1&1 (1U1) investor relations material

Executive summary

• Customer contracts remained stable at 16.32 million in Q1 2026, with 12.48 million mobile and 3.84 million broadband connections.

• Revenue grew 1.1% year-over-year to €1,146.0 million, while net profit rose to €17.8 million from €11.1 million.

• EBITDA was nearly flat at €192.4 million, with a 9.4% decline in the Consumer & Small Business segment due to higher roaming costs.

• Enterprises & Networks EBITDA loss improved to -€9.5 million, a 68.8% year-over-year increase, driven by more self-generated mobile wholesale services.

• The company completed the migration of all customers to its own 5G Open RAN network, now reaching 29% of German households.

Financial highlights

• Service revenue declined 1.2% year-over-year to €899.7 million, while other revenues rose 10.8% to €246.3 million, mainly from higher smartphone sales.

• Gross profit fell 6.8% to €250 million, mainly due to higher national roaming costs.

• EBIT increased to €57.8 million from €45.5 million, driven by lower amortization and network savings.

• Free cash flow rose to €56.2 million from €15.8 million year-over-year.

• Cash capex for Q1 2026 was €95.2 million, with the majority invested in Enterprises & Networks.

Outlook and guidance

• 2026 service revenue expected to remain stable at €3.66 billion.

• EBITDA forecasted to rise to approximately €800 million in 2026.

• Annual operational EBITDA growth of €100 million projected for 2027 and 2028, with similar CapEx levels as 2026.

• CapEx for 2026 planned at €500–550 million, with €300–350 million allocated to mobile network build-out.