freenet (FNTN) Q3 2025 earnings summary

Executive summary

• Strong Q3 and nine-month performance with growth in postpaid and TV service revenues, and Adjusted EBITDA up 4% in Q3 and 1.6% for the first nine months year-over-year.

• Waipu.tv continues to drive customer and profitability growth, with its EBITDA and revenue share increasing.

• Strategic acquisition of MobileZone/mobilezone Deutschland for €230 million approved, expected to close in Q4 2025, strengthening sales power and market position.

• Exclusive distribution partnership with MediaMarktSaturn extended for five years, enhancing sales channels.

• Free cash flow increased 2.8% for the nine months, despite a one-off €20 million tax payment.

Financial highlights

• Group revenues for 9M 2025 reached €1,828.1 million, up 0.3% year-over-year; Q3 revenues were €615.0 million, down 0.8% due to The Cloud sale.

• Gross profit for 9M 2025 increased 4.3% to €741.2 million, with gross margin improving to 40.5%.

• Adjusted EBITDA for 9M 2025 was €395.1 million, up 1.6% year-over-year; Q3 adjusted EBITDA was €137.7 million, up 4.0%.

• Free cash flow for 9M 2025 was €226.1 million, impacted by a €20 million tax payment.

• Consolidated profit declined 12.8% to €207.6 million; EPS from continuing operations fell 14.8% to €1.72.

Outlook and guidance

• 2025 guidance confirmed: moderate growth in group revenues, adjusted EBITDA of €520–540 million, and free cash flow of €300–320 million.

• Mobile segment guidance: moderate growth in revenues and adjusted EBITDA of €420–440 million.

• TV/Media segment guidance: noticeable growth in waipu.tv subscribers and adjusted EBITDA of €115–135 million.

• 2028 ambition: EBITDA ≥ €600 million, FCF ≥ €330 million, driven by waipu.tv and postpaid growth.

• Postpaid ARPU guidance revised to a moderate decrease; postpaid customer base and waipu.tv subscribers expected to grow.