1&1 (1U1) Q4 2024 earnings summary

Executive summary

• 2024 revenue declined to EUR 4.064 billion, with high-margin service revenue up 1.8% to EUR 3.303 billion and hardware revenue down 10.8% to EUR 0.761 billion.

• EBITDA for 2024 was EUR 590.8 million, with Access segment EBITDA at EUR 856.1 million and 1&1 Mobile Network segment at EUR -265.3 million due to 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.

• Dividend proposal of EUR 0.05 per share maintained.

Financial highlights

• Gross profit declined 10.1% year-over-year to EUR 1.042 billion, mainly due to higher costs in the mobile network segment.

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

• Net cash flows from operating activities increased to EUR 311.4 million (+38.1% year-over-year).

• 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.

• EBITDA projected to decrease to approximately EUR 571 million in 2025; Access segment EBITDA ~EUR 836 million, Mobile Network segment EBITDA ~-EUR 250 million.

• CapEx guidance for 2025 is EUR 450 million, reflecting continued network build-out and phasing effects from 2024.

• Customer base expected to remain stable in 2025, with growth resuming after migration completes.

• Migration to a new national roaming provider (Vodafone) expected to impact segment EBITDA in 2025.