1&1 with a good start to the year
EQS-News: 1&1 AG / Key word(s): Quarterly / Interim Statement/Forecast
1&1 with a good start to the year
Montabaur, May 10, 2023 –1&1 AG (ISIN DE 0005545503) was able to increase the number of its customer contracts in Q1 2023 in comparison with 31 December 2022 by 90,000 to 15.87 million. The growth was based on 120,000 new mobile Internet contracts won, whose base stood at 11.80 million at the end of the first quarter of 2023, while the number of broadband lines slightly decreased by 30,000 to 4.07 million in the same period.
Revenue in the first quarter 2023 rose by 4.6 percent to €1,021.0 million (Q1 2022: €975.9 million). The increase resulted from higher hardware sales, while service revenue of €788.9 million (Q1 2022: €789.1 million) reached the previous year's level.
EBITDA (earnings before interest, taxes, depreciation and amortisation) in the first three months of 2023 reached €182.1 million (Q1 2022: €187.1), 2.7 percent below the figure for the comparable prior-year period. While EBITDA in the Access operating segment increased again to €201.3 million (Q1 2022: €195.4 million), start-up costs for the 1&1 mobile network increased as planned to -€19.2 million (Q1 2022: -€8.3 million).
EBIT reached €133.4 million (Q1 2022: €146.8 million) in the first three months of 2023, 9.1 percent below the figure for the comparable prior-year period. EBIT now includes increased depreciation and amortization as a result of the start as scheduled of depreciation and amortization of investments for the 1&1 mobile network (-€11.1 million). These write-downs are to be offset by cost savings in mobile wholesale services from Q4 2023 onwards.
Earnings per share (EPS) decreased by 8.6 percent to €0.53 (Q1 2022: €0.58), included therein - €0.04 for the aforementioned depreciation and amortization on investments in the 1&1 mobile communications network.
The Company confirms its forecast FY 2023 and expects unchanged a growth of ca. 500,000 new customer contracts. Service revenue is expected to increase by around 2 percent to ca. €3.23 billion (2022: €3.175 billion) and the EBITDA is expected at ca. €655 million (2022: €693.3 million). The Access segment will contribute a growth of ca. 4 percent to ca. €775million (2022: €745.7 million), whilst in the 1&1 mobile network segment, start-up costs of ca.- €120 million are expected as planned (2022: - €52.4 million). A capital expenditure volume (cash capex) of around €320 million is expected for 2023 (2022: ca. €250 million), primarily for the new mobile communications network (antennas, computers, software, etc.).
Performance indicators pursuant to IFRS — comparison Q1 2022 vs. Q1 2023
This quarterly statement will be made available on the Company’s home page on May 10, 2023.
Montabaur, 10 May 2023
The Management Board
About 1&1 AG
1&1 AG is a listed telecommunications provider domiciled in Montabaur. The Company is a member of the United Internet AG corporate group. 1&1 offers its customers a comprehensive portfolio of mobile and broadband access. Moreover, other portfolio components are attractively bundled mobile and fixed network products and value-added applications such as home networking, online storage, video on demand, smart home solutions or IPTV. While the 1&1 brand is addressing value and premium segments, the Group’s discount brands appeal to price-conscious target customers.
Following the successful participation in the 5G frequency auction, 1&1 as the fourth German network operator will establish the first European-wide fully virtualized mobile network on the basis of the innovative OpenRAN technology.
10.05.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG.
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