Q2 2026 earnings calls key insights and overall assessment
- Dommermuth reiterated that they don’t plan to sell 1&1(Notion).
- Dommermuth pointed out that 1&1 data volume is growing faster than that of Vodafone, hence higher roaming costs than expected, but are expected to converge in future (Notion).
- Dommermuth said they lost fewer customers in May and June, expect Q3 customer losses to be lower than in Q2 and then turn positive in Q4 (Notion).
- Although they have reached 34% coverage of German households (according to official measurement by BNetzA), they don’t reach 34% of traffic (Notion).
- They now have 2,500 base stations, targeting 3,000 by the end of the year and 9,000-10,000 by 2030 (Notion).
- They expect second half EBITDA to be better due to more monitization of 1&1 network and IONOS contracts (Notion).
Overall assessment
Overall, revenue and earnings were in line with expectations. I also like that 1&1 is increasingly focusing on higher-value customers, as evidenced by the retirement of tariffs priced below EUR 6.00.
My main concern is the full-year 2026 EBITDA guidance of EUR 1,450 million. In my view, the guidance appears somewhat optimistic given that national roaming costs are expected to remain elevated and IONOS is likely to incur higher marketing expenses to support its AI products. As a result, my 2026 EBITDA estimate is around EUR 20 million lower than the company’s guidance.