EQS-Adhoc: 1&1 updates EBITDA forecast for 2025

1&1 updates EBITDA forecast for 2025

Montabaur, 27 June 2025. 1&1 AG (ISIN DE 0005545503) updates its EBITDA forecast for the 2025 fiscal year. EBITDA is now expected at approximately €545 million (previous forecast for 2025: approximately €571 million).

The decrease is based on lower EBITDA in the Access segment, which is expected at approximately €810 million (previous forecast for 2025: approximately €836 million).

This is primarily due to higher than planned wholesale costs for national roaming with Vodafone. The national roaming agreement between 1&1 and Vodafone is based on a capacity model, whereby 1&1 pays Vodafone a fixed price per percentage point for the percentage of the Vodafone network used by its customers in Germany.

In its planning for 2025, 1&1 has made assumptions about monthly data growth on the Vodafone network, taking historical values into account. Based on the 1&1 usage share determined by Vodafone in its invoices, the Company now believes that its assumptions regarding data growth on the Vodafone network in 2025 were too optimistic and that 1&1 will therefore have to purchase a higher percentage of the Vodafone network than planned in order to serve its mobile customers. The additional costs will only be partially offset by savings in other areas.

EBITDA in the 1&1 Mobile Network segment is expected to remain unchanged year-on-year at approximately -€265 million (2024: -€265.3 million). This includes approximately -€100 million in expenses for customer migration and for wholesale services, which will no longer apply after the complete migration of all customers starting from 2026.

The contract portfolio and service revenue are still expected to remain unchanged in fiscal year 2025 at the previous year's level (2024: €3,303.1 million). The investment volume (cash capex) is expected to remain at around €450 million.

Montabaur, 27 June 2025

1&1 AG

The Management Board

About 1&1 AG

1&1 AG, headquartered in Montabaur, is a listed telecommunications provider and part of the United Internet Group.

With a focus on the German market, 1&1 specifically strengthens the country's digital sovereignty. 1&1 is the first network operator in Europe to operate a fully virtualised 5G mobile network based on innovative Open RAN technology - independent, technology-agnostic and ready for real-time-applications of the future. As the fourth network, 1&1 O-RAN stands for more competition and innovation in the German mobile communications landscape.

In addition to a comprehensive mobile communications portfolio, broadband connections are offered which are mostly based on 1&1 Versatel's Germany-wide fibre-optic transport network and on regional networks of city carriers and Deutsche Telekom.

While the 1&1 brand addresses value and premium segments, the Group's discount brands appeal to price-conscious target groups.

Note:

Fiscal performance indicators such as EBITDA, EBITDA margin, EBIT, EBIT margin or free cash flow are used in addition to the disclosures required by the International Fiscal Reporting Standards (IFRS) in the annual and interim fiscal statements of 1&1 AG and in ad hoc reports pursuant to Art. 17 MAR to ensure a clear and transparent presentation of 1&1 AG business development. Information about the use, definition and calculation of these performance indicators is provided on pages 57-59 of the Annual Report 2024 of 1&1 AG.