1&1 AG - Confirms revenue guidance for 2021 and upgrades EBITDA guidance from ca. €650m to ca. €670m

- Customer contracts: + 280,000 to 15.11 million

- Revenues: + 2.6 percent to €1,931 million, thereof €1,542 million service revenues (+ 3.0 percent)

- EBITDA: €375.5 million, thereof €336.1 million comparable, operational EBITDA (+ 2.0 percent)

- Revenue forecast confirmed; EBITDA forecast increased to ca.€670m from ca. €650m

Maintal, 04 August 2021 - 1&1 AG (ISIN DE 0005545503) was able to increase the number of customer contracts in comparison with 31 December 2020 by 280,000 to 15.11million contracts in H1 2021. Growth was based on 310,000 new mobile internet contracts, whilst the number of broadband lines decreased in H1 2021 slightly by 30,000 to 4.28 million. The number of broadband lines is expected to remain stable in the second half of the year.

Revenue rose by 2.6 percent to €1,930.7 million in H1 2021 (H1 2020: €1,881.2 million). Service revenue increased in H1 2021 by 3.0 percent to €1,541.7 million (H1 2020: €1,497.0 million).

Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 13.9 % or €45.9 million to €375.5 million. This includes a (out-of-period) positive income of €39.4 million from a retroactive price reduction for the 2020 financial year. 1&1 concluded a long-term national roaming agreement with Telefónica Germany on 21 May, the conditions of which will already apply from 1 July 2020. This agreement regulates the usage of the Telefónica network by 1&1 customers in areas not yet served by 1&1 during the roll-out phase of the new 5G network. Until the network launch, the existing MBA MVNO wholesale contract applies at the same conditions. Precluding the aforementioned effect, comparable operational EBITDA of €336.1 million is 2 % higher as the previous year's level (H1 2020: €329.6 million). Operational EBITDA includes - €14.9 million in start-up costs for preparations for the 5G network roll-out (previous year - €5.6 million).

Earnings per share (EPS) amounted to EUR 1.18. Excluding the (out-of-period) positive earnings effect from the retroactive new wholesale prices (EPS effect: EUR +0.16), operating EPS was at €1.02 (H1 2020: €1.05).

Outlook

The Company confirms its revenue forecast and expects service revenues to increase to ca. €3.10 billion (2020: €3.02 billion). The operating EBITDA (excluding the aforementioned out-of-period return of €39.4 million in connection with the conclusion of the national roaming agreement) is increased to ca. 670 million (old: increase to ca. €650m) (2020: €468.5 million). This forecast includes initial costs for the 5G network rollout of ca. €30 million unchanged.

Performance indicators pursuant to IFRS - comparison H1 2020 v. H1 2021

The intermediate report will be made available on the Company's home page on 05 August 2021.
https://www.1und1.ag/investor-relations-en#meldungen-berichte-praesentationen

Maintal, 04 August 2021

1&1 AG
The Management Board

About 1&1 AG

1&1 AG is a listed telecommunications provider based in Maintal. The company is part of the United Internet AG group. 1&1 offers its customers a comprehensive portfolio of wireless services and broadband access. It also offers attractive bundled products comprising mobile and fixed-network services, as well as value-added applications such as home networking, online storage, video-on-demand, smart home solutions and IPTV. While the brand 1&1 addresses value and premium segments, the Group's discount brands appeal to a price-conscious target groups

Note:

Financial performance indicators such as EBITDA, EBITDA margin, EBIT, EBIT margin or free cash flow are used in addition to the disclosures required by the International Financial Reporting Standards (IFRS) in the annual and interim financial statements of 1&1 AG and in ad hoc reports pursuant to Art. 17 MAR to ensure a clear and transparent presentation of 1&1 AG business development. Information about the use, definition and calculation of these performance indicators is provided on page 42 of the Annual Report 2019 of 1&1 AG.