freenet (FNTN) Q2 2025 earnings summary

Executive summary

• CEO Robin Harries emphasizes agility, AI-driven transformation, and a strong market position in mobile and TV, supported by a robust sales infrastructure and high cash generation.

• Customer base grew by 161.4k to 10.31 million in H1 2025, driven by postpaid growth of 130.4k and waipu.tv reaching 2 million subscribers.

• Revenues increased 0.9% year-over-year to €1,213.1 million, with adjusted EBITDA up 0.5% to €257.4 million and free cash flow up 5.2% to €159.0 million.

• Dividend of €1.97 per share (up 11.3%) was paid, including a €0.12 one-time effect from IP address sales; a €100 million share buyback program was launched.

• CEO transition occurred in June 2025, with Robin Harries succeeding Christoph Vilanek.

Financial highlights

• Revenues: €1,213.1 million (+0.9% year-over-year); gross profit: €482.3 million (+3.0%).

• Adjusted EBITDA: €257.4 million (+0.5%); EBITDA: €255.4 million (-0.3%).

• Free cash flow: €159.0 million (+5.2%); cash flow from operating activities: €213.6 million (+2.8%).

• Consolidated profit from continuing operations declined 23.2% to €125.7 million, mainly due to higher income tax expenses and the absence of prior-year one-time tax effects.

• Equity ratio: 44.1% (down from 44.5% at year-end 2024); leverage: 1.1x EBITDA.

Outlook and guidance

• 2025 guidance confirmed: adjusted EBITDA €520–540 million, free cash flow €300–320 million.

• Mobile Communications segment: adjusted EBITDA expected at €420–440 million; TV and Media segment: €115–135 million.

• Moderate postpaid customer growth and noticeable waipu.tv subscriber growth expected; postpaid ARPU guidance revised to moderate decrease.

• 2028 ambition: EBITDA ≥ €600m, FCF ≥ €330m, ~4% CAGR assumed.

• waipu.tv net adds for 2025 now expected to be around 200,000, down from the previous 300,000 target.