1&1 (1U1) Q3 2025 earnings summary

Executive summary

• Customer contracts totaled 16.34 million as of September 2025, with 12.48 million mobile and 3.86 million broadband contracts, reflecting a net decrease of 50,000 contracts in nine months; mobile contracts increased by 40,000 while broadband declined by 90,000.

• Completed migration of all mobile customers to the new 1&1 5G O-RAN network, achieving competitive independence and the world's largest Open-RAN mobile network by user count ahead of regulatory deadlines.

• Revenue for the first nine months of 2025 was €3,016.2 million, stable year-over-year, with service revenue at €2,479.3 million.

• Net income for the first nine months of 2025 was €110.7 million, down 43.6% year-over-year, reflecting higher costs and lower operating profit.

• Maintained high customer satisfaction, winning multiple awards for service and network quality.

Financial highlights

• EBITDA declined by 11.5% to €409.8 million, mainly due to higher network expansion and migration costs; Access segment EBITDA was €611.0 million, down 3% year-over-year.

• Mobile Network segment reported negative EBITDA of €-201.2 million, reflecting network expansion and migration costs.

• EBIT dropped 39% to €175.4 million, and EPS decreased 43.2% to €0.63; adjusted EPS excluding PPA write-downs was €0.86.

• Free cash flow improved to €204.0 million from €63.0 million year-over-year.

• Gross margin decreased to 23.7% from 27.4% in the prior year, with gross profit from turnover at €714.9 million.

Outlook and guidance

• Service revenue for 2025 expected to remain at the prior year’s level of approximately €3.3 billion.

• EBITDA projected to decline to around €545 million, with Access segment EBITDA at €810 million and Mobile Network segment EBITDA at about €-265 million, including €100 million in migration and network service expenses.

• CapEx guidance reduced by €50 million, with postponed projects to be completed in 2026; 2025 CapEx now projected at €400 million.

• 25% population coverage with own network expected by end of 2025.

• Stable contract base and continued network expansion position the company for future growth.