Q2 2025 1&1 AG Earnings Call Transcript
Key Points
- 1&1 AG (WBO:DRI) maintained a stable contract base with 12.44 million mobile contracts, despite a slight decrease in customer contracts due to migration.
- The company won national and regional competitions for network quality and customer satisfaction, highlighting its strong service performance.
- 1&1 AG operates the first open RAN network in Europe, which is fully virtualized and efficient, using 10% to 30% less power than comparable networks.
- The company has a robust ecosystem with over 100 partners, with 50% of suppliers from Germany and none from China, ensuring a diversified supply chain.
- 1&1 AG expects major cost savings in the mobile segment next year, with anticipated savings of about EUR100 million due to completed migrations and reduced roaming costs.
- Revenue for the first half of 2025 decreased by 0.5% compared to the previous year, with a decline in hardware revenue by 3%.
- The company faced higher-than-expected roaming costs due to slower network growth, impacting EBITDA negatively.
- 1&1 AG experienced a decrease in gross profit by 3%, primarily due to increased input costs in the Landline segment.
- The company is not satisfied with its current revenue levels and faces challenges in retaining customers during network migrations.
- There are ongoing issues with Vantage Towers regarding the provision of antenna sites, which has led to delays and potential compensation claims.
Hello and welcome, ladies and gentlemen. On behalf of the Board of 1&1 AG, I would like to warmly welcome you to our semi-annual conference. In this context, our Board Members, Mr. Dommermuth and Mr. D'Avis, will speak about the figures for the first half of the year and will be happy to take your questions after the presentations as usual. Thank you very much, and I will give the floor to Mr. Dommermuth now.
Well, good afternoon, ladies and gentlemen. Let me present the figures of the first half of the year and the status of the development of the 1&1 Mobile Network. And after that, Mr. D'Avis will present the figures of the first half of the year to you.
We are active in the field of broadband connections and mobile connections. At the end of the first half of the year, we had 3.89 million broadband connections. We have fiber optic connections and VDSL and FTTH complete.
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