United Internet:Quarterly Results/2025 Q2: Difference between revisions

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 == Q2 2025 1&1 Earnings Call Summary ==
 [https://fiscal.ai/company/XTRA-1U1/investor-relations/Q2-2025/ Q2 2025 1&1 Earnings Call Transcript] | [https://edge.media-server.com/mmc/p/mg32qrua/lan/en/ Q2 2025 1&1 Webcast Call]
+==== Customer contracts ====
+* Dommermuth said growth in customer contracts is being offset by customer losses due to customer migration from O2 to 1&1 network.
+* Dommermuth said reasons being given by customers cancelling the contract include Vodafone having a poor connection and not using it anymore.
+==== Outlook ====
+* '''CFO Davies said second half EBITDA in the access segment will be a bit lower than in the second half due to the higher costs with Vodafone due to slower network growth (Q&A).'''
+* '''Dommermuth said they will return to a little bit of growth in the third and fourth quarter.'''
+==== Q2 results ====
+* Davies said the impact of increased costs with Vodafone was felt more in the second quarter than in the first (Q&A).
+==== National roaming costs ====
+* '''Dommermuth said if the network grows more slowly than expected, they will have to buy more capacity from Vodafone.'''
+==== Low-band frequency ====
+* '''Dommermuth said they don't have an offer yet (Q&A).'''
+* '''Dommermuth said competitors will likely delay the offer as long as they can and their offers will be unacceptable initially (Q&A).'''
+* '''Dommermuth said how fast they get it depends on how quick BnetzA intervenes (Q&A).'''
+* Dommermuth said BnetzA has introduced reporting procedure that enables them to see the steps being taken in the negotiations (Q&A).
+* Dommermuth said it's correct that by the end of the year the frequencies have to be given to them (Q&A).
+* '''Dommermuth said they do assume that by 1st January 2026, they will deliver the 25% coverage (Q&A).'''
+* '''Dommermuth said they currently have 5,800 sites under development ( active:1,200 and inactive: 3,600) (Q&A).'''
+==== Network ====
+* They have 281 far edge data centers and they need 500.
+* They have 1,200 active antenna sites and more than 4,000 being developed.
+* They can only have a maximum of 10 kms of fiber optic cable in order to have no latencies.
+==== Competition ====
+* Dommermuth said business continue to be difficult and they don't want to reduce prices to buy back market share.
+* Dommermuth said Telefonica reduced price a couple of months ago quite strongly and everybody is thinking how to handle that (Q&A).
+==== Mobile consolidation in Germany ====
+* Dommermuth said newspapers indicate the incumbents are pushing for consolidation in Europe i.e reduce the number of operators to three from four (Q&A).
+* Dommermuth said he doesn't think they are currently capable of participating in any consolidation beyond Germany (Q&A).
+==== Network savings costs ====
+* Dommermuth said with the low band frequency, they can get additional gigabytes which are cheaper than the gigabytes they buy via national roaming today (Q&A).
+* '''Dommermuth said savings will also depend on the handover direction. Currently, if the customer switch to Vodafone network, they don't move back. However that will change, allowing customers to switch back to 1&1 (Q&A).'''
+* Dommermuth said they are currently building antennas in high and low traffic regions. If they complete antennas in high traffic regions earlier, cost savings will be higher (Q&A).
+* They see major cost savings next year because migration will be over and will save on international roaming costs (Q&A).
+* They will save EUR 100 million next year associated with customer migration (Q&A).
+==== Customer migration ====
+* Dommermuth said they are still remaining with only 2 million customers to migrate from O2 to own network.
+* Dommermuth said they will conclude customer migration in the next months.
+==== United Internet acquisition of 1&1 shares ====
+* They announce the voluntary public takeover because they were offered several large packages and they saw it as an opportunity to improve 1&1 share (Q&A).
+* '''Dommermuth said if they are offered more packages, they will buy them but he won't acquire them via the stock exchange (Q&A).'''
+* '''Dommermuth said they don't have a target of the shares to acquire i.e. if they wanted to have a squeeze-out they would offer a different offer (Q&A).'''
+* '''Dommermuth said his comments on the acquisition reflect today's view and that a few years from now, things can be different (Q&A).'''
+==== Dispute with Vantage Towers ====
+* Dommermuth said they want Vantage Towers to fulfill their obligations and not give them cash (Q&A).
+* Dommermuth also said they are seeking compensation from Vantage Towers but the first thing is to get the sites as soon as possible (Q&A).
+==== Network quality ====
+* Dommermuth said they have excellent network quality, that they once again won mTest competition.
 == Management guidance and analysts estimates ==