EQS-News: 1&1 1&1 with final key figures for the first half of 2024

1&1 1&1 with final key figures for the first half of 2024

• + 90,000 Customer contracts to 16.35 million
• + 3.8 percent service revenues to €1,644.9 million
• + 11.4 percent EBITDA (operational) to €437.6 million
• - 7.2 percent EBITDA (total) to €326.6 million
• Forecast 2024: ca. €3.33 billion service revenue, ca. €686 million EBITDA, ca. €460 million cash capex

Montabaur, 8 August 2024 –1&1 AG (ISIN DE 0005545503) publishes the final key figures on business development in the first half of 2024. The company had already announced preliminary half-year figures on 2 August 2024 and thus adjusted its forecast for the year.

In H1 2024 customer contracts increased in comparison with 31 December 2023 by 90,000 to 16.35 million. The growth was based on 110,000 new mobile Internet contracts won, whose base stood at 12.36 million at the end of the first half of 2024. At the same time, broadband lines declined slightly by 20,000 to 3.99 million.

The high-margin service revenue rose by 3.8 percent to €1,644.9 million (H1 2023: €1,584.6 million) whilst low-margin hardware revenue declined to €371.0 million (H1 2023: 408.5 million) in the first half of 2024. Overall, revenue in the first half 2024 rose by 1.1 percent to €2,015.9 million (H1 2023: €1,993.1 million).

EBITDA in the Access operating segment increased in H1 2024 by 11.4 percent to €437.6 million (H1 2023: €392.8 million). Start-up costs for the 1&1 mobile network increased as planned to €111.0 million (H1 2023: €40.8 million). Of this amount, €14.3 million are expenses relating to other periods from subsequent invoices for additional services for network expansion in 2022 and 2023. As a result of this, total EBITDA of 1&1 AG declined by – 7.2 percent to €326,6 million (H1 2023: €352.0) or by -3.2 percent to €340.9 million, excluding the out-of-period expenses.

On the basis of the lower EBITDA and increased depreciation and amortisation, in particular as a result of the launch of mobile services in the 1&1 mobile network at the end of 2023 in the amount of -€130.4 million (H1 2023: -€97.9 million), EBIT declined to €196.1 million (H1 2023: €254.1 million). As a result, earnings per share (EPS) in H1 2024 came to €0.77 (H1 2023: €1.02).

The investment volume (cash capex) amounted due to a phasing effects in H1 to €34.0 million (H1 2023: €81.0 million). The low investment volume is due to phasing effects, which is why the planned disbursements are now expected in the second half of the year.

Forecast 2024

As a result of a temporary outage of the 1&1 mobile network at the end of May 2024, there was an increase in cancellations, which mainly took effect in June and July. As a result, contract growth and the associated growth in service revenue and EBITDA in the first half of 2024 was lower than expected. Growth is also expected to be lower than planned in the third quarter.

For this reason, 1&1 AG has adjusted its forecast on 2 August 2024. The company now expects service revenue to increase by around 3% to approximately EUR 3.33 billion in the 2024 financial year (previously expected: approx. + 4 percent to €3.37 billion; 2023: €3.243 billion. EBITDA is in the operative segment Access is expected to increase by ca. 9 percent to ca. €860 million (previously expected: ca. + 12 percent to €880 million; 2023: €786.2 million). Start-up costs for the construction of the 5G network in the 1&1 Mobile Network segment are expected to amount to ca. -€174 million, due to -€14.3 million in out-of-period expenses (previously expected: -€160 million; 2023: -€132.4 million).

Overall, EBITDA in 2024 is expected to be around €686 million, or €700 million excluding out-of-period expenses (previously expected: ca. €720 million; 2023: €653.8 million).

The company now is expecting an investment volume (cash capex) of ca. €460 million (previously expected: ca. €380 million; 2023: €295.6 million). The background to this is the build-up of an inventory of network components, which were previously stockpiled by expansion partners.

Performance indicators pursuant to IFRS — comparison H1 2023 vs. H1 2024

This quarterly statement will be made available on the Company’s home page on 8 August 2024.

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

Montabaur, 8 August 2024

1&1 AG

The Management Board

About 1&1 AG

1&1 AG is a listed telecommunications provider domiciled in Montabaur. The Company is a member of the United Internet AG corporate group.

1&1 is the first network operator in Europe to operate a fully virtualised mobile network based on innovative Open RAN technology. 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.