, a fully integrated modular ecosystem built around a central intelligence layer. The AI Front Desk, which combines the AI Phone Receptionist with the recently launched AI Chat Assistant, manages all inbound communication and feeds real-time data directly into the Knowledge Hub. The AI Presence Suite is the online identity for our customers. Websites, shops, web applications created by the AI App & Site Builder directly connect to other tools. The AI Marketing Suite is the central hub for all marketing activities. It optimizes visibility, manages campaigns and online reputation automatically. The Service Layer provides additional tools and functions to the system, including CRM and document management. The Knowledge Hub is the foundation.

Speaker #3: Regarding our operational performance, our total customer base now stands at 6.91 million as of Q2 2026. With 100,000 net new customers added in the second quarter.

Speaker #3: APU increased to 60.70 euros per month, up from 60.30 euros a year ago. This expansion is reflected both strong portfolio upselling and the progressive maturation of our 2025 quotes, as they transitioned to standard pricing.

Speaker #3: The AI Presence Suite is the online identity for our customers. Websites, shops, and web applications created by the AI app and Site Builder directly connect to other tools.

Speaker #3: This dynamic is unfolding precisely as planned, generating high-quality, durable revenue streams. At the same time, monthly churn remains stable at approximately 1%. The best in class retention rate underlines the stickiness of our platform and the strength of our customer relationships.

Speaker #3: The AI Marketing Suite is the central hub for all marketing activities. It optimizes visibility and manages campaigns and online reputation automatically. The service layer provides additional tools and functions to the system, including CRM and document management.

Speaker #3: Looking forward, the combination of growing customer numbers, rising APU, and a low churn creates a powerful compounding engine for the rest of 2026 and beyond.

Speaker #3: The Knowledge Hub is the foundation. It aggregates the customer's data, documents, and interaction history into a unified, continuously evolving intelligence base, so that every tool in the suite operates with genuine contextual relevance.

Achim Weiss: It aggregates a customer's data, documents, and interaction history into a unified, continuously evolving intelligence base, so that every tool in the suite operates with genuine contextual relevance. The compounding dynamic here is powerful. The more a business engages with the system, and the more apps of the Momentum suite a customer is using, the more the hub learns. IONOS Momentum is not a collection of tools. It is an intelligent and agentic self-learning platform, a central hub for managing all digital workflows. As we add more apps to the Momentum suite, we of course expect ARPU to expand further. At this point, let me turn our financials for the H1 and the Q2, I do a handover to Patrik Heider.

Speaker #3: Moving to cloud solutions, revenue in Q2 surged by 19.5% year over year, or 20.4% FX adjusted, making one of the strongest results in our history.

Speaker #3: The compounding dynamic here is powerful. The more a business engages with the system, and the more apps of the Momentum Suite a customer is using, the more the Hub learns.

Speaker #3: IONOS Momentum is not a collection of tools; it is an intelligent and agentic self-learning platform—a central hub for managing all digital workflows. As we add more apps to the Momentum suite, we of course expect APU to expand further.

Speaker #3: Total CapEx in H1 stood at 52.3 million, representing a CapEx ratio of 7.5% of revenue, compared to 3.5% last year. The main driver was gross CapEx, with around 45 million compared to 20 million in the previous year.

Speaker #3: At this point, let me turn to our financials for the first half year and the second quarter. I will hand over to Patrick Eider.

Speaker #3: In prior years, our investments were weighted towards the second half of the year, with a particular concentration in the fourth quarter. This year, that pattern has shifted.

Speaker #1: Thank you, Achim. Good morning, everyone. Let me walk you through our financial results for the first half and the second quarter of 2026. In the first six months of the year, we generated €701 million in total revenue.

Patrik Heider: Thank you, Achim. Good morning, everyone. Let me walk you through our financial results for the H1 and the Q2 2026. In the first six months of the year, we generated EUR 701 million in total revenue. Web Presence & Productivity continues to serve as the backbone of our business, contributing 83% of revenue at EUR 581 million. Cloud Solutions accounted for 15%, coming in at EUR 102 million. Adjusted EBITDA reached EUR 245 million, which translates to a strong 35% margin. This performance provides us with a very solid foundation for the remainder of the year. Let us look at the H1 in more detail. Revenue grew by 6.9% year over year, or 8.2% on a constant currency basis. This keeps us firmly on the robust growth path we have established in recent years.

Speaker #3: Anticipating rising hardware prices, we made a deliberate decision to procure early and proactively securing favorable terms ahead of the market. As a result, a significant share of this year's CapEx has already been incurred in the first half.

Speaker #1: Web Presence and Productivity continues to serve as the backbone of our business, contributing 83% of revenue at €581 million. Cloud Solutions accounted for 15%, coming in at €102 million.

Speaker #3: We reaffirm our full-year CapEx target of 75 million to 85 million, returning us to roughly 6% of revenue. While we continue to manage recent hardware prices increases through internal mitigations, we expect full-year CapEx to land near the upper end of that range.

Speaker #1: Adjusted EBITDA reached €245 million, which translates to a strong 35% margin. This performance provides us with a very solid foundation for the remainder of the year.

Speaker #3: Let me now walk you through the cash flow EBITDA of 245 million, we take out the adjustments, like non-recovering expenses for the billing carve-out and the expenses for the long-term incentive program, to get to reported EBITDA.

Speaker #1: Let us look at the first half in more detail. Revenue grew by 6.9% year over year, or 8.2% on a constant currency basis. This keeps us firmly on the robust path we have established in recent years.

