1&1 (1U1) investor relations material

Executive summary

• Revenue for 2025 increased by 1.8% year-over-year to EUR 4.136 billion, with service revenue at EUR 3.336 billion and total customer contracts at 16.32 million, a slight decrease of 0.4%.

• Acquisition of 1&1 Versatel in December 2025 significantly impacted assets, liabilities, and financial results.

• EBITDA for 2025 was EUR 537.5 million, declining by 9.0% mainly due to higher roaming and litigation provisions, with operating profit (EBIT) at EUR 208.2 million.

• Free cash flow improved to EUR 195.1 million, up from EUR 20.8 million in 2024.

• Dividend proposal of EUR 0.05 per voting share for 2025, aligning with minimum requirements.

Financial highlights

• Gross profit declined by 10.4% to EUR 934.3 million, mainly due to increased wholesale costs for national roaming and higher depreciation.

• Net profit for 2025 was EUR 165.7 million, down from EUR 212.8 million in 2024.

• Cash CapEx reached EUR 409.2 million, primarily for mobile network expansion.

• Financial result worsened to EUR -30.2 million, mainly from lease and loan interest related to network expansion and Versatel acquisition.

• Other revenue rose by 5.0% to EUR 799.4 million, including EUR 10.4 million from 1&1 Versatel.

Outlook and guidance

• Service revenue for 2026 expected to remain stable at around EUR 3.66 billion.

• EBITDA projected to rise to approximately EUR 800 million in 2026, with annual growth of EUR 100 million targeted for 2027 and 2028.

• CapEx guidance for 2026–2028 set at EUR 500–550 million per year, focused on network build-out to reach 50% population coverage by 2030.

• Lease liabilities expected to increase slightly from the current EUR 200 million.

• Segment structure to change in 2026, with new reporting segments: “Consumer & Small Business” and “Enterprises & Networks.”