1&1 reports half-year results, forecast for 2025 confirmed

1&1 reports half-year results, forecast for 2025 confirmed

• Customer contracts at 16.33 million
• Service revenues unchanged at €1,646.5 million
• - 5.3 percent EBITDA (operational) to €414.5 million
• - 13.1 percent EBITDA (total) to €283.9 million (H1 2024: €326.6 million), due to higher start-up costs for the 1&1 mobile network as planned
• Outlook 2025 confirmed

Montabaur, 7 August 2025 – In H1 2025, 1&1 AG (ISIN DE 0005545503) the number of broadband contracts declined as planned by 60,000 to 3.89 million (December 31, 2024: 3.95 million contracts). The number of mobile Internet contracts remained stable at 12.44 million contracts at the end of H1 2025 (December 31, 2024: 12.44 million contracts) .

In the first half 2025, the high-margin service revenue was with €1,646.5 million at the previous year's level (H1 2024: €1,644.9 million) whilst low-margin hardware revenue declined by -3.0 percent to €359.9 million (H1 2024: €371.0 million). Overall, revenue in the first half 2025 declined by -0.5 percent to €2,006.4 million (H1 2024: €2,015.9 million).

While EBITDA in the Access operating segment declined in H1 2025 by 5.3 percent to €414.5 million (H1 2024: €437.6 million), start-up costs for the 1&1 mobile network increased as planned to -€130.6 million (H1 2024: -€111.0 million). EBITDA declined by 13.1 percent to €283.9 million (H1 2024: €326.6).

Due to lower EBITDA and increased depreciation and amortization, particularly as a result of the growing number of antenna sites in the 1&1 mobile network, EBIT declined to €118.1 million (H1 2024: €196.1 million). As a result, earnings per share (EPS) in H1 2025 came to €0.42 (H1 2024: €0.77). Excluding the impact of PPA write-downs, earnings per share amounted to €0.60 (H1 2024: €0.89).

The investment volume (cash capex) amounted to €118.0 million (H1 2024: €34.0 million).

Forecast 2025

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

EBITDA is expected to decline by approx. 7.8 percent to approx. 545 million (2024: €590.8 million). This decline is due to a lower EBITDA in the Access segment, which is expected to reach approx. €810 million (2024: €856.1 million). The reasons for the decline in EBITDA are higher advance payment costs for national roaming due to a lower than expected network growth at Vodafone and the expiry of the national roaming agreement with Telefónica. This agreement provided for one-time payments every five years, which were capitalized and amortized as planned, whereas the new national roaming agreement with Vodafone does not provide for such one-time payments. The usage of the Vodafone network is recognized in full in EBITDA.

In this respect, the switch to Vodafone will not result in any change in EBIT – the impact on EBITDA will be offset by a reduction in depreciation and amortization in the same amount.

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 network 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 H1 2024 vs. H1 2025

This quarterly statement will be made available on the Company’s home page on 7 August 2025.

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

Montabaur, 7 August 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 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 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.