Vodafone’s Q3 2025 earnings signals that 1&1 could have added a lower than expected number of customers in Q4 2024
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In its Q3 2025 (quarter ended December 2024) earnings, Vodafone said the pace of migration of 1&1 customers to their network is progressing slower than expected partly due to stiff competition.
“During Q3, 1&1 began migrating their customers onto our network as part of our long-term national roaming agreement, however this has been slower than expected. We expect the migration to ramp-up in the following quarters and reach full run-rate during H2 FY26,” Vodafone said.
“So if I start from pricing and the overall competition environment in Germany, the answer to your question on the numbers is very simply back to what I said earlier, which is it’s big moving elements, both 1&1 in terms of the pace of the migrations and, of course, mobile pricing,” Vodafone CEO Margherita Della Valle said in the earnings call.
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In the call, analyst Joshua Mills of BNB Paribas flagged Deutsche Telecom which recently reduced prices by 20% through March.
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Vodafone’s service revenue in Germany declined 6.4% y/y to €2.7 billion driven by a 3.8% impact from the TV regulation and a lower broadband customer base and lower mobile average revenue per user (ARPU). Analysts were expecting service revenue to decline by 5.3%.