1&1 Q3 2024 results missed analysts estimates, the company lowered its service revenue guidance for 2024
- 1&1 Q3 2024 revenue fell 3.6% y/y to €1,001 million (analysts estimate: €1,044.9 million), service revenue was flat at €834 million (analysts estimate: €848 million), hardware segment revenue dropped 18% y/y to €168 million (analysts estimate: €196.9 million), EBITDA fell 30% y/y to €136 million (analysts estimate: €172 million) while EPS was €0.34 versus analysts estimate of €0.43.
- Access contracts came in at 16.35 million (analysts estimate: 16.38 million), mobile contracts 12.38 million (analysts estimate: 12.40 million) while broadband contracts were 12.97 million (analysts estimate: 3.98 million).
- 1&1 said Q3 2024 results were impacted by the consequences of the network outage in Q2 and continued intense competition in the mobile segment.
- The company added that the network outage delayed the launch of its two additional core data centres but they went live on November 2024, allowing for resumption of customer migration.
- 1&1 lowered its 2024 service revenue estimate to €3.31 billion from €3.33 billion but confirmed its guidance for EBITDA at the access segment (€860 million) and at the 1&1 startup (-€174 million) while pointing out that broadband contracts in Q4 should come in at the same level as in Q3 while mobile contracts in Q4 should faster than in Q3.
- The company said they are seeing solid progress in the construction of their network, pointing out that they had 2,016 antenna site at the end of Q3.
- The shares are down 1% pre-market.