Telecommunications provider 1&1 AG (1U1.DE) reported Monday weak earnings in its first quarter with slightly lower revenues, while service revenue remained unchanged. Further, the company maintained fiscal 2025 outlook.
In the first quarter, earnings before interest and tax or EBIT declined 38 percent to 73.2 million euiros from last year's 117.9 million euros, due to higher depreciation and amortization, in particular due to the increased number of antenna sites in the 1&1 mobile network.
Earnings per share came to 0.27 euro, down 42.6 percent from 0.47 euro a year ago. Excluding the impact of PPA write-downs, earnings per share amounted to 0.36 euro, compared to 0.53 euro last year.
EBITDA fell 14.5 percent to 155.9 million euros from 182.3 million euros last year, due to higher start-up costs for the 1&1 mobile network as planned.
Revenue in the first quarter declined 0.6 percent to 1.019 billion euros from 1.024 billion euros last year.
Service revenues was unchanged at 821.9 million euros. Low-margin hardware revenue declined 2.9 percent to 196.6 million euros.
Customer contracts edged up 0.3 percent to 16.35 million from 16.30 million a year ago.
Looking ahead, for fiscal 2025, the company continues to expect a stable contract base and service revenue at the previous year's level of 3.303 billion euros.
EBITDA is still expected to decline by around 3.4 percent to around 571 million euros from last year's 590.8 million euros.
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