Germany ⫶ Impacted by MDU transition, B2B phasing & PY price increases Germany 37% of Group service revenue 1 -1.5% Service revenue growth MDU TV transition • -1.2 percentage point impact from MDU transition (Q4: -0.9pp) • Q1 performance impacted by: - Business project phasing - starting to lap broadband price increases from last year • Mobile customer additions impacted by: - planned downsizing of low-margin reseller channels - 30k B2B net losses, due to some large contract tenders in the prior year • FY24 price increase still impacting broadband customer losses • Continue to expect c.50% retention of 8.5 million households by the end of the transition • Secured 2.6m household retentions so far • Next big ‘wave’ of tenants transitioning in Q2 FY25 • Incremental service revenue headwind of c. € 400 million in FY25 - mobile ARPU growth slowing with competition in low-end & prepaid
Service revenue growth (%)
Net additions (‘000) Gigabit broadband
MDU transition
Secured household retentions
Uncertain outcome
95 DSL
Mobile contract
Organic
Organic excl. MDU transition impact
2
8.5m households Households not
1.5%
69
1.1%
51
24
0.3%
using service Households using service
(1.5%) (0.3%)
Around 50% households
(17) (45)
(23) (32) Q1 FY25
0.6%
(28) (48) Q3 FY24
(46) (87) Q2 FY24
(51) (70) Q1 FY24
2.6m households
(1.3%)
(39)
1.9m households
3
Q1 FY24
Q2 FY24
Q3 FY24
Q4 FY24
Q1 FY25
Q4 FY24
Pre-transition
Mar'24
Jun'24
Pos t-trans ition
Q1 FY25 Trading Update ⫶ July 2024
1. Based on Q1 FY25 service revenue contribution. 2. Fibre customer additions included in Gigabit broadband from Q1 FY25. 3. Based on TV Connect survey, May 2022.
4
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