1&1 (1U1) investor relations material

Executive summary

• Revenue increased by 1.6% year-over-year to €2,269.7 million in H1 2026, with growth in consumer/small business and stable enterprise/network segments.

• EBITDA rose 5.1% to €382.7 million, driven by improved performance in Enterprises & Networks, despite higher roaming costs.

• Net income surged to €30.5 million from €7.4 million year-over-year, driven by improved EBIT and lower PPA amortization.

• Customer contracts totaled 16.18 million, with a decline in mobile contracts due to discontinued low-price tariffs, but broadband showed positive growth.

• Strategic focus shifted to profitability, discontinuing low-margin tariffs and prioritizing high-value customers.

Financial highlights

• Service revenue declined by 1.1% year-over-year to €1,804.9 million, while other revenue grew 13% to €464.8 million.

• Gross profit fell 2.1% to €493.3 million, mainly due to increased national roaming costs.

• EBIT increased 61.1% to €111.3 million, reflecting lower depreciation and amortization.

• Operating cash flow rose 68.7% to €387.2 million; free cash flow improved to €167.2 million.

• CapEx decreased to €220 million, reflecting completion of major data center investments.

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 subsequent years.

• CapEx planned at €500–550 million for 2026, with similar levels anticipated for 2027–2028.

• Focus remains on profitable growth, network expansion, and improved utilization.