freenet exceeds expectations for free cash flow – customer base and service revenues continue to grow, guidance for adjusted EBITDA and free cash flow confirmed

freenet exceeds expectations for free cash flow – customer base and service revenues continue to grow, guidance for adjusted EBITDA and free cash flow confirmed

• Revenues increased by 0.9%, postpaid service revenues by 0.6%
• Subscribers rose by 161 thousand to 10.311 million (year-end 2024: 10.149 million)
• Adjusted EBITDA at EUR 257.4 million – slightly above prior-year level (EUR 256.1 million)
• Adjusted EBITDA in the TV business grew significantly (+13.8% vs. prior year)
• Free cash flow increased by 5.2% to EUR 159.0 million (prior year: EUR 151.2 million)
• Guidance for adjusted EBITDA and free cash flow for the full year confirmed
• Reduction of the Executive Board to two members and early contract extension for CFO Ingo Arnold until the end of 2029

Büdelsdorf, 6 August 2025 – freenet AG [ISIN DE000A0Z2ZZ5] today published its results for the first half of the 2025 financial year after the close of trading (Xetra). All key figures relate exclusively to continuing operations.

freenet increased both adjusted EBITDA and free cash flow in the first half of 2025, despite a challenging market environment

freenet AG reports a successful first half of 2025 and confirms the guidance for adjusted EBITDA and free cash flow for the current financial year. freenet increased adjusted EBITDA and free cash flow despite a challenging market environment. The company recorded customer growth in both its mobile communications and TV businesses, with 161 thousand subscribers added in the first six months. This means that 10.311 million subscribers used the services of freenet in the first half of 2025, spread across the mobile communications, waipu.tv and freenet TV segments.

Total adjusted EBITDA amounted to EUR 257.4 million in the first half of 2025 (prior year: EUR 256.1 million), with a stable adjusted EBITDA margin of 21.2% (prior year: 21.3%). The Mobile Communications segment continued to make a stable contribution, while adjusted EBITDA in the TV and Media segment grew significantly by 13.8%.

The cash conversion remained high at over 60% of EBITDA, resulting in a 5.2% increase in free cash flow to EUR 159.0 million (prior year: EUR 151.2 million).

freenet continues to gain customers and increased service revenues in the TV and mobile communications business

In the Mobile Communications segment, net adds to postpaid contracts totalled 130.4 thousand, around five times as many as in the prior-year period (25.3 thousand). freenet thus posted strong growth figures despite a challenging market environment characterised by intensified competition. In response to these market conditions, freenet is continuously adapting its tariff portfolio to remain competitive.

In the TV and Media segment, waipu.tv recorded comparatively low growth of 61.2 thousand subscribers in the first half of 2025, following a record year in 2024 (prior-year period: 329.6 thousand). The decline compared with the prior-year period is attributable to the end of Telefónica's marketing of waipu.tv at the end of the third quarter of 2024, which resulted in noticeable portfolio effects. These effects will also have an impact in the second half of 2025. Irrespective of this effect, customer growth continued at a high level. Accordingly, growth figures for the second half of 2025 are expected to recover or increase compared with the first half of 2025. Overall, the development continues to confirm the long-term market dynamics assumed, which are characterised by a shift away from traditional transmission channels such as cable TV towards Internet-based television such as waipu.tv. Accordingly, the freenet TV subscription customer base also declined by 22.9 thousand to 473.4 thousand (end of 2024: 496.3 thousand), although this figure halved compared with the prior-year period (-40.3 thousand) and the development in the second quarter points to stabilisation.

Revenues for the Group rose by 0.9% to EUR 1,213.1 million in the first half of the year (prior year: EUR 1,202.1 million), reflecting in particular the significant customer growth in the TV business over the last twelve months. Revenues in the Mobile Communications segment rose to EUR 1,008.8 million in the same period (prior year: EUR 1,006.4 million). Postpaid service revenues included in this figure increased by 0.6% to EUR 799.4 million (prior year: EUR 794.4 million). The decisive factor here was the net increase of 130.4 thousand in the postpaid customer base, which offset the higher-than-expected decline in postpaid ARPU. Postpaid ARPU declined moderately to EUR 17.4 compared with the prior-year period (EUR 17.8). The decline is mainly attributable to the significant customer growth in the discount business in the second half of 2024 and the current intensified competition in the German mobile communications market. This ARPU development is now assumed for the full year 2025, although postpaid service revenues are still expected to rise.

