freenet delivers strong customer growth and high adj. free cash flow in the first nine months – 2026 guidance confirmed

Freenet delivers strong customer growth and high adj. free cash flow in the first nine months – 2026 guidance confirmed

• Revenues rise to EUR 2,289.6 million (+25.2%) – driven by the integration of mobilezone Germany
• Adj. free cash flow rises to EUR 233.3 million (+2.7%), underlining the business model’s strong cash conversion
• Mobile Communications: postpaid customer base rises by +104 thousand to 8.345 million; an additional 544 thousand postpaid contracts in reselling; adj. EBITDA at EUR 286.3 million (-10.6%), impacted by the previously disclosed negative effect arising from the current commercial agreement with Telefónica Deutschland
• IPTV: waipu.tv subscription customer base rises by +116 thousand to 1.871 million; adj. EBITDA rises significantly by 20.3% to EUR 29.5 million
• Telefónica Deutschland and Freenet lay the foundation for another ten years of partnership
• Outlook: guidance for the 2026 financial year confirmed

Büdelsdorf, 11 November 2026 – Freenet AG [ISIN DE000A0Z2ZZ5] today published its financial results for the nine-month period of the 2026 financial year after the close of regular trading (Xetra).

The first nine months of 2026 were characterised by strong sales performance in the core businesses of Mobile Communications and IPTV, significant revenue growth following the integration of mobilezone Germany, and a consistently high cash conversion rate. Overall, business performance was in line with the Executive Board’s expectations and confirms the guidance for the 2026 financial year.

The customer base rose to a Total Fina Elf of 10.216 million postpaid and IPTV customers at the end of the first nine months of 2026 (+2.2% compared to the end of 2025). Consolidated revenue increased to EUR 2,289.6 million (+25.2%). The material driver of revenue growth was the integration of mobilezone Germany, which was acquired at the end of 2025. Adj. EBITDA amounted to EUR 372.5 million (-5.7%), primarily due to the previously announced impact on adj. EBITDA arising from a commercial agreement with a single mobile network operator.

The trend in adj. free cash flow benefited from the business model’s high cash conversion rate (around 63%) and rose by 2.7% to EUR 233.3 million, despite the lower adj. EBITDA. This strong cash flow forms the basis for an attractive return to shareholders. For the financial years 2026 to 2028, Freenet guarantees a minimum dividend of EUR 2.00 per share. If 80% of the respective adj. free cash flow results in a higher amount, this higher amount is to be distributed.

Mobile Communications: strong sales performance in a challenging market environment

At the end of the third quarter of 2026, Freenet served a Total Fina Elf of 8.345 million postpaid customers, thereby increasing its customer base by 104 thousand compared to the end of 2025. In addition, 544 thousand postpaid contracts were sold through the reselling business in the first nine months of this year.

This development underlines the competitiveness of Freenet ’s mobile services and the reach of its sales platform. The ‘value over volume’ approach is being consistently pursued, with a focus on building long-term, profitable and valuable customer relationships. Service revenues (postpaid) rose by 0.9% to EUR 1,239.9 million as a result of sustained customer growth. At EUR 16.6, postpaid ARPU remained below the previous year’s level (-5.1%), but stabilised at the level seen in previous quarters. Overall, revenues in the mobile communications business rose by 31.9% to EUR 1,980.3 million. The main driver was significantly higher revenues resulting from the integration of mobilezone at the beginning of the year.

Adj. EBITDA in the Mobile Communications segment stood at EUR 286.3 million, 10.6% below the previous year’s figure. The main reason for this was the previously announced negative impact of around EUR 32 million arising from a commercial agreement with a single mobile network operator. The potential full-year impact (EUR -50 million) is fully factored into the 2026 guidance. The constructive discussions with Telefónica, which have been ongoing since the beginning of the year, have now resulted in an agreement on key commercial terms for the long-term continuation of the partnership. A detailed term sheet was signed by both parties on 10 November.

IPTV: waipu.tv is growing profitably and increasing its contribution to earnings

The IPTV segment (waipu.tv) continued its profitable growth trajectory in the first nine months of 2026. waipu.tv recorded 116 thousand subscriber net adds, bringing its customer base to 1.871 million subscribers. The company thus remains the clear number two behind MagentaTV in the structurally growing market for internet-based linear television (IPTV). Against this backdrop, in mid-October 2026, Freenet acquired the remaining around 25% of the shares in waipu.tv on the basis of a very attractive valuation at an initial purchase price of around EUR 76 million. The transaction is in line with the existing capital allocation strategy and has no impact on the 2026 guidance or the communicated dividend policy. The initial purchase price will be funded from available liquidity, including proceeds from the sale of the remaining shares in Ceconomy AG in November of this year.

Adj. EBITDA for the IPTV segment rose significantly by 20.3% compared with the prior-year period to EUR 29.5 million. At EUR 161.1 million, the segment’s revenues remained at the level of the prior year due to the absence this year of EBITDA-neutral media barter transactions. On a like-for-like basis, IPTV revenues grew by 8.5% to EUR 156.3 million. This development underscores the increasing scale of the business model and the growing importance of waipu.tv to the Group’s adj. EBITDA performance.

