1&1 with a good first half-year, forecast for 2023 confirmed

• Customer contracts: + 180,000 to 15.96 million
• Revenue: + 2.1 percent to €1,993.1 million, service revenues of €1,584.6 million slightly up on previous year
• EBITDA operational: + 2.2 percent to €392.8 million
• EBITDA: - 4.4 percent to €352.0 million, as a result of increased start-up costs for the 1&1 mobile network
• Forecast 2023 confirmed

Montabaur, August 3, 2023 –1&1 AG (ISIN DE 0005545503) was able to increase the number of its customer contracts in H1 2023 in comparison with 31 December 2022 by 180,000 to 15.96 million. The growth was based on 230,000 new mobile Internet contracts won, whose base stood at 11.91 million at the end of the first half of 2023, while the number of broadband lines decreased by 50,000 to 4.05 million in the same period.

Revenue in H1 2023 rose by 2.1 percent to €1,993.1 million (H1 2022: €1,952.0 million). The increase resulted mainly from higher hardware sales, while service revenue increased by 0.2 percent to €1,584.6 million (H1 2022: €1,581.9 million).

EBITDA (earnings before interest, taxes, depreciation and amortisation) in the first six months of 2023 reached €352.0 million (H1 2022: €368.2), 4.4 percent below the figure for the comparable prior-year period. This includes an 2.2 percent increase in EBITDA in the “Access” operating segment to €392.8 million (H1 2022: €384.3 million) and increased start-up costs according to plan for the construction in the 1&1 mobile network segment of -€40.8 million (H1 2022: -€16.1 million) as planned.

EBIT amounted to €254.1 million (H1 2022: €287.7 million) in the first six months of 2023, 11.7 percent below the figure for the comparable prior-year period. For the first time, it includes depreciation and amortization on investments in the amount of -€22.5 million as a result of the network start-up at year-end 2022. These write-downs are to be offset by cost savings in mobile wholesale services from Q4 2023 onwards.

Earnings per share (EPS) decreased by 9.7 percent to €1.02 (H1 2022: €1.13), included therein - €0.09 for the aforementioned depreciation and amortization on investments in the 1&1 mobile communications network.

Forecast 2023

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. €775 million (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).

Performance indicators pursuant to IFRS — comparison H1 2022 vs. H1 2023

This quarterly statement will be made available on the Company’s home page on August 3, 2023.

https://www.1und1.ag/investor-relations-en#meldungen-berichte-praesentationen

Montabaur, 3 August 2023

1&1 AG

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.