Speaker #1: Adjusted EBITDA increased by 3.5%, bringing our H1 margin to 35%, compared to 36.1% in the prior-year period. This slight margin variance is simply driven by the timing of our marketing investments.

Patrik Heider: Adjusted EBITDA increased by 3.5%, bringing our H1 margin to 35% compared to 36.1% in the prior year period. This slight margin variance is simply driven by the timing of our marketing investments. As we have noted before, we align our marketing spend with peak customer acquisition windows. The marketing investments in H1 2026 were intentionally more front-loaded compared to the previous year. Adjusting for higher marketing investments and FX effects, adjusted EBITDA would have increased by 8.4%, with a corresponding adjusted EBITDA margin of 36.2%. While we benefited from positive currency revaluation gains last year, currency revaluation was negative this year. The net effect was EUR 11.5 million. Our underlying operational performance remains excellent, and we are fully confident in reaching our full-year targets. Turning to Q2, the picture is equally encouraging.

Speaker #3: After taking into account 52 million for CapEx and deducting taxes, working capital movements, and lease payments, we generate free cash flow after leases of 126 million.

Speaker #3: This compares to 668 million in the prior year period. The difference is mainly driven by three factors: first, H1 2025 included 32 million of higher ad-tech EBITDA; second, CapEx this year was more H1-focused compared to the backloaded schedule in 2025; and third, as mentioned, our marketing spend was more front-loaded into H1.

Speaker #1: As we have noted before, we align our marketing spend with peak customer acquisition windows. The marketing investments in the first half of 2026 were intentionally more front-loaded compared to the previous year.

Speaker #1: Adjusting for higher marketing investments and FX effects, adjusted EBITDA would have increased by 8.4%, with a corresponding adjusted EBITDA margin of 36.2%. On top of that, while we benefited from positive currency revaluation gains last year, currency revaluation was negative this year.

Speaker #3: Year to date, we also have repurchased 84 million of our own shares. Overall, our EBITDA to cash conversion remains exceptionally strong, underscoring the predictability of our cash flow model.

Speaker #1: The net effect was €11.5 million. Our underlying operational performance remains excellent, and we are fully confident in reaching our full-year targets. Turning to the second quarter.

Speaker #3: Our cash generation translates directly into deleveraging. As of June 30, 2026, net debt stood at 676 million, comprising external bank debt, less cash, and receivables from United Internet.

Speaker #1: The picture is equally encouraging. Revenue grew by 8.1% year over year, or 8.8% in constant currency, showing a clear acceleration in underlying momentum. This demonstrates that the prior-year comparatives are normalizing as expected, and that our record customer cohorts from 2025 are contributing more significantly as their initial promotional discounts roll off.

Patrik Heider: Revenue grew by 8.1% year over year or 8.8% in constant currency, showing a clear acceleration in underlying momentum. This demonstrates that the prior year comparatives are normalizing as expected, and that our record customer cohorts from 2025 are contributing more significantly as their initial promotional discounts roll off. Q2 adjusted EBITDA reached EUR 127 million, representing a 36% margin. As already mentioned, the H1 marketing spend was front-loaded by design and is fully built into our full-year plan. It does not change our course. You can already see a sequential margin expansion from 33.9% in Q1 to 36% in Q2. Q2 delivered strong revenue growth, accelerating constant currency momentum and expanding margins compared to Q1. We are well-positioned for H2. Let's now look at operational development across our two segments in Q2.

Speaker #3: Our fixed interest rate remains stable at 4.7%, with our term loan maturing at year-end preparations for refinancing already well underway. Our leverage ratios stand at approximately 1.4 times net debt to adjusted EBITDA.

Speaker #3: This is slightly up from Q1, primarily due to our share buyback program, as we expect leverage to step down moving forward. This low leverage and strong cash flow give us a substantial balance sheet stability and financial flexibility.

Speaker #1: On profitability, Q2 adjusted EBITDA reached €127 million, representing a 36% margin. As already mentioned, the H1 marketing spend was front-loaded by design and is fully built into our full-year plan.

Speaker #3: Before discussing our outlook, let me give you a quick update on the sale of ad-tech business. Since classifying it as a discontinued operation in Q3 2025, its performance has been excluded from our core revenue and EBITDA.

Speaker #1: It does not change our course. You can already see a sequential margin expansion from 33.9% in the first quarter to 36% in the second quarter.

Speaker #1: In short, Q2 delivered strong revenue growth, accelerating constant currency momentum, and expanding margins compared to the first quarter. We are well positioned for the second half.

Speaker #3: While buyer interest has been strong, the broader digital advertising market has not seen a sustained recovery. Alongside the sale process, we are running a restructuring plan to align costs with current revenue levels.

Speaker #1: Let's now look at operational development across our two segments in Q2. In Web Presence and Productivity, revenue rose 7.3% year over year, or 8.1% excluding currency effects.

Speaker #3: Regardless of market trends, we still expect the transaction during the second half of the year. We are very happy with the performance in the first half year.

Patrik Heider: In Web Presence & Productivity, revenue rose 7.3% year over year or 8.1% excluding currency effects. This steady performance continues to be driven by subscriber expansion alongside effective cross-selling and upselling across our product portfolio. In Cloud Solutions, revenue expanded by an impressive 19.5% or 20.4% on a constant currency basis. I'll share more details on this segment shortly. External revenue growth reached 9.1% year over year, which is a particularly strong result on an external revenue reported basis. Intercompany hosting services to United Internet group companies contributed EUR 8.5 million in Q2, down from EUR 10.9 million last year, reflecting the step down we had planned. Our total customer base now stands at 6.91 million as of Q2 2026, with 100,000 net new customers added in Q2. ARPU-

Speaker #3: For the remaining course of 2026, we expect the positive performance to continue. Therefore, we are refining our guidance accordingly. Currency adjusted revenue growth is now expected at around 8%, which was previously expected at 7%.