Outlook: Executive Board confirms 2026 guidance

Based on business performance in the first nine months, the Executive Board confirms its guidance for the 2026 financial year. Adj. EBITDA for the Group is still expected to be between EUR 500 and 530 million, with adj. free cash flow between EUR 270 and 300 million.

For the Mobile Communications segment, the Executive Board continues to expect adj. EBITDA of between EUR 390 and 420 million; for the IPTV segment, between EUR 45 and 55 million; and for the Other/Holding segment, between EUR 65 and 75 million. The postpaid customer base is expected to grow moderately, whilst the number of waipu.tv subscribers is expected to increase significantly.

Conference Call

The conference call on the results for the first nine months of 2026 will take place on Thursday, 12 November 2026, at 11.00 am (CET). The conference call can be followed via webcast in listen-only mode. A recording will be made available afterwards.

Selected financial indicators at Group and segment level for the reporting period

KPI	Unit	9M 2026	9M 2025	Absolute Change	Relative Change
Revenues	€m	2,289.6	1,828.1	461.6	25.2%
o/w Segment Mobile	€m	1,980.3	1,501.6	478.7	31.9%
o/w Service revenues (postpaid)	€m	1,239.9	1,229.0	10.9	0.9%
o/w Segment IPTV	€m	161.1	160.4	0.7	0.4%
o/w Segment Other/Holding	€m	182.7	197.5	-14.8	-7.5%
Adj. EBITDA	€m	372.5	395.1	-22.7	-5.7%
o/w Segment Mobile1	€m	286.3	320.1	-33.8	-10.6%
o/w Segment IPTV	€m	29.5	24.5	5.0	20.3%
o/w Segment Other/Holding	€m	56.7	50.5	6.2	12.2%
Adj. free cash flow	€m	233.3	227.2	6.1	2.7%
Cash conversion	%	62.7	57.5	5.1 pp	8.9%

¹ Note on adj. EBITDA for the Mobile Communications segment: Adj. EBITDA for the Mobile Communications segment was materially impacted in the nine-month period of 2026 by a negative effect on adj. EBITDA arising from additional expenses related to an existing commercial agreement with a mobile network operator. The additional expense amounted to approximately EUR 32 million. For the 2026 financial year, the Executive Board expects a negative impact of around EUR 50 million. This impact is fully reflected in the 2026 guidance and does not alter the long-term profitability of the underlying mobile communications business.

Selected customer metrics at Group and segment level as of the reporting date

Key figure	Unit	30.09.2026	31.12.2025	Absolute     Change	Relative Change
Customer base	m	10.216	9.996	0.220	2.2%
Postpaid customers	m	8.345	8.241	0.104	1.3%
waipu.tv subscribers	m	1.871	1.755 2	0.116	6.6%

² Excluding O₂TV subscription customers from the former sales partnership with Telefónica Deutschland

Selected operational key figures for the Mobile Communications segment during the reporting period

Key figure	Unit	9M 2026	9M 2025	Absolute    Change	Relative Change
Postpaid contracts (reselling)	k	544	n.a.	n.a.	n.a.
Postpaid ARPU	€	16.6	17.5	-0.9	-5.1%

Definition of selected key figures

Key figure	Definition
Adj. EBITDA	Adjusted EBITDA: Earnings before the financial result, tax and depreciation, adjusted for positive and negative special items in accordance with the corporate management logic defined by Freenet . A key operational performance indicator used to measure the Group’s profitability.
Adj. free cash flow	Adjusted free cash flow: Free cash flow adjusted for non-recurring special items affecting liquidity. The Group’s key liquidity-based performance indicator. It reflects the financial strength available for dividend payments, debt repayment and other corporate purposes. Free cash flow is derived from cash flow from operating activities, taking into account (net) capital expenditure and lease repayments.
Cash conversion	Ratio of adj. free cash flow to adj. EBITDA.
Customer base	The Total Fina Elf number of postpaid customers and waipu.tv subscribers reported as at the reference date.
n.a.	Not available: No comparable figure was published for this key figure in the prior-year period; therefore, no absolute or relative change is reported.
Postpaid ARPU	ARPU: Average revenue per user is the average monthly revenue (before VAT) per postpaid customer.
Postpaid customers	The number of mobile customers with fixed-term or postpaid contracts as at the relevant reference date.
Postpaid contracts     (reselling)	Postpaid contracts concluded in the reselling business during the reporting period. This figure is not included in the reported postpaid customer base.
Service revenues (postpaid)	Revenues from postpaid mobile communications services, excluding hardware sales.
waipu.tv subscribers	Number of waipu.tv subscribers as at the reference date.

Please note that there may be arithmetical rounding differences in the subtotals and final totals due to the number format, as the figures have been rounded to one decimal place. Furthermore, when converting units of measurement (e.g. thousands to millions), the result may be 0.0 or -0.0 for reported items.

Further documents relating to the publication

Contact

Investor Relations

Phone: +49 (0)40/513 06 778

Email: ir@freenet.ag

 

Public Relations

Phone: +49 (0)40/513 06 777

Email: pr@freenet.ag