1&1 with good operating performance in the first 9 months of 2023

• Customer contracts: + 330,000 to 16.11 million
• Revenue: + 2.8 percent to €3,032 million, of which €2,419 million service revenues (+ 1.3 percent)
• EBITDA operational: + 1.6 percent to €584.9 million
• EBITDA: - 6.9 percent to €511.1 million, as a result of increased start-up costs for the 1&1 mobile network as budgeted
• Forecast 2023 confirmed

Montabaur, November 10, 2023 –1&1 AG (ISIN DE 0005545503) was able to increase the number of its customer contracts in 9M 2023 in comparison with 31 December 2022 by 330,000 to 16.11 million. The growth was based on 420,000 new mobile Internet contracts won, whose base stood at 12.10 million at the end of the first nine months of 2023, while the number of broadband lines decreased as expected by 90,000 to 4.01 million in the same period.

Revenue in 9M 2023 rose by 2.8 percent to €3,031.8 million (9M 2022: €2,950.3 million). In this context, high-value service revenue increased by 1.3 percent to €2,418.9 million (9M 2022: €2,386.7 million).

EBITDA (earnings before interest, taxes, depreciation and amortisation) in the first nine months of 2023 reached €511.1 million (9M 2022: €549.0), 6.9 percent below the figure for the comparable prior-year period. This includes a 1.6 percent increase in EBITDA in the “Access” operating segment to €584.9 million (9M 2022: €575.8 million) and budgeted, increased start-up costs according to plan of -€73.8 million for the construction in the “1&1 mobile network” segment (9M 2022: -€26.8 million).

EBIT amounted to €363.7 million (9M 2022: €428.8 million) in the first nine months of 2023, 15.2 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 -€34.5 million as a result of the network start-up at year-end 2022. From 2024, these write-downs are to be offset by successively increasing cost savings or upfront payments for mobile services.

Earnings per share (EPS) decreased by 14.3 percent to €1.44 (9M 2022: €1.68), included therein - €0.14 for the aforementioned depreciation and amortization on investments in the 1&1 mobile network.

Free cash flow amounted to €79.2 million in the first nine months of 2023 (9M 2022: €96.1 million). This includes investments of €123.3 million (9M 2022: €75.4 million), primarily for the construction of the 1&1 mobile 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 for the construction of the 1&1 mobile network 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 9M 2022 vs. 9M 2023

This quarterly statement will be made available on the Company’s home page on November 10, 2023.

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

Montabaur, November 10, 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.