Speaker #1: This steady performance continues to be driven by subscriber expansion, alongside effective cross-selling and upselling across our product portfolio. In cloud solutions, revenue expanded by an impressive 19.5%, or 20.4% on a constant currency basis.

Speaker #3: Revenue excluding intercompany revenue is now expected to grow approximately 9%, which was previously expected at 8%. Within that, web presence and productivity is projected to grow around 8%, up from 7% to 8% before.

Speaker #1: I'll share more details on this segment shortly. External revenue growth reached 9.1% year over year, which is a particularly strong result on an external revenue reported basis.

Speaker #3: Cloud solutions is now expected to accelerate to around 10% to 15%, compared to our previous expectation of around 10% growth. Intercompany revenues are expected between 30% to 40 million euro, which is unchanged.

Speaker #1: Meanwhile, intercompany hosting services to United Internet Group companies contributed €8.5 million in Q2, down from €10.9 million last year, reflecting the step-down we had planned.

Speaker #3: As well, we will continue to invest in growth initiatives, adjusted EBITDA is still expected to reach 530 million, with the adjusted EBITDA margin projected at 37% to 38%.

Speaker #1: Regarding our operational performance, our total customer base now stands at 6.91 million as of Q2 2026. With 100,000 net new customers added in the second quarter.

Speaker #3: Adjusted EBITDA reached 245 million in the first half year, with a margin of 35%, which is well on track. Finally, we are reaffirming our midterm targets.

Speaker #3: We are aiming for double-digit growth in group revenues above 10%, supporting by high single-digit growth in web presence and productivity, and 20% growth in cloud solutions.

Speaker #3: Regarding profitability, we are targeting an adjusted EBITDA margin of 40% in the near to midterm. This will be driven by integrating AI-driven synergies directly into our operations.

Speaker #3: This approach ensures sustainable margin improvement while allowing us to reinvest in future growth opportunities. We will present an updated midterm guidance alongside a clear capital allocation strategy by the end of this year, early next year.

Speaker #3: That concludes our formal presentation, and Achim and I, we are now happy to open the floor to your questions. Thank you.

Speaker #1: We will now begin the question and answer session. Anyone who wishes to ask a question from the webinar may click the Q&A button on the left side of the screen and then click to raise your hand button.

Speaker #1: If you're connected via phone, please press * followed by 1 on your telephone keypad. You will hear a tone to confirm that you have entered the queue.

Speaker #1: If you wish to remove yourself from the question queue, you may press the lower your hand button from the webinar or press * and 2 on your telephone.

Speaker #1: Anyone who has a question may queue up now. The first question comes from the line of George Webb from Morgan Stanley. Please go ahead.

Speaker #2: Yeah, hi. Morning, Achim and Patrick, and well done on the good half year. A few questions to kick off, please. Firstly, just on the guidance and coming back to what you said at the end there, Patrick, noting that revenue growth upgrade that you've held the adjusted EBITDA guidance, what are the kind of dynamics you're doing around investments?

Speaker #2: So obviously, that means that better top line hasn't dropped into an EBITDA upgrade. Secondly, on the AI receptionist, you're talking to 15,000, I think, total services.

Speaker #2: Since launch, I presume that's equivalent to orders. To the extent you have the data, could you maybe isolate how many repeat paying customers you have?

Speaker #2: So those that have been live with an AI receptionist for multiple paying months in a row? And then lastly, a bigger picture one on the EU's AI gigafactories initiative.

Speaker #2: Now that the formal call for tenders has been launched, and giving that programs evolving scope and current funding structure, I'd appreciate your thoughts on how you think about that project and its attractiveness to potentially participate in.

Speaker #2: Thank you.

Speaker #3: So first of all, thank you very much. I am starting George with the first question for the guidance. As we do see great opportunities and momentum in top line, we do want to reinvest also obviously into our future beyond 2026.

Speaker #3: That means we want to really invest further into marketing and also into the AI ecosystem we are building up. And I did also mention the 2027 outlook a bit, because here definitely the midterm guidance is nearer than we think.

Speaker #3: So the midterm guidance will be adjusted by the year end and also in the beginning of next year. That said, the margin will definitely be very close around the 40% already next year, because we are driving AI synergies.

Speaker #3: So we want to focus on top line as we always said this year. And this is why we want to invest this year further into the AI ecosystem and also marketing spend.

Speaker #3: And maybe. Yeah, the 15,000 orders we have, yeah, these are real subscriptions. The phone reception is 15,000 real subscriptions, usually they have four weeks, one month free in the beginning as like a product campaign offering.

Speaker #3: Which is, by the way, a much lower than what we usually have in campaigns for web hosting, for other products. So this is great.

Speaker #3: And these are really real customers, paying customers, real subscriptions. But the AI gigafactory, yes, you'd completely right. After many, many delays, the European Union finally came out with the tender last week, and honestly, we are just filtering through it and making up our mind right now.

Speaker #3: Just dissecting everything and see what our options are. We have a lot of different options, a lot of different possibilities. But it's a bit too early for this call to tell you what our plans are, because like you know, it's just happened last week.

Speaker #2: Yeah, that's okay. Thank you. Yeah, clear. Thank you. Can I just come back on the AI receptionist? So if I interpret that 15,000 subscriptions, is it would that be like the run rate at the end of the first half that you had 15,000 customers live with an AI receptionist, or is it a different kind of metric?

