EQS-Adhoc: 1&1 Forecast 2022: Revenue target confirmed, earnings increased. Capex needs and customer growth lower.

1&1 Forecast 2022: Revenue target confirmed, earnings increased. Capex needs and customer growth lower.

• Service revenue 2022: Unchanged at 3.2 billion
• EBITDA 2022: increased to ca. 690.0 million (previously expected ca. 671.9 million)
• Subscribers 2022: ca. 350,000 new contracts (previously expected ca. 450,000)
• Cash capex 2022: ca. 250 million (previously expected ca. 400 million)

Montabaur, September 30, 2022 1&1 AG (ISIN DE 0005545503) confirms its forecast for service revenue and increases the forecast for EBITDA in a difficult economic environment. The company expects service revenues to increase to ca. 3.2 billion (2021: 3.1 billion) and however, an increased EBITDA in the amount of ca. 690 million. (2021: 671.9 million). In EBITDA, costs for the construction of the 1&1 mobile network are expected in the amount of approximately -60 million (previously expected -70 million).

The expectation for customer growth is now ca. 350,000 new contracts (previously: ca. 450,000). This includes stronger than expected effects from the amendment to the Telecommunications Act (TKG), which came into force in December 2021. Operating contract growth excluding these effects is expected to be around 600,000 contracts, in line with the previous years level.

Capex requirements for the current fiscal year are expected to amount to ca. 250 million (previously expected ca. 400 million). A further 150 million in cash capex originally expected for 2022 will be carried forward to 2023. This shift of investments to the 2023 financial year is primarily the result of unexpected delays in the provision of antenna sites due to delivery bottlenecks at one expansion partner (1&1 press release dated September 16, 2022). The company's long-term plans are not affected by this.

Montabaur, 30 September 2022

1&1 AG

The Management Board

About 1&1 AG

1&1 AG is a listed telecommunications provider, headquartered in Montabaur. 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 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 45, 46 of the Annual Report 2021 of 1&1 AG.