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

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

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)