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1&1:Premium Brands Versus Discount Brands: Difference between revisions
→Which are the premium brands and discount brands
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=== Which are the premium brands and discount brands === | === Which are the premium brands and discount brands === | ||
1&1 AG has two brands, premium brands and discount brands. Premium brands are offered by 1&1 and they target high value clients. On the other hand, discound brands appeal to price-conscious customers. Discount brands are offered by its subsidiary, Drillisch Online Gmbh<ref>https://www.1und1.ag/the-company</ref>. This subsidiary was formed in 2019 as Drillisch Telecom AG<ref>https://en.wikipedia.org/wiki/1%261_AG#cite_note-19</ref>. Drillisch Online Gmbh and Yourfone(premium brand and mobile phone seller) were Drillisch's core business before the merger. The former comprised of Smartmobile.de(premium brand), Maxxin, sim.de, winsin, deutschlandSim and Simply<ref>https://ircenter.handelsblatt.com/download/companies/drillisch/Annual%20Reports/DE0005545503-JA-2015-EQ-E-00.pdf</ref>. After the merger, no other subsidiary was added to Drillisch Online Gmbh<ref>https://imagepool.1und1.ag/v2/download/berichte/2018-03-22_Drillisch_GB_2017_ENGLISH.pdf</ref>. Before the merger, Drillisch was considered a low-cost mobile phone operator as it appealed to customers on a tight budget while 1&1 was a premium brand<ref>https://www.reuters.com/article/us-drillisch-strategy-idUSKBN19E1JJ</ref>. '''During the merger, 3.4 million mobile customers came from Drillisch (based on 2016 numbers) while 1&1 had 4.3 million customers and 4.4 million DSL customers'''<ref>https://imagepool.drillisch.de/v2/download/uebernahmeangebot/2017-05-12_Project_Scotch_Kapitalmarkt_Presentation.pdf</ref>. Therefore, assuming all discount brands came from Drillisch, it means around 4.5 million customers(or less) of 1&1 AG (28% of 15.87 million in Q1 2023) belong to discount brands. | 1&1 AG has two brands, premium brands and discount brands. Premium brands are offered by 1&1 and they target high value clients. On the other hand, discound brands appeal to price-conscious customers. Discount brands are offered by its subsidiary, Drillisch Online Gmbh<ref>https://www.1und1.ag/the-company</ref>. This subsidiary was formed in 2019 as Drillisch Telecom AG<ref>https://en.wikipedia.org/wiki/1%261_AG#cite_note-19</ref>. Drillisch Online Gmbh and Yourfone(premium brand and mobile phone seller) were Drillisch's core business before the merger. The former comprised of Smartmobile.de(premium brand), Maxxin, sim.de, winsin, deutschlandSim and Simply<ref>https://ircenter.handelsblatt.com/download/companies/drillisch/Annual%20Reports/DE0005545503-JA-2015-EQ-E-00.pdf</ref>. After the merger, no other subsidiary was added to Drillisch Online Gmbh<ref>https://imagepool.1und1.ag/v2/download/berichte/2018-03-22_Drillisch_GB_2017_ENGLISH.pdf</ref>. Before the merger, Drillisch was considered a low-cost mobile phone operator as it appealed to customers on a tight budget while 1&1 was a premium brand<ref>https://www.reuters.com/article/us-drillisch-strategy-idUSKBN19E1JJ</ref>. '''During the merger, 3.4 million mobile customers came from Drillisch (based on 2016 numbers) while 1&1 had 4.3 million customers and 4.4 million DSL customers'''<ref>https://imagepool.drillisch.de/v2/download/uebernahmeangebot/2017-05-12_Project_Scotch_Kapitalmarkt_Presentation.pdf</ref>. Therefore, assuming all discount brands came from Drillisch, it means around 4.5 million customers(or less) of 1&1 AG (28% of 15.87 million in Q1 2023) belong to discount brands. | ||
=== Growth rate of premium brands and discount brands === | === Growth rate of premium brands and discount brands === | ||
Before the merger, year-over-year revenue growth rates of Drillisch was highly volatile. However, between 2010 and 2014, revenue grew by -3.26% on average. United Internet did not provide revenue breakdown from various segments but it gave revenue from access segment. Access segment comprised brands such as 1&1, GMX, WEB.DE and 1&1 Versatel. 1&1 Versatel was consolidated by United Internet in Q4 2014. Excluding revenue from 1&1 Versatel, access segment revenue grew by 14.31% year-over-year on average between 2010 and 2014. 1&1 revenue probably accounted for the largest portion of that access segment revenue given that the proportion of its subscriber numbers between 2014 and 2016 was 96% on average<ref>https://docs.google.com/spreadsheets/d/19tRxD_G1ipJrUBmMneMMzzAtKXxMS_1hGGYcWrvFD7E/edit#gid=1380547736</ref>. | Before the merger, year-over-year revenue growth rates of Drillisch was highly volatile. However, between 2010 and 2014, revenue grew by -3.26% on average. United Internet did not provide revenue breakdown from various segments but it gave revenue from access segment. Access segment comprised brands such as 1&1, GMX, WEB.DE and 1&1 Versatel. 1&1 Versatel was consolidated by United Internet in Q4 2014. Excluding revenue from 1&1 Versatel, access segment revenue grew by 14.31% year-over-year on average between 2010 and 2014. 1&1 revenue probably accounted for the largest portion of that access segment revenue given that the proportion of its subscriber numbers between 2014 and 2016 was 96% on average<ref>https://docs.google.com/spreadsheets/d/19tRxD_G1ipJrUBmMneMMzzAtKXxMS_1hGGYcWrvFD7E/edit#gid=1380547736</ref>. | ||