2024-03-21 16:52:10 ET
United Internet AG (UDIRF)
Q4 2023 Earnings Conference Call
March 21, 2024, 08:00 AM ET
Company Participants
Ralph Dommermuth - CEO
Markus Huhn - CFO
Conference Call Participants
Titus Krahn - Bank of America
Polo Tang - UBS Investment Research
Ben Rickett - New Street Research
Adam Fox-Rumley - HSBC
Usman Ghazi - Berenberg Bank
Presentation
Unidentified Company Representative
Good morning, ladies and gentlemen, good afternoon. I would like to give you a warm welcome on behalf of 1&1, our CEO, Mr. Dommermuth; and our CFO, Mr. Huhn. The Board will continue to present the company development of 2023 to you within the scope of this investors' conference. They will tell you a bit more about the forecast for 2024 and some updates on the network expansion. Afterwards, as always, the Board is available to answer your questions. Thank you.
And now I'd like to hand over to Mr. Dommermuth.
Ralph Dommermuth
Thank you, Mr. Keil. Hello, ladies and gentlemen. Welcome to today's conference.
I'll begin with the company development and then I'd go into a little more details on our biggest and most important investment into the 1&1 network. Mr. Huhn will then follow with the financial key figures.
You know our company we are dealing with broadband connections and with mobile Internet connections. We currently have 4.01 million broadband connections based on VDSL and FTTH. We produce it mostly with our sister company, 1&1 Versatel, using City Carriers or the Deutsche Telekom for the connection.
Besides that, we have 12.25 million mobile contracts, so customers. We have launched the first Open RAN in Europe, which is fully virtualized. We have a broad market coverage with a number of different brands. We have our primary brand, 1&1, and then of course our co-brands, GMX and WEB.DE with the co-brands, and then discount brands that we've taken over through acquisitions.
Last year, customer contracts have increased by 3% to 16.26 million. This was mostly driven by the mobile Internet growth with 570,000 new contracts. For broadband lines, we've had decreases in our customer base in the first three quarters of 2023. It has stabilized in the last quarter of 2023. We have now 4.01 broadband lines, which is 90,000 less than in the previous year. Why has it stabilized? We have made progress in our migration from ADSL to VDSL contracts. ADSL is the old technology, has a higher termination pressure than VDSL and glass fiber connections, we have made good progress on this last year.
The fourth quarter with 150,000 mobile contracts and the stable broadband ownership was a good finish to the year. The revenue has increased by 3.4% last year. Service revenue increased by 2.1% to €3.243 billion....
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United Internet AG (UDIRF) Q4 2023 Earnings Call Transcript