EQS-Adhoc: 1&1 confirms preliminary result 2024 and publishes forecast 2025

1&1 confirms preliminary result 2024 and publishes forecast 2025

Montabaur, 25 March 2025. 1&1 AG (ISIN DE 0005545503) confirms its preliminary result 2024 (Ad hoc 13 February 2025) and publishes its forecast for the fiscal year 2025. The earnings forecast is well below market expectations while cash capex is higher.

Forecast for the 2025 fiscal year

1&1 expects as result of a further slight increase in cancellations in connection with the migration of all mobile customers to the new 1&1 network, which will be completed by the end of the year, a stable contract base as well as service revenues at the previous year's level (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).

Montabaur, 25 March 2025

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.

Note:

Fiscal performance indicators such as EBITDA, EBITDA margin, EBIT, EBIT margin or free cash flow are used in addition to the disclosures required by the International Fiscal Reporting Standards (IFRS) in the annual and interim fiscal statements of 1&1 AG and in ad hoc reports pursuant to Art. 17 MAR to ensure a clear and transparent presentation of 1&1 AG business development. Information about the use, definition and calculation of these performance indicators is provided on pages 59, 60 of the Annual Report 2023 of 1&1 AG.