Which are the premium brands and discount brands
1&1 AG has two brands, premium brands and discount brands. Premium brands are offered by 1&1 and they target high value clients. On the other hand, discound brands appeal to price-conscious customers. Discount brands are offered by its subsidiary, Drillisch Online Gmbh[1]. This subsidiary was formed in 2019 as Drillisch Telecom AG[2]. Drillisch Online Gmbh and Yourfone(premium brand and mobile phone seller) were Drillisch's core business before the merger. The former comprised of Smartmobile.de(premium brand), Maxxin, sim.de, winsin, deutschlandSim and Simply[3]. After the merger, no other subsidiary was added to Drillisch Online Gmbh[4]. Before the merger, Drillisch was considered a low-cost mobile phone operator as it appealed to customers on a tight budget while 1&1 was a premium brand[5]. During the merger, 3.4 million customers came from Drillisch (based on 2016 numbers) while 1&1 had 8.7 million customers[6]. Therefore, assuming all discount brands came from Drillisch, it means around 4.5 million customers(or less) of 1&1 AG (28% of 15.87 million in Q1 2023) belong to discount brands.
Growth rate of premium brands and discount brands
Before the merger, year-over-year revenue growth rates of Drillisch was highly volatile. However, between 2010 and 2014, revenue grew by -3.26% on average. United Internet did not provide revenue breakdown from various segments but it gave revenue from access segment. Access segment comprised brands such as 1&1, GMX, WEB.DE and 1&1 Versatel. 1&1 Versatel was consolidated by United Internet in Q4 2014. Excluding revenue from 1&1 Versatel, access segment revenue grew by 14.31% year-over-year on average between 2010 and 2014. 1&1 revenue probably accounted for the largest portion of that access segment revenue given that the proportion of its subscriber numbers between 2014 and 2016 was 96% on average[7].
Drillisch revenue
| Period
|
2016
|
2015
|
2014
|
2013
|
2012
|
2011
|
2010
|
2009
|
2008
|
2007
|
2006
|
Average growth rate from 2010 to 2014
|
| Revenue in € M
|
710.0
|
629.5
|
289.6
|
290.5
|
323.7
|
349.1
|
362.5
|
344.5
|
350.1
|
361.5
|
282.2
|
|
| Growth(%)
|
12.79%
|
117.37%
|
-0.31%
|
-10.26%
|
-7.28%
|
-3.70%
|
5.22%
|
-1.60%
|
-3.15%
|
28.10%
|
|
-3.26%
|
Access Segment revenue excluding Versetel
| Period
|
2015
|
2014
|
2013
|
2012
|
2011
|
2010
|
2009
|
Average growth rate from 2010 to 2014
|
| Access segment revenue excluding versetel
|
2,224.70
|
2,004.50
|
1,788.30
|
1,586.10
|
1,368
|
1,231.49
|
1,028.77
|
|
| Growth(%)
|
10.99%
|
12.09%
|
12.75%
|
15.94%
|
11.08%
|
19.71%
|
|
14.31%
|
1&1 Subscribers
| Period
|
2016
|
2015
|
2014
|
Average
|
| Total subcribers
|
8.7
|
7.5
|
6.4
|
|
| As a % of total United Internet Access segment Subscribers
|
99.77%
|
96.15%
|
94.26%
|
96.73%
|
References