Fubotv earnings beat by $0.10, revenue topped estimates
Investing.com -- 1&1 AG reported second-quarter EBITDA of €128 million, falling 5.5% below consensus estimates, reflecting the higher losses that prompted management to issue a profit warning on June 27.
The German telecom company’s mobile subscriber base grew by 20,000 subscribers, outperforming consensus expectations of a 16,000 decline. This growth occurred despite elevated customer churn related to the migration of users from Telefonica (NYSE:TEF) Deutschland to Vodafone (NASDAQ:VOD)’s national roaming network.
Revenue for the quarter reached €988 million, slightly below consensus by 0.1%, while service revenue of €825 million exceeded expectations by 0.4%, showing a year-over-year growth of 0.2% compared to flat growth in the first quarter.
The company reiterated its fiscal year 2025 guidance that had been revised downward in June. Service revenue is expected to remain flat year-over-year, while EBITDA is projected at €545 million, down from the previous target of €571 million. Capital expenditure outlook remains at €450 million, and the total subscriber base is expected to stay stable.
The profit warning issued in June was attributed to higher-than-expected national roaming costs, though the exact factors driving this deviation remain somewhat unclear.
In the fixed-line segment, the company reported a loss of 40,000 subscribers during the second quarter, worse than the consensus estimate of a 20,000 decline.
The company’s parent, UTDI, had previously made a bid at €18.50 per share, which was described as "not adequate from a financial point of view for 1&1 shareholders" in an independent valuation commissioned by the 1&1 board.
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