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1&1 Drillisch Aktiengesellschaft: Improved Telefónica-offer on national roaming and MBA MVNO services; EU Commission's analysis completed

·4-min read

1&1 Drillisch Aktiengesellschaft / Key word(s): Contract/Strategic Company Decision
1&1 Drillisch Aktiengesellschaft: Improved Telefónica-offer on national roaming and MBA MVNO services; EU Commission's analysis completed

05-Feb-2021 / 17:57 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

1&1 Drillisch AG: Improved Telefónica-offer on national roaming and MBA MVNO services; EU Commission's analysis completed

Maintal, 5 February 2021. Drillisch Online GmbH, a wholly-owned subsidiary of 1&1 Drillisch AG, and Telefónica Germany GmbH & Co. OHG (″Telefónica") have long been in negotiations regarding the conclusion of a national roaming agreement based on the commitments of Telefónica under the merger clearance decision of the EU Commission regarding the merger with E-Plus. The EU Commission supervises the compliance of Telefónica with these commitments.

In October 2020, Telefónica made a, from Telefónica's perspective, final offer to 1&1 Drillisch on key framework conditions and prices for national roaming. The prices offered shall also apply retroactively from July 2020 to the current MBA MVNO agreement. While Telefónica has been charging consistently high advance service prices under the MBA MVNO agreement since July 2020, Telefónica's offer is based on the price mechanisms of the first five years of the MBA MVNO agreement. In particular, it provides for annually decreasing data prices that were lower than the prices currently charged under the MBA MVNO agreement.

After completion of its analysis, the EU Commission today communicated to 1&1 Drillisch its assessment that the offer submitted by Telefónica in October 2020 was not fully in line with Telefónica's commitments under the EU merger clearance decision and that the offer has to be improved by Telefónica. Thereupon, Telefónica today made an improved offer to 1&1 Drillisch. The improved offer can be accepted by 1&1 Drillisch until 19 February 2021.

1&1 Drillisch will examine whether it is in the interest of the company to accept Telefónica's new offer. Should 1&1 Drillisch decide to accept the offer, the framework conditions and prices offered by Telefónica would then have to be transferred into a national roaming agreement and the application of the new, annually decreasing prices also on MBA MVNO services would have to be regulated with retroactive effect for the period as of July 2020 from the beginning of national roaming.

The conclusion of an agreement, which Telefónica's offer expects until approx. mid of May 2021, would have a positive earnings effect of approx. 30 million Euro for 1&1 Drillisch in the fiscal year 2020, which would be booked as an out-of-period return in the fiscal year 2021. In addition, an agreement on national roaming would constitute an essential prerequisite for 1&1 Drillisch's envisaged rollout of a high-performance 5G network.

The EU Commission's assessment, which has now been communicated, has no significance for the price adjustment procedures initiated by 1&1 Drillisch under the MBA MVNO agreement. In these procedures, 1&1 Drillisch demands from Telefónica significant retroactive reductions of the advance service prices under the MBA MVNO agreement.

Maintal, 5 February 2021

1&1 Drillisch Aktiengesellschaft
The Management Board

Oliver Keil
Head of Investor Relations

Financial performance indicators such as EBITDA, EBITDA margin, EBIT, EBIT margin or free cash flow are used in addition to the disclosures required by the International Financial Reporting Standards (IFRS) in the annual and interim financial statements of 1&1 Drillisch AG and in ad hoc reports pursuant to Art. 17 MAR to ensure a clear and transparent presentation of 1&1 Drillisch's business development. Information about the use, definition and calculation of these performance indicators is provided on page 37 of the Annual Report 2019 of 1&1 Drillisch AG.

Disclaimer: This report contains statements regarding the future which are based on the current assumptions and projections of the 1&1 Drillisch AG management. Various risks, uncertainties and other factors, both known and unknown, can cause actual developments, especially in the results, financial position, and the business of our Company, to deviate substantially from the projections about the future as they are shown here. The Company does not undertake any obligation to update such future-oriented statements and to adapt them to future events or developments.

05-Feb-2021 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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1&1 Drillisch Aktiengesellschaft

Wilhelm-Röntgen-Straße 1-5

63477 Maintal



+49 (0) 6181 - 412 218


+49 (0) 6181 - 412 183










Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange

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