UI Q2 sales, earnings boosted by webhosting, DSL

FRANKFURT, Aug 12 (Reuters) - Germany's United Internet (UTDI.DE) posted a 12.6 percent increase in second-quarter core profit to 88.6 million euros ($132 million) on strong customer growth, especially in its webhosting business.

Sales increased 14.2 percent to 412.4 million euros compared with the previous year, the country's second-biggest Internet service provider after Deutsche Telekom (DTEGn.DE) said in a statement on Tuesday.

Analysts had on average seen an 11.4 percent rise in earnings before interest, tax, depreciation and amortisation (EBITDA) to 88 million euros on a 16.1 increase in sales to 419 million euros, according to a Reuters poll.

Net income in the quarter was 45.2 million euros, up 13.9 percent. Earnings per share rose 25 percent to 0.20 euros.

United Internet, based in Montabaur, north of Frankfurt, offers broadband access and is also active in Internet advertising, e-mail services and hosting Web domains.

The number of fee-based customer contracts grew to 7.7 million by June 30 from 7.15 million at the end of 2007 mostly thanks to the company's webhosting business.

United Internet said that figure included 2.76 million DSL subscribers, adding that around 60,000 further DSL contracts were still being processed at the end of the first half-year.

The company, which competes with freenet FNTG.DE and Versatel (VTWGn.DE), has said it expects sales, core profit and earnings per share to grow 20 percent this year. After posting strong growth in its first quarter it said it may adjust its full-year targets after the 2008 first half. (Reporting by Nicola Leske, editing by Richard Chang)