Speaker #3: Well, it's just an accumulated customers from the beginning of the year, but like I said, the real marketing actually started last month. Until then it was just on the web page, of course, and we did some online marketing, some performance marketing, like on a small scale.

Speaker #3: And now the real marketing started. And so we expect a high monthly net build or net customer growth in that section, because we really see that has time, like we just added the chat agent not just phones, it's going to be a multi-channel front desk agent, phone receptionist will probably not be the right word in some months anymore, but it's your front desk.

Speaker #3: Yeah. And taking calls and answering calls and doing support for you and order entries and a steady stream of new customers every month.

Speaker #2: That's clear. Thank you very much.

Speaker #3: Thank you, George.

Speaker #1: Next question comes from Ines Mao from BNP Paribas. Please go ahead.

Speaker #4: Hi, this is Ines from BNP Paribas. I have some questions about your cloud business. Could you give us more color on the cloud demand trends?

Speaker #4: If we set aside the contract from ITZ Boons and typically private cloud has been growing very nicely, do you expect this to sustain? And is demand mostly coming from government bodies or SMBs?

Speaker #4: The second question is about your data center capacity. Do you think it's enough as of today if cloud growth continues to exceed expectations, setting aside ITZ Boons contract?

Speaker #4: And just one final question on the cloud business again. As you push for more AI infrastructure products like model fine-tuning, for example, do you have the capacity in terms of GPU servers to meet this demand or not, or will it require more CAPEX fine-tuning?

Speaker #4: Thank you.

Speaker #3: Yeah, I mean, the cloud growth is really across the board. We have a very broad range of customers. And a lot comes from small and medium size, which is actually our preferred target group.

Speaker #3: 30 companies or something. We have a lot of customers on the public sector So we're as well. And you said excluding ITZ, but that's fair.

Speaker #3: ITZ and there's no data center capacity needs for the ITZ anyways, because it's their data center, so we can't take them aside completely for the questions you had.

Speaker #3: So the growth is really in the right spot for us in small, medium to mid-sized companies. That's a big portion. And then if you talk public sector, it's a lot of smaller communities like federal contracts mostly.

Speaker #3: It's across all of Europe in different public sectors, smaller entities. So that's a very nice growth there. Data center capacity, we don't really have an issue because most of the cloud is actually co-located data centers.

Speaker #3: And there's still room to grow. So we have already for the next foreseeable future, we have enough room and we can always extend. We just rented a new site in Frankfurt beginning of the year.

Speaker #3: So I think it was in April. So that should be fine. The model hub, yeah, model hub is expanding and hardware and capacity as we need it.

Speaker #3: We scaled this with the customer demand. It's not like you don't get hardware. It's a little more expensive these days, but the GPU cards and stuff are available to us.

Speaker #3: And we have contracts with NVIDIA and everything. So there is no worry in being able to deliver.

Speaker #2: And maybe just from my perspective to support what Achim said, Ines give you a rough idea about growth without ITZ Boons, which would have been amazing already with over 12% in a half year one.

Speaker #2: And that gives you a signal that we are becoming more and more independent from ITZ Boons as well. And the underlying performance in that segment is great.

Speaker #4: Thank you.

Speaker #1: Next question comes from Stephane Beyazian from Adobe HF. Please go ahead. Mr. Stephane, your line is open. We cannot hear you. Maybe your line is on mute.

Speaker #1: Next question comes from Victor Cheng from Bank of America. Please go ahead.

Speaker #5: Hi, can you hear me? Can you hear me?

Speaker #1: Yes, we can hear you. You can proceed.

Speaker #5: Hi. First of all, taking my questions, maybe two from my side. I guess first of all, you talked about CAPEX pulling forward from Q4 to H1 now, but if we think about the cloud growth, putting aside ITZ Boons, if cloud growth continues to be a bit stronger than expected, should we expect more CAPEX spend long-term above the 6%?

Speaker #5: And then second question, just around the cloud solutions, sorry, just around the WPMP, do you consider growth still very strong in Q2, 100K, but sequentially down in Q1?

Speaker #5: Can you give us maybe a bit more color around the trends there? The revenue mix, what is doing a bit better or maybe less good versus Q1 and Q2, please?

Speaker #3: Well, I'll start with CAPEX, I guess, and you can take over the other. So for CAPEX for this year, we don't see any issue because we have had beginning of the year when it was foreseeable that the hardware prices are rising a lot.

Speaker #3: We already did buy actually what we need for this year. So there would be no surprise in the CAPEX budget for this year. You asked us about long-term.

Speaker #3: I mean, of course, with a high growth in the cloud and with the hardware prices more or the hardware more expensive than the previous year or this year when we had the already supply contracts, we have to expect the CAPEX going up a little bit, but always in demand of or always in relation to demand, we have.

Speaker #3: And we can steer it as we can say, okay, we want to have like do we want to sell more of dedicated service, for example, which is not cloud business, but also CAPEX.

Speaker #3: And where do we want to invest the CAPEX? Probably rather in cloud virtual servers than rather in dedicated servers, for example. So we have a little we have some means of steering where we invest the CAPEX most effectively and efficiently.

Speaker #3: But I would expect we'll see this when we do the budget for next year. I'll expect that with the same cloud growth, we will have a little higher CAPEX next year.

Speaker #1: Welcome to Quartz Call. Please enter your passcode, followed by the pound key, or *0 for an operator. Quartz Call follows the EU General Data Protection Regulation.