Revenues in the TV and Media segment grew significantly by 6.5% to EUR 204.8 million (prior-year period: EUR 192.3 million). The revenue development reflects the significantly higher average customer base at waipu.tv. The decline in revenue at Media Broadcast and, in particular, at freenet TV due to the ongoing decline in the customer base was more than offset by waipu.tv.

freenet increased adjusted EBITDA due to significantly growing IPTV business

In the first half of the year, freenet generated adjusted EBITDA of EUR 257.4 million, up 0.5% on the prior-year figure of EUR 256.1 million. EBITDA, which included special items of EUR -2.0 million, amounted to EUR 255.4 million (prior year: EUR 256.1 million). In the Mobile Communications segment, adjusted EBITDA reached EUR 210.6 million, remaining virtually unchanged from the prior year (EUR 213.2 million). This development reflects targeted actions to increase brand awareness, in particular through higher marketing expenses of around EUR 8 million for the freenet mobile brands. The result is in line with the segment guidance for the full year, which continues to point to a solid development at EUR 420 million to EUR 440 million (prior year: EUR 430.6 million).

The TV and Media segment recorded adjusted EBITDA of EUR 60.1 million, representing significant growth of 13.8% compared with the prior-year period (EUR 52.8 million). This was positively impacted by the significantly higher average customer base at waipu.tv, whose earnings contribution more than offset the expected decline in adjusted EBITDA at Media Broadcast by almost EUR 10 million in the first half of 2025. For the full year, the Executive Management continues to expect adjusted EBITDA of between EUR 115 million and EUR 135 million (prior year: EUR 102.9 million) for the TV and Media segment.

The successful business performance confirms the guidance for the Group to achieve adjusted EBITDA of EUR 520 million to EUR 540 million (prior year: EUR 506.5 million) and free cash flow of EUR 300 million to EUR 320 million (prior year: EUR 292.3 million) by the end of the year. The guidance for all other performance indicators also remains unchanged, with the exception of postpaid ARPU, which has been adjusted from stable performance to moderately decreasing.

Reduction of the Executive Board to two members

As a result of the review process initiated following the change of CEO regarding the composition of the Executive Board, the Supervisory Board of freenet AG decided on 5 August 2025 to reduce the Management Board to two members with effect from 1 September 2025. The strict division of responsibilities between CEO Robin Harries and CFO Ingo Arnold is intended to clearly assign responsibilities, strengthen cross-departmental cooperation and accelerate decision-making processes. Ingo Arnold's appointment as CFO has been extended ahead of schedule until the end of 2029.

Conference call

A conference call on the results for the first half of 2025 will take place on Thursday, 7 August 2025 at 10:00 a.m. (CEST). The conference call can be followed via webcast (listen-only mode). A recording will be made available afterwards.

Further documents

¹ Includes subscribers of freenet FUNK and freenet FLEX

² With regard to the restatements to the figures for the first half of 2024, we refer to the explanations in note 2 in the selected explanatory notes in accordance with IAS 34 in the 2025 half-year report

³ freenet AG's reporting and guidance focus on adjusted EBITDA in order to improve the comparability of operating performance between financial years when special items are taken into account. Free cash flow, which forms the basis for the dividend distribution, is not adjusted for special items in order to facilitate the calculation of the expected distribution potential.

Note

For the sake of clarity and transparency, alternative performance measures (APMs) are used in freenet AG's financial statements and in ad hoc announcements pursuant to Art. 17 MAR in addition to the disclosures required by International Financial Reporting Standards (IFRS). Information on the use, definition and calculation of APMs can be found in the 2024 Annual report.

Contact

freenet AG

Investor Relations & ESG Reporting

Tel.: +49 (0)40/ 513 06 778

Email: ir@freenet.ag

Website: fn.de/investors



Public Relations & Corporate Communications

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Email: pr@freenet.ag