Q2 2026 1&1 AG Earnings Call Transcript
Key Points
- 1&1 AG (WBO:DRI) reported a 61.1% increase in EBIT to EUR111.3 million in H1 2026, driven by higher EBITDA and lower PPA amortization.
- Free cash flow improved significantly by 50% to EUR167.2 million in H1 2026, up from EUR111.5 million in the prior year.
- The company's network expansion is on track, with household coverage increasing to 34% and a target of 40% by year-end 2026.
- EBITDA guidance for 2026 remains at approximately EUR800 million, with expectations of EUR100 million annual growth in 2027 and 2028.
- The Enterprises and Networks segment is performing better than planned, with EBITDA expected to turn positive in 2026.
- Selling expenses decreased by 17.3% due to the expiration of amortization on the Drillisch customer base, boosting profitability.
- The equity ratio improved to 55.1%, reflecting a solid balance sheet and increased financial stability.
- 1&1 AG (WBO:DRI) lost approximately 150,000 mobile customers in H1 2026, primarily due to price increases and tariff changes in April.
- Higher national roaming costs with Vodafone, due to slower-than-expected capacity growth, negatively impacted gross profit.
- The company faces ongoing uncertainty regarding low-band frequency access, with no resolution in sight and potential compensation unclear.
- Service revenue declined slightly to EUR1.84 billion, reflecting the impact of customer losses and competitive pressures.
- Gross profit in the Consumer and Small Business segment decreased by 1.7% to EUR682.3 million, partly due to increased roaming costs.
- The company expects continued customer losses in Q3 2026, with a return to growth only anticipated in Q4.
- Financial result worsened due to higher variable interest rates, increasing interest expenses on loans.
Hello, ladies and gentlemen.
Welcome, good morning, good afternoon, whatever. On behalf of the board of Eins and Eins, I welcome you to our half year conference 2026.
Our. Board Mr. Domit and Mr. Davis will present the results of the first half of the year and the outlook for the rest of 26 to you and also looking into 27 already after the presentation we are happy to answer your questions thank you and I pass the stage to Mr. Domam thank you Mr. Kyle good afternoon ladies and gentlemen welcome to our. Half year press conference. Mr. Curl has mentioned it. I will present the development of the company in the first half of the year and then my colleague Mr. Davis will give you the financial figures and the outlook of 26 and 27. You know our business. We split it up in two areas consumers and small businesses. This is about mobile contracts for.
Consumers and small companies. We have a broad market assess. Ikeens Alliance is our market main brand and the cooperation with Drillich as well. In
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