Speaker #2: And for the VPNP segment, it's interesting to see that, and that's good news, that all products line are equally growing. Definitely a focus on communications and back office as you remember, our discussions as well, that we have also started here a partnership with Nextcloud, bringing a sovereign euro office solution.

Speaker #2: Your passcode is not valid. Please enter your PIN, followed by the pound key. Your passcode has been confirmed. Please wait while you are joined to the conference.

Speaker #2: Then also we have in online marketing and the website builder, obviously, is really developing nicely. As a reminder, all AI momentum revenues are not in the VPNP performance at the moment, build it up, and not neither in the guidance.

Speaker #2: So that will be on top. And that means also what Achim mentioned in the first slide, that the AI embedding of features into the VPNP segment is also tracking off.

Speaker #3: To meet this demand or not, or will it require more CAPEX funding? Thank you.

Speaker #2: So that will be additional growth momentum also moving to 2027. And that we can report about the VPNP very clearly.

Speaker #4: Yeah, first, I mean, the cloud—the cloud route is really across the board. We have a very broad range of customers, and a lot comes from small and medium-sized, which is actually our preferred target group, yeah.

Speaker #5: Thank you. Maybe just follow up on the first question. I guess you're just thinking about your midterm guidance. Obviously, you're already acceleration to 20% for cloud solutions.

Speaker #4: So we're not hunting for the large DAX 30 companies or something. We have a lot of customers in the public sector as well, and you said excluding ITZ, but that's—that's fair.

Speaker #5: I guess just assuming that you would get there in the medium term, does that 6% still hold or you, I guess you allude it to the fact that it might edge up a bit more?

Speaker #4: ITZ, and there's no data center capacity needs for the ATZ anyway, because it's their data center, so we can't take them aside completely for the questions you had.

Speaker #4: So the growth is really in the right spot for us, in small, medium, to mid-sized companies. That's a big portion. And then, if you talk public sector, it's a lot of smaller communities, and so it's not like federal contracts mostly.

Speaker #3: Yeah, I think that's what I tried to say. We have to expect I mean, if you want to keep the growth in the cloud as it is, even if you shift a little bit of the product, mix I think it's fair to expect a little more on CAPEX.

Speaker #4: It's—you know, across all of Europe, in different public sectors, smaller entities. So that's very nice growth there. Data center capacity, we don't really have an issue because most of the cloud is actually co-located data centers.

Speaker #3: Everybody knows prices are crazy right now for hardware. Like I said, for this year, it doesn't matter because we're already we have what we need or we have the contracts at least for the prices we need.

Speaker #3: But driving the growth or even accelerating the growth next year, plus the higher hardware prices for all things which are connected to RAM, will increase the CAPEX.

Speaker #4: And there's still room to grow. So we have— we have already, for the next foreseeable future, enough room, and we can always extend.

Speaker #3: That's fair to say. But we haven't done the math yet for next year. I wouldn't expect it it's not going to be crazy because like we have some means of steering.

Speaker #4: We just rented a new site in Frankfurt at the beginning of the year, so I think it was in April. So that should be fine.

Speaker #3: Efficiency standpoint, we have possibilities to, for example, do a shift from rather a lower margin or lower growth products like the dedicated servers, a very old product line, taking the CAPEX from this line going to rather to the cloud business, which is much more for the future proof.

Speaker #4: The model hub—yeah, the model hub is expanding, and we're adding hardware and capacity as we need it. We scale this with customer demand. It's not like you can't get hardware; it's just a little more expensive these days, but the GPU cards and everything are available to us, and we have contracts with NVIDIA and everything, so there's no worry about being able to deliver.

Speaker #3: So there's some possibilities, but we haven't run the numbers yet. We're just starting now soon with the budget planning for next year and all.

Speaker #6: And maybe just from my perspective, to support what Achim said—Ines gave you a rough idea about growth without ITZ Bund, which would have been amazing already, with over 12% in half-year one.

Speaker #3: We can report a little more in the next session.

Speaker #5: Got it. Thank you.

Speaker #2: Thank you, Victor.

Speaker #1: As a reminder, for questions from the webinar, please click the Q&A button on the left side of the screen and then click the raise your hand button.

Speaker #6: And that gives you a signal that we are becoming more and more independent from ITZ Bund as well, and the underlying performance in that segment is great.

Speaker #1: If you're connected via phone, please press star followed by one on your telephone keypad. Next question comes from Stephan Beyazian from Adobe HF. Please go ahead.

Speaker #3: Thank you.

Speaker #2: Next question comes from Stephan Beyazian from Adobe HF. Please go ahead. Mr. Stephan, your line is open. We cannot hear you. Maybe your line is on mute.

Speaker #5: Yes, hello. I hope you can hear me now. Yes.

Speaker #3: Yes. Good morning.

Speaker #5: Sorry about that. I was just wondering whether we should be expecting a little bit of a slowdown in your commercial trends in the second half of this year because you've done so great in the first half.

Speaker #2: Next question comes from Victor Cheng from Bank of America. Please go ahead.

Speaker #7: Hi, can you hear me? Can you hear me?

Speaker #5: And even if you're focusing on top line, perhaps you may want to re-accelerate in order to meet the guidance, the APDA growth in the second half.

Speaker #2: Yes, we can hear you. You can proceed.

Speaker #7: Hi. First of all, taking my questions—maybe two from my side. I guess, first of all, you talked about CapEx pulling forward from Q4 to H1 now, but if we think about the cloud growth, you know, putting aside ITZ Bund, if cloud growth continues to be a bit stronger than expected, should we expect more CapEx spend long-term above the 6%?

