Increased costs for the development of its own mobile network reduced 1&1's profits last year.

The operating result fell by 5.7 percent to 653.8 million euros, the mobile communications subsidiary of United Internet announced on Thursday. However, sales increased by 3.4 percent to 4.10 billion euros, whereby the important service revenues only grew by a below-average 2.1 percent. Last year, 1&1 gained 480,000 new customers after adding 350,000 customer contracts in 2022.

For 2024, the company forecast an increase in operating profit of ten percent and service revenues of around four percent. The investment volume is expected to increase by around 28% to around 380 million euros.

(Report by Hakan Ersen, edited by Ralf Banser. If you have any queries, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and the economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)