EQS-News: 1&1 with expected start to the year, forecast for 2025 confirmed

1&1 with expected start to the year, forecast for 2025 confirmed

• Customer contracts at 16.35 million
• Service revenues unchanged at €821.9 million
• - 0.8 percent EBITDA (operational) to €222.9 million
• - 14.5 percent EBITDA (total) to €155.9 million, due to higher start-up costs for the 1&1 mobile network as planned
• Outlook 2025 confirmed

Montabaur, 12 May 2025 – In Q1 2025, 1&1 AG (ISIN DE 0005545503) the number of customer contracts declined as planned compared with December 31, 2024 by 40,000 to 16.35 million. The decline is attributable to both mobile Internet contracts, which totalled to 12.42 million contracts at the end of Q1 2025 (December 31, 2024: 12.44 million contracts), and the 3.93 million broadband connections (December 31, 2024: 3.95 million contracts).

In the first quarter, the high-margin service revenue was with €821.9 million at the previous year's level (Q1 2024: €821.9 million) whilst low-margin hardware revenue declined by 2.9 percent to €196.6 million (Q1 2024: €202.5 million). Overall, revenue in the first quarter 2025 declined by 0.6 percent to €1,018.5 million (Q1 2024: €1,024.4 million).

While EBITDA in the Access operating segment declined in Q1 2025 by 0.8 percent to €222.9 million (Q1 2024: €224.7 million), start-up costs for the 1&1 mobile network increased as planned to -€67.0 million (Q1 2024: -€42.4 million). EBITDA declined by €26.4 million to €155.9 million (Q1 2024: €182.3).

Due to higher depreciation and amortization, in particular due to the increased number of antenna sites in the 1&1 mobile network, EBIT declined to €73.2 million (Q1 2024: €117.9 million). As a result, earnings per share (EPS) in Q1 2025 came to €0.27 (Q1 2024: €0.47). Excluding the impact of PPA write-downs, earnings per share amounted to EUR 0.36 (Q1 2024: EUR 0.53).

The investment volume (cash capex) amounted to €27.9 million (Q1 2024: €10.1 million.

Forecast 2025

For the financial year 2025, the company confirms its forecast and expects a stable contract base and service revenue at the previous year's level for the 2025 fiscal year (2024: €3,303.1 million).

EBITDA is expected to decline by approx. 3.4% to approx. 571 million (2024: €590.8 million).

This decline is based on a lower EBITDA in the Access segment, which is expected to reach approx. €836 million (2024: €856.1 million). The decline in EBITDA results from the expiration of the national roaming agreement with Telefónica, which provides for one-time payments every five years that are capitalised and amortised. The equivalent commercial national roaming agreement with Vodafone for 1&1 does not provide for such one-off payments. The usage of the Vodafone network is recognised in the EBITDA as wholesale costs. Therefore, the switch to Vodafone does not result in any change in EBIT – the negative impact on EBITDA is offset by the equal amount of relief in depreciation.

EBITDA in the 1&1 Mobile Network segment is expected to remain unchanged at approx. -€265 million (2024: -€265.3 million). This includes approximately -€100 million in expenses for customer migration and for wholesale services, which will no longer apply after the complete migration of all customers starting from 2026.

The investment volume (cash capex) should amount to approx. €450 million (2024: €290.6 million).

Performance indicators pursuant to IFRS — comparison Q1 2024 vs. Q1 2025

This quarterly statement will be made available on the Company’s home page on 12 May 2025.

https://www.1und1.ag/investor-relations-en#meldungen-berichte-praesentationen

Montabaur, 12 May 2025

1&1 AG

The Management Board

About 1&1 AG

1&1 AG, headquartered in Montabaur, is a listed telecommunications provider and part of the United Internet Group. With a focus on the German market, 1&1 specifically strengthens the country's digital sovereignty. 1&1 is the first network operator in Europe to operate a fully virtualised 5G mobile network based on innovative Open RAN technology - independent, technology-agnostic and ready for real-time-applications of the future. As the fourth network, 1&1 O-RAN stands for more competition and innovation in the German mobile communications landscape.
 

In addition to a comprehensive mobile communications portfolio, broadband connections are offered which are mostly based on 1&1 Versatel's Germany-wide fibre-optic transport network and on regional networks of city carriers and Deutsche Telekom.

While the 1&1 brand addresses value and premium segments, the Group's discount brands appeal to price-conscious target groups.