Speaker #5: So question is, should we expect a little bit of a slowdown in the net additions in the second half of this year? And my second question is, whether you could put a little more color around the ad tech situation.

Speaker #5: Thank you.

Speaker #2: So in general, what we said, we had a tremendous good Q1, which was extraordinary, with 180,000 net new ads. We are now moving to a great Q2 with 100,000 additional.

Speaker #7: And then second question, just around the cloud solutions—sorry, just around the WPMP. Do you consider growth still very strong in Q2, 100K, but sequentially down from Q1?

Speaker #2: What we always said, you can't multiply the Q1 times four, but definitely a range of 450, which would be a record year, is definitely realistic.

Speaker #7: Can you give us maybe a bit more color around the trends there? The revenue mix—what is doing a bit better, or maybe less good versus Q1 and Q2, please?

Speaker #2: And that means we don't see a slowdown. And the second question would be for ad tech, as I already mentioned in my short speech and presentation, we are doing a restructuring program at the moment.

Speaker #2: So we're adapting the cost base in relation to revenue. The overall, let's say, situation in that segment is as for all the competition and also for our business, not recovering.

Speaker #4: Well, I'll start with CAPEX, I guess, and you can take over, yeah. So for CAPEX for this year, we don't see any issue because we have, you know, we had beginning of the year when it was foreseeable that the hardware prices are rising a lot.

Speaker #4: We already did buy, actually, what we need for this year. So, there would be no surprise in the CAPEX budget for this year. You also asked about long-term.

Speaker #2: And this is why we are in parallel discussion with potential buyers doing the restructuring, and we expect in second half year a message about that business.

Speaker #4: I mean, of course, with a high growth in the cloud and with, you know, the hardware prices more— or the hardware more expensive than the previous year or this year when we had the already supply contracts, we have to expect the CAPEX going up a little bit, but always in demand of— or always in relation to demand, we have.

Speaker #5: His journey changed that you could actually keep the business if you're not finding let's say the right buyer at the right price.

Speaker #2: Absolutely. All options are on the table and needs to be considered. That's our duty. And this is why we don't want to be in a fast, but we want to be in a high-quality decision.

Speaker #2: This is why we're acting into H2.

Speaker #4: And we can steer this. We can say, okay, we want to have like, you know, do we want to sell more of dedicated service, for example, which is not cloud business, but also CAPEX, and where do we want to invest the CAPEX?

Speaker #5: And can you give us just an idea of the results of ad tech in the first half in terms of APDA, in terms of top line momentum?

Speaker #4: Probably rather in, you know, cloud virtual servers than rather in dedicated servers, for example. So we have a little— we have some means of steering where we invest the CAPEX most effectively and efficiently, but I would expect we'll see this when we do the budget for next year.

Speaker #2: As you already saw, I mean, the value contribution from an EBITDA perspective in 2025 was 31 million. This tremendously was depending on revenue. The revenue came down in Q4 already.

Speaker #2: So we expect that business in low single-digit EBITDA contribution over the year. And this is why we need to work on the cost base.

Speaker #4: I would expect that, with the same cloud growth, we will have slightly higher CAPEX next year.

Speaker #2: And that's said, you can imagine with a 10 to 11 percentage EBITDA margin business where the revenue stands about. And that's for the entire segment.

Speaker #6: And for the VPNP segment, it's interesting to see that— and that's good news— that all product lines are equally growing. Definitely a focus on communications and back office, as you remember, our discussions as well, that we have also started here a partnership with Nextcloud, bringing a sovereign Euro Office solution.

Speaker #2: And the industry and this is why the performance is relatively comparable to Q4 last year.

Speaker #5: That's very helpful. Thank you.

Speaker #3: Yeah, all in all, Google did not do a great job so far in resurrecting that whole market scheme. So it's not us only. It's the whole all the competitors doing the same business.

Speaker #6: Then also, we have, in online marketing, the website builder obviously is really developing nicely. As a reminder, all AI momentum revenues are not in the VPNP performance at the moment—build it up—and neither are they in the guidance.

Speaker #3: So Google is just in the midst of they started these RSOC contracts coming from IFD. And then things went south with the new regulations and payout schemes and so on.

Speaker #6: So that will be on top. And that means also—what Achim mentioned in the first slide, that the AI embedding of features into the VPNP segment—is also tracking off.

Speaker #3: So our partners having a hard time now to ramp up this business. And so we're in talks with Google and it takes it's a big company.

Speaker #6: So that will be additional growth momentum also moving into 2027. And that we can report about the VPNP very clearly.

Speaker #3: I think they have different things on their plate as well. And so that's the status. But in all the numbers you see, that's already factored in.

Speaker #5: Thanks a lot.

Speaker #7: Thank you. Maybe just to follow up on the first question. I guess you're just thinking about your midterm guidance. Obviously, you already expect acceleration to 20% for cloud solutions.

Speaker #3: We'll see.

Speaker #2: Thank you.

Speaker #1: The next question comes from George Webb from Morgan Stanley. Please go ahead.

Speaker #4: Yeah, hi. Just had a follow-up. You called out in the half year report that the domain services partnership, which is presumably entry, has been, I think, about 80,000 in customer additions in the first half.

Speaker #7: I guess, just assuming that, you know, you'll get there in the medium term—does that 6% still hold, or are you—I guess you alluded to the fact that it might edge up a bit more?

Speaker #4: I'm curious how you think about that partnership and how that can continue to contribute into the customer base and what you're seeing in terms of the customer acquisition costs through that channel.

