Q2 2024 1&1 AG Earnings Call Transcript
Key Points
- 1&1 AG (XTER:1U1) reported a 1.1% increase in revenue for the first half of 2024, reaching EUR2.015 billion.
- The company achieved an 11.4% growth in EBITDA in its operating business access segment.
- 1&1 AG successfully launched the first fully virtualized Open RAN in Europe, enhancing its mobile network capabilities.
- The company added 90,000 new mobile contracts in the first half of the year, demonstrating growth in its customer base.
- 1&1 AG's service revenue grew by 3.8%, with a potential growth of 4.4% when excluding regulatory effects, indicating strong performance in core services.
- 1&1 AG experienced a EUR111 million loss, partly due to out-of-period expenses related to network expansion preparations.
- The company faced a reduction of 20,000 broadband connections in the first half of the year.
- There was a significant decrease of 9.2% in smartphone-related revenue, which has low margins.
- The company encountered a network failure that lasted almost a day, impacting customer service and raising concerns about network reliability.
- 1&1 AG's CapEx for the first half of the year was EUR34 million, with expectations of higher expenses in the second half, indicating potential financial strain.
Good morning, ladies and gentlemen, here on site. Welcome, ladies and gentlemen in their webcast. I'd like to extend a warm welcome on behalf of our management Board of 1&1, Mr. Dommermuth and Mr. Huhn, CEO and CFO. The management board will present the results of the first half year of 2024 to you. Afterwards, who will talk about the forecast for the rest of the year. (Event Instructions)
Now I'd like to hand over to Mr. Dommermuth.
Thank you, Mr. Keil. Welcome, ladies and gentlemen. First half of the year 2024 and forecast for the rest of the year. I'll start with the company development and the status of our mobile network. Then Mr. Huhn will follow with the financial key figures and the forecast for the rest of the year.
You know our business. We offer broadband connections and mobile networks. We have 3.99 million customers in our broadband network business. That's VDSL and FTTH complete
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