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1&1:Quarterly Results/2025 Q1: Difference between revisions
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== Earnings call summary == | == Earnings call summary == | ||
[https://finchat.io/company/XTRA-1U1/investor-relations/Q1-2025/ Q1 2025 1&1 earnings call transcript] | [https://finchat.io/company/XTRA-1U1/investor-relations/Q1-2025/ Q1 2025 1&1 earnings call transcript] | ||
=== Customer contracts === | |||
* CFO Sascha D'Avis said the decline in mobile contracts by 20,000 quarter over quarter was in line with their expectations and was due to the ongoing customer migration. | |||
* D'Avis pointed out that the decline in broadband contracts by 20,000 sequentially was driven among other things by the competitive environment but was in line with their expectations as well. | |||
* '''In Q2, they expect to see the same level of net ads as in Q1, maybe a little better (Q&A).''' "In Q2, I expect, in the mobile business, I think more or less the same level of net adds as in Q1, maybe a little bit better than in Q1. As I mentioned before, we are very happy with our migration process," D'Avis said. "So, for the mobile business, it will be maybe a little bit better as in Q1. For the broadband business, I would expect slightly lower net growth as in Q1, but fully in our expectations." | |||
=== Customer migration to own network === | |||
* D'Avis said at the moment they are migrating 50,000 customers per day. | |||
* Due to the migration they are experiencing higher customer churn than usual. | |||
* Migration will be huge in the first, second and third quarter. It will tail off in Q4. | |||
* At the end of Q1, they had migrating 6 million customers to own network (Q&A). | |||
=== Antenna sites === | |||
* '''D'Avis said they currently have 1,000 activated sites, they are adding 200 to 300 sites per quarte and will have 2,000 at the end of the year (Q&A).''' "In Q1, we have in total 1,000 sites on air. And, each quarter we will, add 200 to 300 sites. So in the end of the year, I think we will see 2,000 sites activated," he said. | |||
* '''D'Avis said they will see 25% coverage at the end of the year, but pointed out that it's a tough target''' (Q&A). "We will see 25% coverage at the end of this year. It's a tough target, but we think that we can achieve that.," he said. | |||
=== Q1 2025 EBITDA and CapEx === | |||
* D'Avis said EBITDA in the 1&1 segment of -67 million euros was in line with their expectations. | |||
* D'Avis pointed out that cash CapEx of -27.6 million euros was in line with their expectations. especially the phasing in of the 2024 and 2023 CapEx. | |||
* D'Avis said EBITDA will decrease slightly over the year due to the migration. " This is due to the fact that the national roaming costs and the Vodafone contract are expensed directly. The Telefonica contract, as mentioned before, there were one off costs that we amortize over five years," he said. | |||
* D'Avis pointed out that the CapEx for Q1 2025 is fully in line with their expectations and business plan, especially with regards to phasing in effect from 2024 and 2023 (Q&A). | |||
=== Low-band spectrum === | |||
* D'Avis said there is no change in their comments since the Q4 presentation, adding that they are waiting for offers from other operators (Q&A). | |||
=== Competition === | |||
* D'Avis said they see strong competition through promotions, particularly from Telefonica (Q&A). He said they are offering very attractive offers under their U2O2 portfolio and Ebara plan. | |||
* D'Avis said they are reacting rationally to this competition. They offer attractive tariffs that are competitive but at reasonable prices (Q&A). | |||
* '''D'Avis said the investment for their network expansion will mainly be in the second half of the year (Q&A).''' | |||
* D'Avis pointed out that CapEx is more backloaded (Q&A). "Why is it back loading? Sometimes there are acceptances necessary before the final invoice can be issued or suppliers' invoice are late and so on and so on. So there's a backlog that will be dissolved in the next three quarters. Besides that, the investment for the capacity expansion of our core data centers will be more in the second half of the year," he said. | |||
* D'Avis added that a lot of projects will end in second half. | |||
== Management guidance and analysts estimates == | == Management guidance and analysts estimates == | ||