Speaker #4: Yeah, I think that's what I tried to say, yeah. We have to expect—I mean, if you want to keep the growth in the cloud as it is, and even if you shift a little bit of the product mix—I think it's fair to expect a little more on CAPEX.

Speaker #4: And perhaps also the kind of the economics of Are they largely locked into a domain type contract without an ability to upsell, or do you think you can actually get better economics on those customers over time as well?

Speaker #4: You know, everybody knows prices are crazy right now for hardware. Like I said, for this year, it doesn't matter because we're already— you know, we have what we need, or we have the contracts at least for the prices we need.

Speaker #4: But, you know, driving that growth, or even accelerating that growth next year, plus the higher hardware prices for all things which are connected to RAM, will increase the capex.

Speaker #4: Thank you.

Speaker #3: Let me first say the contract structure in total and then Patrick can talk about the numbers. So firstly, these are normal customers to us.

Speaker #3: So it's a partner entry and once we have the customer, we can basically treat these customers as just any other customers. We do the billing.

Speaker #4: That's fair to say. But we haven't done the math yet for next year. I wouldn't expect it— you know, it's not going to be crazy because, like, we have some means of steering, you know, from efficiency standpoint, we have possibilities to, for example, do a shift from rather a lower margin or lower growth products like the dedicated servers, a very old product line, taking the CAPEX from this line going to rather to the cloud business, which is much more for the, you know, future proof.

Speaker #3: We have the customer relationship. We can up and cross-sell any product. Yeah. Or mostly any product. I mean, if the customer came from a whatever special project company, something we should not sell the same product to them as they just came from.

Speaker #3: But anything else then, it's just a regular customer. We apply our the same up and cross-selling mechanics to these customers. So fully a real customer.

Speaker #4: So there's some possibilities, but we haven't run the numbers yet. We're just starting now—soon—with the budget planning for next year. You know, we can report a little more in the next session.

Speaker #3: So there's no difference mostly. And for the numbers.

Speaker #2: And for the numbers, as we already stated, it was an extraordinary Q1. We reported that. And it will continue in line with our growth, what I said into customer net growth.

Speaker #7: Got it. Thank you.

Speaker #6: Thank you, Victor.

Speaker #2: As a reminder, for questions from the webinar, please click the Q&A button on the left side of the screen, and then click the 'Raise Your Hand' button.

Speaker #2: So over the year. And as a reminder, we also owning a share on that partner, which is obviously also very valuable. So we see it very positive that partnership moving forward as well.

Speaker #2: If you're connected via phone, please press star followed by 1 on your telephone keypad. Next question comes from Stephan Beyazian from Adobe HF. Please go ahead.

Speaker #2: Thank you, George.

Speaker #1: For further questions, please click the Q&A button on the left side of the screen and then click the raise your hand button. If you're connected via phone, please press star and one.

Speaker #7: Yes, hello. I hope you can hear me now. Yes.

Speaker #4: Yes. Good morning.

Speaker #7: Sorry about that. I was just wondering whether we should be expecting a little bit of a slowdown in your commercial trends in the second half of this year, because you've done so great in the first half. And even if your focus is on top line, perhaps you may want to re-accelerate in order to meet the guidance — you know, the APDA growth — in the second half.

Speaker #1: Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Stephan Gramkow for any closing remarks.

Speaker #3: Yeah, thank you, operator. And thank you all for joining today's call. Please feel free to reach out for any follow-up questions. Have a great day.

Speaker #3: Stay safe and goodbye.

Speaker #2: Thank you. Bye. Everybody.

Speaker #7: So, the question is: should we expect a little bit of a slowdown in net additions in the second half of this year? And my second question is whether you could put a little more color around the ad tech situation.

Speaker #7: Thank you.

Speaker #6: So, in general, what we said: we had a tremendously good Q1, which was extraordinary, with 180,000 net new adds. We are now moving to a great Q2 with 100,000 additional.

Speaker #6: As we always said, you can't multiply the Q1 number by four, but definitely a range of 450, which would be a record year, is certainly realistic.

Speaker #6: And that means we don't see a slowdown. And the second question would be: for ad tech, as I already mentioned in my short speech and presentation, we are doing a restructuring program at the moment.

Speaker #6: So we're adapting the cost base in relation to revenue. The overall, let's say, situation in that segment is, as for all the competition and also for our business, not recovering.

Speaker #6: And this is why we are in parallel discussions with potential buyers during the restructuring, and we expect in the second half of the year a message about that business.

Speaker #7: Has your strategy changed in that you could actually keep the business if you're not finding, let's say, the right buyer at the right price?

Speaker #6: Absolutely. All options are on the table and needs to be considered. That's our duty. And this is why we don't want to be in a fast, but we want to be in a high-quality decision.

Speaker #6: This is why we're acting in Q2.

Speaker #7: And can you give us just an idea of the results of ad tech in the first half in terms of APDA, in terms of top-line momentum?

Speaker #6: As you already saw, I mean, the value contribution from an EBITDA perspective in 2025 was €31 million. This was tremendously dependent on revenue. The revenue came down in Q4 already.

Speaker #6: So, we expect that business to have a low single-digit EBITDA contribution over the year. And this is why we need to work on the cost base.

Speaker #6: With that said, you can imagine, with a 10 to 11 percent EBITDA margin business, where the revenue stands at about—and that's for the entire segment.

Speaker #6: And the industry. And this is why the performance is relatively comparable to Q4 last year.

Speaker #7: That's very helpful. Thank you.

