Q1 2025 1&1 AG Earnings Call Transcript
Key Points
- 1&1 AG (WBO:DRI) successfully migrated 50,000 customers per day to its own network, which is expected to enhance long-term operational efficiency.
- The company maintained stable high-margin service revenue at EUR822 million, aligning with expectations.
- 1&1 AG (WBO:DRI) confirmed its guidance for 2025, expecting stable contract base and service revenues.
- The company has a strategic plan to achieve 25% network coverage by the end of 2025, indicating progress in infrastructure development.
- 1&1 AG (WBO:DRI) reported a free cash flow of EUR15.8 million in Q1 2025, despite the challenges faced during the quarter.
- The company experienced a decrease of 40,000 contracts in its customer base during Q1 2025, with higher churn rates due to the ongoing migration process.
- Revenue declined slightly by 0.6% to EUR1.019 billion, with a notable decrease in low-margin revenue from smartphones and routers.
- EBITDA in the 1&1 mobile network segment showed a negative impact, reflecting increased costs for network rollout and operation.
- The cost of sales increased by EUR32 million, primarily due to higher depreciation and additional costs related to the mobile network segment.
- The consolidated result after tax expense decreased to EUR47 million in Q1 2025 from EUR83 million in Q1 2024, indicating a decline in profitability.
Good morning, ladies and gentlemen. It's our pleasure on behalf of the management board of 1&1 AG, I would like to welcome you to our conference call on the first quarter. During this call, our CFO, Sasha Davis will present the results of the first quarter and how we'll meet the guidance for the 2025 financial years. As always, we're happy taking your question after the presentation.
Thank you. I would now like to hand over to Sascha. Sascha, the floor is yours.
' -
Thank you, Oliver. Good morning, everyone. This is Sascha D'avis, CFO of 1&1 AG. It's a pleasure to welcome you to our call this morning. I would like to give you an update on our performance in the first quarter as well as on the financial results at the end of March.
Let's begin with customer contracts shown on slide number 4. At the end of March, we had 16.35 million contracts in our customer base. Including 12.42 million
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