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1&1:Quarterly Results/2024 Q1: Difference between revisions
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* '''If they don't get the low-band frequency, they will use the national roaming to ensure good indoor coverage, hence they will experience lower traffic which will impact the financial performance.''' | * '''If they don't get the low-band frequency, they will use the national roaming to ensure good indoor coverage, hence they will experience lower traffic which will impact the financial performance.''' | ||
* They believe there will be a way that will enable them to have access to the low-band spectrum. | * They believe there will be a way that will enable them to have access to the low-band spectrum. | ||
* They said spectrum leasing could be an option but no discussion with any operator regarding it at the moment. | |||
* Without the low-band spectrum, they still expect 50% coverage (40-50%, but they are more on the upper side). | |||
* With the low-band spectrum, they expect 60% coverage. | |||
* The worst case scenario is an extension without obligation for other operators to provide access to them. | |||
* '''They acknowledged the leaked BnetzA internal letter and said it mirrors their worst case scenario.''' | |||
=== Migration === | === Migration === | ||
* They started with a significant number at the end of March. | |||
* '''1&1 said they are now close to optimum migration which is 50,000 migrations per day.''' | |||
* Their current migration rate is between 20,000 to 40,000 per day. | |||
* They migrate customers on 4 days per week. | |||
* '''At the end of April, they had around more than 1 million customers in the network.''' | |||
* 6-8 million migration is realistic scenario in 2024. | |||
* Own network will lead to better offers and pricing. | |||
* They haven't received any complaints on the migration. | |||
=== Outlook === | |||
* '''They are guiding for 80-100k net customer additions in Q2 2024 aided by some things they changed in their offers.''' | |||
* 1&1 view the 160 million EBITDA impact by startup costs in 2024 as reasonable (they don't expect it to be higher). | |||
* They said EBITDA impact in Q2 will be high but they expect savings in the 2nd half due to migration of costumers to own network. | |||
* EBITDA in Q2 will be close to that of Q1 but will improve in the 2nd half. | |||
* The biggest part of capex will be finishing the two core data centres (expected to be completed in two months). | |||
* They are comfortable with the 4% service revenue growth in 2024 aided by stable broadband contracts and monthly plan received this year. | |||
=== Antenna sites === | === Antenna sites === | ||
* They still target 3,000 sites at the end of 2024. | * They still target 3,000 sites at the end of 2024. | ||
* They had 530 base stations at the end of Q1. | * The breakdown of antenna sites is currently 80% collogation and 20% PTS but in future PTS will be higher. | ||
* '''They had 530 base stations at the end of Q1'''. | |||
* '''227 antenna sites are already connected with fibers.''' | |||
=== Core business === | === Core business === | ||
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* They have seen aggressive offers but no reduction in pricing by competitors eg Deutsche Telecom and FreeNet. | * They have seen aggressive offers but no reduction in pricing by competitors eg Deutsche Telecom and FreeNet. | ||
* 1&1 said | * 1&1 said they don't see any opportunities for price increase at the moment. | ||
* ARPU in the broadband segment was higher in Q1 2024 compared to the same period last year due to migration to tariffs with higher bandwidths. | |||
* | |||
=== Vodafone agreement === | === Vodafone agreement === | ||