1&1 (1U1) Q2 2025 earnings summary

Executive summary

• Customer base stable at 16.33 million contracts as of June 30, 2025, with 12.44 million mobile and 3.89 million broadband lines; broadband declined slightly due to migration.

• Over 10 million customers migrated to the Open RAN network by June 2025, with full migration expected by year-end.

• Achieved best-in-class network quality and customer satisfaction ratings in both broadband and mobile segments, with multiple awards.

• Major network expansion underway, with over 1,200 antenna sites operational and 4,500 in development.

• Operating business only partially met expectations due to migration and network transition challenges.

Financial highlights

• Revenue for H1 2025 was €2,006.4m, down 0.5% year-over-year; service revenue stable at €1,646.5m (+0.1%).

• EBITDA declined 13.1% to €283.9m; EBIT fell 39.8% to €118.1m; net income dropped to €74.6m from €136.4m.

• Free cash flow improved to €111.5m from -€58.5m in H1 2024, mainly due to lower one-off payments and higher operating cash flow.

• Gross margin decreased to 24.4% from 27.6% year-over-year.

• Capex rose to €118.1m, mainly for mobile network build-out.

Outlook and guidance

• 2025 forecast confirmed: stable contract base, service revenue at 2024 level (€3.3bn), EBITDA around €545m (down from €590.8m in 2024).

• Access segment EBITDA expected at ~€810m, reflecting higher roaming costs; Mobile Network segment EBITDA at ~€-265m, including migration expenses.

• Cash capex projected at €450m for 2025, up from €290.6m in 2024, primarily for network expansion.

• Major cost savings anticipated in 2026 as migration completes and own network usage increases, with expected savings of about €100m.

• Management anticipates a return to contract growth in H2 2025 and remains optimistic about further network expansion.