Speaker #4: All in all, Google did not do a great job so far in resurrecting that whole market scheme. So it's not just us—it's the whole, you know, all the competitors doing the same business.

Speaker #4: So Google is just in the midst of—you know, they started these RSOC contracts coming from IFD. And then things went south with the new regulations and payout.

Speaker #4: Schemes and so on, so that our partners are having a hard time now ramping up this business. And so we're in talks with Google, and it takes—it's a big company; I think they have different things on their plate as well.

Speaker #4: And so, you know, that's the status. But, you know, in all the numbers you see, that's already factored in. So.

Speaker #7: Thanks a lot.

Speaker #4: We'll see.

Speaker #6: Thank you.

Speaker #2: The next question comes from George Webb from Morgan Stanley. Please go ahead.

Speaker #6: Yeah, hi. Just had a follow-up. You called out in the half-year report that the domain services partnership, which is presumably entry, has been, I think, about 80,000 in customer additions in the first half.

Speaker #6: I'm curious how you think about that partnership and how that can continue to contribute into the customer base and what you're seeing in terms of the customer acquisition costs through that channel, and perhaps also the kind of the economics of the customers that come through that channel.

Speaker #6: Are they largely locked into a domain-type contract without an ability to upsell, or do you think you can actually get better economics on those customers over time as well?

Speaker #6: Thank you.

Speaker #4: Let me first, so the contract structure, in total, and then the Patrick can talk about the numbers. So firstly, these are normal customers to us.

Speaker #4: So it's a partner entry. And once we have the customer, we can, you know, basically treat these customers as just any other customers. We do the billing.

Speaker #4: We have the customer relationship. We can up and cross-sell any product. Yeah. Or mostly any product. I mean, if the, you know, the customer came from a whatever, special project company, something we should not sell the same product to them as they just came from.

Speaker #4: But anything else then, it's just a regular customer. We have— we apply our the same up and cross-selling mechanics to these customers. So fully, fully a real customer.

Speaker #4: So there's no difference mostly. So and from the numbers.

Speaker #6: And for the numbers, as we already stated, it was an extraordinary Q1. We reported that, and it will continue in line with our growth, what I said in to customer net growth.

Speaker #6: So over the year. And as a reminder, we also owning a share on that partner, which is obviously also very valuable. So we see it very positive that partnership moving forward as well.

Speaker #6: That's helpful. Thank you. Thank you, George.

Speaker #2: Further questions, please click the Q&A button on the left side of the screen, and then click the raise your hand button. If you're connected via phone, please press star and one.

Speaker #2: Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Stephan Gramkow for any closing remarks.

Speaker #4: Yeah, thank you, operator, and thank you all for joining today's call. Please feel free to reach out for any follow-up questions. Have a great day.

Speaker #4: Stay safe and goodbye.

Speaker #1: Thank you. Bye.

Speaker #6: Thank you.

Speaker #4: Everybody. Bye-bye.

Operator: Ladies and gentlemen, welcome to the IONOS Group SE publication of the Q2 2026 Results Conference. I am Moira, the call's operator. I would like to remind you that all participants will be in listen-only mode and the conference is being recorded. The presentation will be followed by a question-and-answer session. If you would like to ask a question from the webinar, you may click the Q&A button on the left side of your screen and then click the raise your hand button. If you're connected via phone, please press star followed by one on your telephone keypad. For operator assistance, please press the operator assistance button on the bottom left side of your screen or star zero on your telephone keypad.

Operator: At this time, it's my pleasure to hand over to Stephan Gramkow. Please go ahead.

Stephan Gramkow: Hey, good morning and welcome to the IONOS Analyst and Investor Call for H1 2026. My name is Stephan Gramkow, and I'm heading Investor Relations at IONOS. Let me walk you through today's agenda. Our CEO, Achim Weiss, will open with a business and strategy update. Patrik Heider, CFO of IONOS, will then cover the financial results, Q2 results, the full-year outlook, as well as the midterm targets. Both will be available for questions after the presentation. I would now like to hand it over to Achim. The floor is yours.

Achim Weiss: The adoption curve and the customer feedback confirm we are addressing a real and underserved need. These results have been achieved with very limited marketing investment until June, when we finally started campaigns across all channels, including TV. The AI App & Site Builder launched in July. We take another step in expanding the Momentum ecosystem, bringing the power of generative web application development to small and medium-sized businesses. The approach is straightforward: business owners describe what they need by text, by voice, or by uploading a screenshot, and receive a fully functional web application within minutes. Unlike traditional website builders, which produce static pages, our platform generates complete programs with connected databases and real business logic, requiring no programming skills, no agency involvement, and no additional contracts. The range of possible applications is broad: company websites, product configurators, appointment schedulers, internal dashboards, pricing calculators, just to name a few.

Patrik Heider: In Web Presence & Productivity, revenue rose 7.3% year over year, or 8.1% excluding currency effects. This steady performance continues to be driven by subscriber expansion alongside effective cross-selling and upselling across our product portfolio. In Cloud Solutions, revenue expanded by an impressive 19.5%, or 20.4% on a constant currency basis. I'll share more details on this segment shortly. External revenue growth reached 9.1% year over year, which is a particularly strong result on an external revenue reported basis. Intercompany hosting services to United Internet Group companies contributed €8.5 million in Q2, down from €10.9 million last year, reflecting the step down we had planned. Our total customer base now stands at 6.91 million as of Q2 2026, with 100,000 net new customers added in Q2. ARPU-

Browse all earnings call transcripts

Q2 2026 IONOS Group SE Earnings Call

Request TrialDemo

IONOS Group SE

Earnings