EL7.AI
StocksMedium•12 November 2026•
3 min read

1&1 Posts €27.1 Million Pre-Tax Loss as Third-Quarter Revenue Grows 12.1%

Key Facts

1Third-quarter revenue was €1,132.1 million, up 12.1% from the same period.
2The company posted a third-quarter pre-tax loss of €27.1 million, compared with a profit of €51.9 million a year earlier.
3Service revenue was €907.3 million, up 8.9% year over year.
4The company expects non-recurring expenses of about €60.0 million for its 2026 transformation and restructuring program.
5The company expects annual growth of about €100 million in operating earnings before interest, taxes, depreciation and amortization in 2027 and 2028.

1&1 AG posted a pre-tax loss of €27.1 million in the third quarter of 2026, after recording a profit of €51.9 million in the same period last year. Revenue rose 12.1% to €1,132.1 million from €1,009.8 million a year earlier. Service revenue was €907.3 million, up 8.9% year over year. The results showed a divergence between revenue growth and a decline in accounting pre-tax profit. Reuters reported that the company's shares fell 1% after the results were announced on November 12, 2026.

Operating profit before interest and taxes fell to €8.0 million in the quarter from €57.3 million a year earlier, a decline of 86.0%. Comparable operating profit, however, was €68.0 million, compared with €57.3 million in the third quarter of 2025. Earnings before interest, taxes, depreciation and amortization rose to €150.6 million, up 19.6% from €125.9 million. Operating earnings before interest, taxes, depreciation and amortization were €210.6 million, up 67.3% year over year. These indicators show differing performance across operating and accounting measures during the quarter.

For the transformation and restructuring program at 1&1 Versatel, the company expects non-recurring expenses of about €60.0 million in fiscal 2026. The company said the spending is related in particular to employee-related measures and other project costs. The spending provides context for the results, but does not by itself determine how much it contributed to the pre-tax loss reported in the quarter. The expected program expenses remain separate from the profit indicators published for the period. The plan comes as some operating performance measures grew in the quarter.

Across the customer base in the first nine months of 2026, mobile internet contracts fell by 240,000 to 12.24 million contracts as of September 30. The company attributed the decline to adjustments to its discounted tariff package, halting the marketing of very low-priced options, and reducing data allowances in some plans. Broadband contracts, by contrast, increased by 20,000 connections to 3.86 million DSL or fiber-optic connections during the reporting period. The figures show two different trends in the customer base: a decline in mobile internet contracts and an increase in broadband connections. These movements provide commercial context for the growth in service revenue during the quarter, though the company did not specify in the reported data how much each trend contributed to that growth.

The cumulative period's performance thus differs from the third-quarter pre-tax loss. The comparison between the two operating measures depends on the company's definition of each, while the figures together show a widening gap between the comparable operating measure and the actual result for the nine months. The company reaffirmed its specific guidance for 2026 and expects annual growth of about €100 million in operating earnings before interest, taxes, depreciation and amortization in 2027 and 2028.