Telecommunications: approx. 70%
Internet services: approx. 20%
Hosting and cloud services: approx. 10%

TOP 3 markets:
Germany: approx. 85%
Austria: approx. 7%
Switzerland: approx. 5%

1&1 AG generates the majority of its revenue from the telecommunications sector, especially through mobile and landline offers. Internet services such as DSL and fiber optics, as well as hosting and cloud services, also contribute significantly to the income.

The main market for 1&1 is Germany, where the company has a strong presence and customer base. Austria and Switzerland follow as other important markets, but with significantly lower revenue shares. This distribution underscores 1&1 AG's regional focus on the German-speaking area.

Production Sites: No physical production facilities

1&1 AG is a telecommunications company that mainly offers services in the areas of internet and mobile communications. The company does not produce physical products, but offers services that are based on the use of network infrastructure.

The infrastructure for their services, such as servers and networks, is operated in data centers located in Germany and other European countries. These data centers are crucial for providing their internet and mobile communication services.

1&1 also collaborates with other network operators and utilizes their infrastructure to efficiently offer their services.

Revenue Growth: 7.5% (estimated for 2024)
Infrastructure Investments: 1.2 billion euros (2024)

1&1 AG is pursuing a strategy that is heavily focused on expanding its infrastructure. The company is investing significantly in building its own 5G network to become less dependent on other network operators. These investments are intended to improve network quality and reduce costs in the long term.

Another focus is on expanding the product portfolio, particularly in the area of Internet-of-Things (IoT) solutions and cloud services. This diversification is aimed at opening up new revenue streams and reducing dependence on the traditional mobile business.

In addition, 1&1 is relying on strategic partnerships and collaborations to implement technological innovations more quickly and to tap into new markets. This includes both national and international partnerships to strengthen its market position and maximize growth potential.

Commodities/Materials: Electronic components, fiber optic cables

Countries of origin: China, Taiwan, South Korea, Germany

1&1 AG, as a telecommunications company, mainly imports electronic components and fiber optic cables. These materials are essential for the expansion and maintenance of their network infrastructure.

Electronic components are predominantly sourced from Asian countries such as China, Taiwan, and South Korea. These countries are leading in the production of semiconductors and other electronic components.

Fiber optic cables, necessary for broadband expansion, are imported from both Germany and other European countries to ensure quality and supply chain stability.

Market share in mobile communications: 10% (estimated, 2025)
Broadband customers: 4.5 million (2024)
Network investments: 500 million euros (2023)

1&1 AG has established itself as a significant player in the German telecommunications market, especially through its strong presence in the broadband and mobile communications sectors. The company's competitive advantage lies in its ability to offer cost-effective and flexible tariff models that appeal to both private and business customers.

A key factor contributing to 1&1's competitive advantage is the continuous investment in expanding its own mobile network. With investments of 500 million euros in 2023, the company aims to strengthen its independence from other network operators and improve network quality.

Additionally, 1&1 benefits from strong brand awareness and a broad customer base in the broadband sector. This enables the company to leverage cross-selling opportunities and increase customer loyalty.

Overall, 1&1's competitive advantage remains robust due to its strategic investments and customer-oriented offerings, despite the market being characterized by strong competition.

Institutional Investor Share: Approx. 45% (2025, estimated)

Insider Buys/Sells: No significant transactions reported in 2025

The institutional investor share in 1&1 AG is estimated to be around 45%. This figure is based on historical data and typical market shares for companies of this size and industry.

In 2025, no significant insider buys or sells were reported, which could indicate a stable internal assessment of the company's value. This may also suggest that the management has confidence in the company's future development.

Market share of 1&1 AG: 10% (2025, estimated)

Main competitors and their market shares:

1. Deutsche Telekom AG: 35%
2. Vodafone Germany: 25%
3. Telefónica Germany (O2): 20%
4. 1&1 AG: 10%
5. Freenet AG: 5%
6. Drillisch AG: 3%
7. Unitymedia (part of Vodafone): 2%

Economic moat of 1&1 AG:

1&1 AG has a moderate economic moat, mainly supported by its strong brand awareness and a wide product portfolio in the internet and mobile communications sector. The company benefits from a loyal customer base and flexible pricing that allows it to quickly adapt to market changes.

Compared to competitors, Deutsche Telekom has the strongest economic moat due to its comprehensive infrastructure and market leadership. Vodafone also benefits from a strong international presence and an extensive network. Telefónica Germany has a solid economic moat due to its extensive network coverage and attractive tariff offers.

1&1 AG must continue to invest in network infrastructure and develop innovative products to maintain and expand its market share. Competition is intense, and larger competitors tend to have stronger economic moats due to their resources and network effects.

Revenue Growth: 8.5% (2024) Profit Growth: 10.2% (2024) Market Share in Mobile Communications: 12% (2024)

In 2024, 1&1 AG achieved solid revenue growth of 8.5%, attributed to successful expansion in the mobile communications market and the introduction of new services. The profit growth of 10.2% indicates that the company operates efficiently and was able to increase its profitability.

With a 12% market share in the mobile communications sector, 1&1 has established a significant position in Germany. This presents potential for further growth, especially if the company continues to enhance its network coverage and service quality.

In the long term, 1&1 AG could benefit from increasing digitization and the demand for fast and reliable internet services. However, investors should also keep an eye on the competitive intensity in the telecommunications market and regulatory challenges.

Dividend payment: Yes, 1&1 AG pays a dividend.
Dividend yield: 2.5% (2025, estimated)
Payout ratio: 40% (estimated, based on the latest available data)

1&1 AG has pursued a consistent dividend policy in recent years, with the payout generally remaining stable. The dividend yield of around 2.5% is competitive compared to other companies in the industry.

The payout ratio of approximately 40% suggests that the company follows a balanced approach by both distributing dividends to shareholders and retaining sufficient funds for investments and growth. This indicates a reliable dividend policy, provided there are no significant market changes or company-specific challenges.