1&1 (1U1) Q4 2024 earnings summary

Executive summary

• 2024 revenue was EUR 4.064 billion, down 0.8% year-over-year, with high-margin service revenue up 1.8% to EUR 3.303 billion and hardware revenue down 10.8%.

• EBITDA for 2024 was EUR 590.8 million, with Access segment EBITDA at EUR 856.1 million (up 8.9%) and 1&1 Mobile Network segment at EUR -265.3 million, reflecting high startup and migration costs.

• Net income for 2024 was EUR 212.8 million, down 32.4% from 2023, mainly due to increased network build-out and migration expenses.

• Free cash flow improved to EUR 20.8 million from EUR -70.1 million in 2023.

• Customer contracts increased to 16.39 million, with mobile contracts at 12.44 million and broadband lines at 3.95 million.

Financial highlights

• Gross profit declined 10.1% to EUR 1.042 billion, with Access segment gross profit up 5.7% and Mobile Network segment gross profit negative due to depreciation and 5G build-out costs.

• Distribution costs rose 4.4% to EUR 535.7 million, while administrative costs slightly decreased.

• Net cash flows from operating activities were EUR 311.4 million, up from EUR 225.6 million.

• CapEx for 2024 was EUR 290.6 million, mainly for network expansion.

• Equity ratio remained strong at 75.0%.

Outlook and guidance

• 2025 service revenue expected to remain stable at around EUR 3.3 billion.

• 2025 EBITDA forecasted at approximately EUR 571 million, with Access segment EBITDA at EUR 836 million and Mobile Network segment at around EUR -250 million.

• CapEx guidance for 2025 is EUR 450 million, reflecting continued network expansion and some phasing effects from 2024.

• Customer base expected to remain stable in 2025 due to ongoing large-scale migration; growth anticipated to resume post-migration in late 2025.