freenet AG

Latest Results (19.05.2026):

freenet AG — Q1 2026: The company reported a strong top-line quarter with consolidated revenues of EUR 761.9m (Q1/2025: EUR 604.3m, +26.1%), driven largely by the consolidation of mobilezone Germany and organic customer growth. Adjusted EBITDA was EUR 122.0m (‑3.6% y/y) and consolidated profit from continuing operations was EUR 49.4m (‑16.5% y/y). Adjusted free cash flow improved to EUR 85.7m (+10.4%). Management confirmed 2026 guidance while flagging an expected ongoing negative earnings effect from an agreement with a mobile network operator (renegotiations ongoing) and emphasised IPTV strength and AI-driven sales initiatives.

Top-line

Revenues: EUR 761.9m in Q1/2026 (+26.1% y/y). The increase was almost entirely due to the integration of mobilezone Germany plus organic growth in postpaid customers and waipu.tv subscribers.

Profitability

Adjusted EBITDA: EUR 122.0m (Q1/2025 restated: EUR 126.6m; ‑3.6%). EBITDA: EUR 120.1m (‑5.2%). Consolidated profit from continuing operations: EUR 49.4m (Q1/2025: EUR 59.2m; ‑16.5%). Gross profit rose to EUR 242.0m but gross margin fell to 31.8% (prior-year 39.2%) reflecting lower‑margin hardware from mobilezone and the anticipated network‑operator agreement impact.

Segments — Mobile Communications & IPTV

Mobile Communications revenues: EUR 658.8m (‑ driven by mobilezone integration); Mobile Communications adjusted EBITDA: EUR 93.7m (‑9.8% y/y). IPTV revenues: EUR 52.8m (+7.7% y/y) and adjusted EBITDA: EUR 9.0m (+49% y/y), with waipu.tv adding 42.1k subscribers to 1,797.2k.

Customers & ARPU

Postpaid customers: 8,269.7k (up 28.5k vs 31.12.2025). waipu.tv subscribers: 1,797.2k (up 42.1k). Postpaid ARPU declined to EUR 16.6 (from EUR 17.5) reflecting market conditions and pricing mix.

Cash flow & free cash flow

Cash flow from operating activities: EUR 85.8m (‑16.9% y/y). Free cash flow: EUR 54.0m. Adjusted free cash flow: EUR 85.7m (+10.4% y/y) after atypical adjustments (notably a EUR 26.0m repayment to a mobilezone business partner and other items).

Balance sheet & leverage

Total assets: EUR 3,520.9m. Equity: EUR 1,583.3m; equity ratio increased to 45.0% (from 41.7%). Net financial liabilities: EUR 567.7m and leverage ~1.1x adjusted EBITDA (below the company limit), with cash on hand EUR 98.1m (down vs year‑end 2025).

Capital structure & financing

Financial liabilities fell to EUR 454.2m (repayments including a EUR 23.5m promissory note tranche). Interest expense rose (interest and similar expenses ~EUR 8.1m) related to financing mobilezone acquisition.

Guidance & management commentary

Management confirmed 2026 guidance (Group adjusted EBITDA target 500–530 EURm; adjusted free cash flow 270–300 EURm). They highlighted ongoing efforts to mitigate the network‑operator agreement impact, AI-driven sales measures, a national TV campaign and digital relaunch to strengthen mobile sales.

Market reaction

Share price (Xetra close): EUR 26.42 as of 31.03.2026 (‑10.0% vs 31.12.2025); market cap ~EUR 3.1bn.