MONTABAUR (dpa-AFX) - Telecommunications provider 1&1
earned significantly less in the first quarter of 2025 than in the previous year due to higher start-up costs for its mobile network. Earnings before interest, taxes, depreciation, and amortization (EBITDA) fell by almost 15 percent year-on-year to just under 156 million euros, as the United Internet subsidiary announced on Monday. Bottom line, earnings per share amounted to 27 cents, a decline of almost 43 percent compared to the previous year. Higher depreciation and amortization, primarily due to more antenna locations, also had a negative impact, the company said.
Revenue fell by 0.6 percent to 1.019 billion euros in the first three months to the end of March. Service revenues remained at the previous year's level. Meanwhile, the number of customer contracts fell by 40,000 to 16.35 million compared with the end of 2024. 1&1 continues to forecast a stable contract portfolio for 2025 and service revenue at the previous year's level of around 3.3 billion euros. However, earnings before interest, taxes, depreciation, and amortization (EBITDA) are expected to decline by around 3.4 percent to approximately 571 million euros.
The further decline in operating profit expected for 2025 is also related to the ongoing switch to the network of partner Vodafone. Unlike the contract with the former partner Telefonica (O2), the roaming agreement with the British mobile operator does not provide for one-off payments every five years, which then have to be written off. Instead, the use of the Vodafone network is recorded directly in the input costs. In addition, 1&1 estimates expenses of around €100 million for the switchover of customers and for network advance payments, which will no longer be incurred after completion in 2026. /mne/stk
