Financial Performance
1&1 AG reported nine‑month revenue of €3,401.8 million, a 1.2 % increase year‑on‑year from €3,360.3 million. Service revenue fell 1.2 % to €2,712.2 million from €2,745.7 million. Comparable operating EBITDA rose 11.4 % to €593.3 million versus €532.8 million a year earlier. However, a non‑recurring €60.0 million expense linked to a transformation and restructuring programme at 1&1 Versatel reduced EBITDA to €533.3 million for the quarter. Comparable operating EBIT surged 74.8 % to €179.3 million from €102.6 million YoY, and operating earnings per share climbed to €0.30 from €0.06 in the prior year; when the restructuring costs are included, EPS was €0.07.
Contract Portfolio
Mobile internet contracts declined by 240,000, leaving a total of 12.24 million, primarily because the company discontinued low‑cost tariffs and reduced data allowances in high‑performance plans in April. Broadband contracts grew by 20,000 to reach 3.86 million.
Market Reaction
The share price slipped approximately 1 % following the release of the nine‑month results.
Outlook and Capital Allocation
For fiscal 2026, 1&1 AG expects service revenue to be flat at €3,661.8 million, matching the prior‑year level. The EBITDA guidance has been revised down to roughly €740 million, reflecting the Versatel restructuring expenses, although the company still anticipates comparable operating EBITDA of about €800 million. Cash capital expenditure is projected between €500 million and €550 million, down from €652 million in 2025. For 2027 and 2028, the firm foresees operating EBITDA rising by roughly €100 million each year, with cash capex remaining at levels similar to 2026.
Investment Activity
Investment volume for the nine‑month period amounted to €359.3 million, a decline from €437.4 million in the comparable prior year.