EQS-News: 1&1: 2025 Financial Results and Forecast

1&1: 2025 Financial Results and Forecast

• 16.32 million customer contracts: +40,000 mobile; -110,000 broadband
• €3,336.6 million service revenue: +1.0% (including €29.8 million in service revenue from 1&1 Versatel)
• €537.5 million EBITDA: -9.0% (including €16.0 million EBITDA from 1&1 Versatel)
• Forecast for 2026 incl. 1&1 Versatel: Service revenues at previous year's level; approximately €800 million EBITDA; Cash capex at approximately €500-550 million
• Outlook for 2027 and 2028: operating EBITDA growth of approximately €100 million p.a.

Montabaur, March 19, 2026 – 1&1 AG (ISIN DE 0005545503) added 40,000 mobile internet contracts in fiscal year 2025, despite higher churn rates due to the now-completed migration of customers to the 1&1 mobile network, bringing the total number of contracts to 12.48 million, as of December 31, 2025. The number of broadband connections fell as expected by 110,000 to 3.84 million in the same period.

Revenue grew in 2025 by 1.8% to €4,135.8 million in 2025 (2024: €4,064.3 million), this includes€40.2 million from 1&1 Versatel due in December 2025. Following the acquisition of 1&1 Versatel, the company has been included in the consolidated financial statements of 1&1 AG since December 1, 2025

Service revenue in 2025 amounted to€3.336.4 million (2024: €3,303.1 million) and is slightly above the previous year's level, including €29.8 million from 1&1 Versatel as of December 2025.

EBITDA in 2025 (earnings before interest, taxes, depreciation, and amortization) declined by 9.0% to €537.5 million (2024: €590.8 million). This includes €16.0 million from 1&1 Versatel due in December 2025. In fiscal year 2025, EBITDA in the Access segment decreased by 8.1% to €786.8 million (2024: €856.1 million), while EBITDA in the 1&1 Mobile Network segment matched the previous year's figure of -€265.3 million.

The decline in EBITDA in the Access segment is primarily due to higher wholesale costs for national roaming. The switch from Telefónica to Vodafone had a negative effect on EBITDA but was EBIT neutral. This is because, under the national roaming agreement with Telefónica, the capacity used by 1&1 was partially capitalized and depreciated according to schedule, whereas under the agreement with Vodafone, it is fully recognized in EBITDA. In addition, there was an unexpected increase in costs for national roaming wholesale services due to slower-than-expected capacity growth on the Vodafone network.

Due to lower EBITDA and higher depreciation and amortization—primarily as a result of the growing number of antenna sites—EBIT decreased in 2025 to €208.2 million (2024: €309.4 million), representing a 32.7% decline from the previous year. This includes -€11.4 million from 1&1 Versatel due in December 2025.

Earnings per share (EPS) decreased in 2025 by 22.3% to €0.94 (2024: €1.21).

Free cash flow amounted to €195.1 million in 2025 (2024: €20.8 million). This improvement is primarily attributable to the discontinuation of advance payments made to Deutsche Telekom for VDSL/FTTH quotas until 2024.

The investment volume (cash capex) amounted to €409.2 million (2024: €291.0 million). Of this, €19.9 million is attributable to 1&1 Versatel.

Forecast 2026

The company expects service revenue for fiscal year 2026 to be at the previous year's level (2025 including 1&1 Versatel FY: €3.661.8 million).

EBITDA 2026 is expected to rise to approximately €800 million (2025 including 1&1 Versatel FY: €689 million).

The investment volume (cash capex 2026) is expected to amount to approximately €500 to 550 million (2025 including 1&1 Versatel: €689 million).

Outlook 2027 and 2028

Also for fiscal years 2027 and 2028 1&1 AG expects operating EBITDA growth of approximately €100 million per year. Cash capex is expected to remain at a similar level to 2026.

Annual General Meeting on May 20, 2026

Based on the figures for 2025, the Management Board and Supervisory Board will propose an unchanged dividend of €0.05 per share for the fiscal year 2025 (prior year: €0.05) at the Annual Shareholders' Meeting on May 20, 2026. This proposal is oriented to the minimum dividend required by Section 254 (1) Stock Corporation (Aktiengesetz; AktG). Assuming 176.5 million shares entitled to dividend (as per 31/12/2025), this would result in a total disbursement of €8.8 million for fiscal 2025.

Performance indicators pursuant to IFRS — comparison 2024 vs. 2025

The annual report will be made available on the Company’s home page on March 19, 2026.

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

Montabaur, 19 March 2026

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 the new 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 based on 1&1 Versatel's Germany-wide fibre-optic transport network and on networks of regional city carriers as well as of Deutsche Telekom.

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