Reviewed listing: XETR:1U1 · Analysis dated Nov 01, 2026
It has not been confirmed whether the basis of this analysis still holds today. Read it as a dated earlier assessment; it does not establish a current buying opportunity.
How does the company make money?
1&1 sells mobile plans and home internet connections to consumers and smaller businesses, earning most of its revenue from monthly fees and device sales. While the company is building its own mobile and fiber-optic networks, it also uses the Vodafone network.
What supports the business?
Comparable earnings before interest, taxes, depreciation, and amortization rose in the first half of 2026 from 364.2 to 382.7 million euros. This comparison includes 1&1 Versatel in the prior-year baseline and comes alongside a significant decline in net income reported in the half-year report.
What could improve?
1&1 expects around 800 million euros in earnings from operations for 2026, before interest costs, taxes, and the annual accounting depreciation of assets are deducted, and plans to spend 500 to 550 million euros on network expansion. If its own mobile and fiber-optic network lowers the cost of using other networks and its customer business stabilizes, earnings could rise; both are uncertain.
How is the stock price assessed?
This assessment refers to the analysis and its quoted price shown here. It is not a live quote or a personal recommendation to buy.
At 24 euros per share, there is no evidence that the price is low: The half-year report showed net income falling from 74.6 to 30.5 million euros compared with the prior year, while the comparison figures for increased earnings before depreciation are based on an adjusted group baseline. Together with the planned high spending on network expansion, this calls for caution, but without a reliable valuation it does not allow a clear judgment about the price.
What is the main risk?
1&1 reported lower recurring revenue from mobile and internet services in the first half of 2026, as well as 140,000 fewer contracts. The company attributes the decline in contracts to a deliberate change in its pricing plans; if this leads to more customers leaving in the future, revenue could fall further.
What is the overall assessment?
Comparable earnings before interest, taxes, depreciation, and amortization rose in the first half of 2026 from 364.2 to 382.7 million euros, compared with the comparable prior-year period. That is an increase, but not the whole picture: The half-year report also showed net income falling from 74.6 to 30.5 million euros and earnings before taxes declining from 107.2 to 44.0 million euros.
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