1&1 with a good start to the year

• + 40,000 Customer contracts to 16.30 million
• + 4.2 percent service revenues to €821.9 million
• + 11.6 percent EBITDA (operational) to €224.7 million
• + 0.1 percent EBITDA (total) to €182.3 million, despite increased start-up costs for the 1&1 mobile network
• Forecast 2024 confirmed

Montabaur, 8 May 2024 –1&1 AG (ISIN DE 0005545503) was able to increase the number of its customer contracts in Q1 2024 in comparison with 31 December 2023 by 40,000 to 16.30 million. The growth was based on 40,000 new mobile Internet contracts won, whose base stood at 12.29 million at the end of the first quarter of 2024. Broadband lines remained stable at 4.01 million.

In the first quarter, the high-margin service revenue rose by 4.2 percent to €821.9 million (Q1 2023: €788.9 million) whilst low-margin hardware revenue declined by -12.8 percent to €202.5 million (Q1 2023: 232.1 million). Overall, revenue in the first quarter 2024 rose by 0.3 percent to €1,024.4 million (Q1 2023: €1,021.0 million).

While EBITDA in the Access operating segment increased in Q1 2024 by 11.6 percent to €224.7 million (Q1 2023: €201.3 million), start-up costs for the 1&1 mobile network increased as planned to -€42.4 million (Q1 2023: -€19.2 million). Despite these higher start-up costs, EBITDA increased by €0.2 million to €182.3 million (Q1 2023: €182.1), €0.2 million above the figure for the comparable prior-year period.

Due to increased depreciation and amortisation, in particular as a result of the launch of mobile services in the 1&1 mobile network at the end of 2023 in the amount of -€64.4 million (Q1 2023: -€48.7 million), EBIT declined to €117.9 million (Q1 2023: €133.4 million). As a result, earnings per share (EPS) in Q1 2024 came to €0.47 (Q1 2023: €0.53).

The investment volume (cash capex) amounted due to a phasing effect to €10.1 million (Q1 2023: €40.2 million).

Forecast 2024

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 (2023: €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 (2023: - €132.4 million). The investment volume (cash capex) is expected to increase by approx. 28 percent to around €380 (2023: €295.6 million).

Performance indicators pursuant to IFRS — comparison Q1 2023 vs. Q1 2024

This quarterly statement will be made available on the Company’s home page on 8 May 2024.

Montabaur, 8 May 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 corporate 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 mobile communications portfolio, broadband connections are offered which are mostly based on 1&1 Versatel's Germany-wide fibre-optic transport network and on regional networks of city carriers and Deutsche Telekom.

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