Q3 2024 1&1 AG Earnings Call Transcript
Key Points
- 1&1 AG (WBO:DRI) reported a stable customer base with 16.35 million contracts, including an increase of 20,000 mobile internet contracts in Q3 2024.
- Service revenue grew by 2.5%, indicating a positive trend despite overall revenue decline.
- EBITDA in the access segment increased by 7.7% to EUR 630 million in the first nine months of 2024.
- The company is making significant progress in its mobile network rollout, with 22 out of 24 decentralized edge data centers completed.
- 1&1 AG (WBO:DRI) expects a stronger increase in mobile business in Q4 2024 compared to Q3 2024.
- Total revenue decreased by 0.5% to EUR 3.17 billion, with a significant 12.1% drop in other revenue from smartphones and routers.
- The company experienced a network outage in May, impacting net growth and leading to reduced migrations.
- Aggressive competition in the German market has negatively affected subscriber trends and growth.
- Cost of sales increased, leading to a drop in gross profit from EUR 889 million in 2023 to EUR 826 million in 2024.
- The company faces challenges in meeting its 2025 network deployment obligations, with ambitious targets for population coverage.
Good morning, ladies and gentlemen. A warm welcome to all of you on behalf of the management Board of 1&1. I would like to welcome you to our conference call on the third quarter. During this call, our CFO, Markus Huhn will present the results and the status of our 1&1 mobile network, Of course, followed by the guidance for the financial year. As always, we will take your questions after the presentation. Thank you very much.
Would I like to hand over to Markus. Markus, the floor is yours.
Thanks, Oliver. Good morning. This is Markus Huhn speaking, CFO of 1&1 AG. Warm welcome to our call this morning. As Oliver has mentioned, I would like to give you an update on our performance in the third quarter as well as on the financial results as of end of September.
Let us start with the customer contracts on slide number 4. As end of September, we had 16.35 million contracts in our base, 12.38 million
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