1&1 with successful fiscal year 2023

1&1 with successful fiscal year 2023

 

• Customer contracts: +480,000 to 16.26 million
• Revenue: + 3.4 percent to €4,097 million, thereof €3,243 million service revenues
• EBITDA: - 5.7 percent to €653.8 million, due to the expected and planned increase in start-up costs for the 1&1 mobile network
• Forecast 2024: ca. 4 % higher service revenue, ca. 10 % higher EBITDA

 

Montabaur, March 21, 2024 – 1&1 AG (ISIN DE 0005545503) was able to increase the number of its customer contracts in 2023 in comparison with 31 December 2022 by 480,000 to 16.26 million. The growth was based on 570,000 new mobile Internet contracts won, whose base stood at 12.25 million at the end of 2023, while the number of broadband lines decreased as expected by 90,000 to 4.01 million in the same period. The decline is the result of developments in the first three quarters. As expected, the number of broadband connections remained stable in the fourth quarter.

Revenue rose in 2023 by 3.4 percent to €4,096.7 million (2022: €3,963.7 million). In this context, high-value service revenue increased by 2.1 percent to €3,243.2 million (2022: €3,175.4 million).

EBITDA 2023 (earnings before interest, taxes, depreciation and amortisation) at €653.8 million (2022: €693.3) is in line with the company's forecast. EBITDA includes an increase of 5.4 percent in the “Access” operating segment to €786.2 million (2022: €745.7 million) as well as scheduled start-up costs of -€132.4 million for the construction in the “1&1 mobile network” segment (2022: -€52.4 million).

EBIT amounted to €455.8 million (2022: €534.9 million) in 2023, as expected 14.8 percent below previous year's figure. For the first time, it includes noteworthy depreciation on investments for the 1&1 mobile network in the amount of -€47.3 million (2022: - €0.09 million) as a result of the network start at the end of 2022. This amortization will continue to increase in the coming years. They will be offset by successively increasing cost savings for advance mobile services. 

Earnings per share (EPS) decreased by 13.9 percent to €1.79 (2022: €2.08), included therein - €0.19 for the aforementioned depreciation and amortization on investments in the 1&1 mobile network.

 

Forecast

For the financial year 2024, the company confirms its forecast and expects further growth in service revenue of ca. 4 percent to ca. €3.37 billion (2023: €3.243 billion). EBITDA is expected to increase by 10 percent to ca. €720 million (2023: €653.8 million). The "Access" segment will contribute a growth of 12 percent to ca. €880 million (2022: €786.2 million) whilst the start-up costs for the construction of the 5G network in the "1&1 Mobile Network" segment are expected to increase only moderately to ca. - €160 million (2022: - €132.4 million). A capital expenditure volume (cash capex) will increase by approx. 28% to around €380 million is expected for 2024 (2023: €295.6 million).

Based on the figures for 2023, the Management Board and Supervisory Board will propose an unchanged dividend of €0.05 per share for the fiscal year 2023 (prior year: €0.05) at the Annual Shareholders' Meeting on May 16, 2024. This proposal is oriented to the minimum dividend required by Section 254 (1) Stock Corporation (Aktiengesetz; AktG). Assuming 176.3 million shares entitled to dividend (as per 31/12/2022), this would result in a total disbursement of €8.8 million for fiscal 2022.

 

Performance indicators pursuant to IFRS — comparison 2023 vs. 2022

in €m 2022 2023 Veränderung Revenue
thereof service revenue 3,963.7
3,175.4 4,096.7
3,243.2 +3.4 %
+2.1 % EBITDA
thereof Segment Access
thereof Segment 1&1 Mobil Network 693.3
745.7
-52.4 653.8
786.2
-132.4 -5.7 %
+5.4 %
   – EBIT
thereof Segment Access
thereof Segment 1&1 Mobil Network 534.9
588.2
-53.3 455.8
635.5
-179.7 -14.8 %
+8.0 %
   –         Profit per share in € 2.08 1.79 -13.9 %         Customer contracts in million 15.78 16,26 +3.0 %

 

The annual report will be made available on the Company’s home page on March 21, 2024.

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

 

Montabaur, 21 March 2024

 

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 group.

1&1 is the first network operator in Europe to operate a fully virtualised mobile network based on innovative Open RAN technology. In addition to a comprehensive portfolio of mobile communications products, the Company offers broadband lines, most of which are based on 1&1 Versatel’s Germany-wide fibre optic transport network and added-value applications such as home networking/smart home, online storage, video-on-demand and IPTV.

While the 1&1 brand addresses value and premium segments, the Group’s discount brands appeal to price-conscious target groups.