1&1 (1U1) investor relations material

Executive summary

• Revenue for H1 2026 grew 1.6% year-over-year to €2,269.7 million, with EBITDA up 5.1% to €382.7 million; net income rose sharply to €30.5 million from €7.4 million in H1 2025.

• Customer contracts totaled 16.18 million, with a decline of 140,000–150,000 mainly due to discontinued low-price tariffs and reduced data volumes.

• Focus shifted to higher-margin customers and profitability, with broadband business showing positive growth and broadband contracts increasing by 10,000.

• Forecast for 2026 and outlook for 2027 and 2028 confirmed, with priorities on profitability and network expansion.

Financial highlights

• Service revenue was €1,804.9 million, down 1.1% year-over-year, while other revenue grew 13.5% to €464.8 million.

• Gross profit declined 2.1% to €493.3 million due to higher national roaming costs.

• EBIT surged 61.1% to €111.3 million, supported by lower PPA amortization and reduced depreciation.

• Free cash flow improved to €167.2 million, up from €111.5 million in H1 2025.

• Equity ratio increased to 55.1% from 54.5% at year-end 2025.

Outlook and guidance

• Service revenue for 2026 expected to remain flat at around €3.66 billion.

• EBITDA forecasted to rise to approximately €800 million in 2026, with annual growth of €100 million expected in 2027 and 2028.

• CapEx planned at €500–550 million for 2026, with similar levels in subsequent years.

• Moderate growth in customer contracts anticipated for the full year, with continued focus on profitable growth and efficiency.