freenet (FNTN) Q4 2024 earnings summary

Executive summary

• Achieved record year in 2024 with EBITDA per FTE at €196,000, free cash flow per shop day at €961,500, and strong growth in Mobile Communications and IPTV, including the highest postpaid net adds since 2018 and nearly 600,000 waipu.tv net adds.

• Subscriber base surpassed 10 million (+6.9% year-over-year), with revenues up 4% and free cash flow up 5.7% to €292 million.

• EBITDA and free cash flow reached record levels, supporting a record dividend proposal of €1.97 per share, including a €0.12 one-off from IP address sales.

• Strategic initiatives included new long-term MNO contracts, expanded tariff portfolios, and enhanced brand positioning through marketing and sports sponsorships.

• Marketing campaigns and brand repositioning drove increased brand recognition and customer preference.

Financial highlights

• Revenue increased by 3.9% year-over-year to €2.48 billion, driven by waipu.tv growth and stable mobile service revenues.

• EBITDA reached €521.5 million, including a special effect from IP address sales; adjusted EBITDA was €503.1 million.

• Free cash flow totaled €292.3 million, exceeding guidance.

• Dividend proposal of €1.97 per share (80% payout ratio), with €0.12 attributable to IP address sales.

• CapEx was low at €38 million, expected to rise in 2025.

Outlook and guidance

• 2025 guidance: moderate revenue growth, EBITDA of €520–540 million (excluding €14 million from additional IP sale), and free cash flow of €300–320 million (including IP sales).

• Dividend payout to remain at 80% of free cash flow, including IP address proceeds.

• Segment guidance: mobile adjusted EBITDA €420–440 million, TV/media EBITDA €115–135 million, with continued postpaid and waipu.tv subscriber growth.

• 2028 ambition aims for EBITDA ≥ €600 million, with growth driven by TV and mobile segments.