Germany's 1&1 2025 EBITDA falls 9% as roaming costs rise

1&1 AG

19/03/2026 06:40

((This story was generated using AI and automation, please see
disclaimer https://bit.ly/rtrsnai))
    
    Overview
  
    * Germany telecom provider's 2025 service revenue rose 1.8% while EBITDA fell 9% yr/yr
    * EPS dropped 22% in 2025 as higher roaming costs weighed on profit
    * Company expects 2026 EBITDA to rise to about €800 mln on stable service revenue

    
    Outlook
  
    * 1&1 expects 2026 service revenue at previous year's level of €3,661.8 mln
    * Company forecasts 2026 EBITDA of about €800 mln
    * 1&1 expects operating EBITDA to grow by about €100 mln per year in 2027 and 2028

    
    Result Drivers
  
    * HIGHER ROAMING COSTS - Co said increased wholesale costs for national roaming, especially after switching from Telefónica to Vodafone, drove EBITDA decline
    * SLOWER NETWORK CAPACITY GROWTH - Unexpected increase in national roaming costs resulted from slower-than-expected capacity growth on Vodafone network
    * BROADBAND CONTRACT LOSSES - Co reported a decline of 110,000 broadband connections, as expected, impacting overall contract base

    
Company press release:  ID:nEQ8qB1kHa 
    
    Key Details
  
                               
                               
 Metric    Beat/Mis  Actual    Consensu
           s                   s
                               Estimate
                               
                               
 FY                  EUR 4.14   
 Revenue             bln       
 FY EPS              EUR 0.94   
 FY                  EUR        
 EBITDA              537.50    
                     mln       
    
    Analyst Coverage
  
    * The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"
    * The average consensus recommendation for the wireless telecommunications services peer group is "hold"
    * Wall Street's median 12-month price target for 1&1 AG is €24.00, about 6% above its March 18 closing price of €22.65
    * The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 20 three months ago

    
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)