1&1 publishes preliminary results for the H1-2024 and updated forecast 2024

EQS-Ad-hoc: 1&1 AG / Key word(s): Preliminary Results/Change in Forecast 1&1 publishes preliminary results for the H1-2024 and updated forecast 2024 02-Aug-2024 / 22:04 CET/CEST Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. 1&1 publishes preliminary results for the H1-2024 and updated forecast 2024

 Montabaur, 2 August 2024 – 1&1 AG (ISIN DE 0005545503was able to increase the number of its customer contracts in first half of 2024 in comparison with 31 December 2023 by 90,000 to 16.35 million. The growth was based on 110,000 new mobile Internet contracts won, whose base stood at 12.36 million at the end of the first half of 2024. Broadband lines declined slightly by 20,000 to 3.99 million.

The high-margin service revenue rose by 3.8 percent to €1,644.9 million (H1 2023: €1,584.6 million) whilst low-margin hardware revenue declined to €371.0 million (H1 2023: 408.5 million) in the first half of 2024. Overall, revenue in the first half 2024 rose by 1.1 percent to €2,015.9 million (H1 2023: €1,993.1 million).

EBITDA in the Access operating segment increased in H1 2024 by 11.4 percent to €437.6 million (H1 2023: €392.8 million). Start-up costs for the 1&1 mobile network increased to -€111.0 million (H1 2023: -€40.8 million). Of this amount, €14.3 million are out-of-period expenses from subsequent invoices for additional services for network expansion in 2022 and 2023. As a result of these increased start-up costs, total EBITDA declined by -7.2 percent to €326.6 million (H1 2023: €352.0) or -3.2 % to €340.9 million, excluding out-of-period expenses.

The investment volume (cash capex) amounted due to a phasing effects in H1 to €34.0 million (H1 2023: €81.0 million). The low investment volume is due to phasing effects during the year.

As a result of a temporary outage of the 1&1 mobile network at the end of May 2024, there was an increase in cancellations, which mainly took effect in June and July. As a result, contract growth and the associated growth in service revenue and EBITDA in the first half of 2024 were lower than expected. Growth is also expected to be lower than planned in the third quarter.