03.05.2016 - 18:30 Uhr

freenet AG again increases all relevant indicators in the first quarter 2016, featuring a marked growth in customer ownership and strong postpaid ARPU

  • Group turnover increases to EUR 749.2 million
  • EBITDA reaches EUR 89.1 million
  • Marked rise of own customer base by 331K to 9.37 million
  • Positive development of average sale per customer to EUR 21.5 (previous year: EUR 21.1)
  • Free cash flow* is now EUR 64.9 million

freenet AG today published its interim report for Q1 2016; confirming the guidance for financial year 2016 and continues on its successful course.

In the first quarter 2016, a Group turnover of EUR 749.2 million (previous year: EUR 748.5 million) was generated. This includes the profits from the postpaid business as well as for the first time the sales contribution of the newly acquired Media Broadcast Group (18 March 2016 to 31 March 2016).

Compared to the previous year’s quarter, the company was able to increase the Group EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) by EUR 3.1 million to EUR 89.1 million (previous year: EUR 86.0 million).

Customer ownership - which consolidates particularly high-value contract customers as well as the discount segment (no frills) and which serves as an important control parameter - could be increased markedly by over three percent to 9.37 million customers in comparison with the previous year’s quarter (previous year: 9.04 million). The overproportional increase in postpaid customers by 260K or 4.3 percent to 6.36 million is particularly pleasing. All mobile communications contracts with a 24-month term sold by the Group are summarized in this customer group. One of the essential contributors to this success was the current sales campaign by mobilcom-debitel.

freenet AG achieved average monthly sales per contract customer (postpaid ARPU) of EUR 21.5 in the first quarter 2016. This includes an increase of EUR 0.4 in comparison to the previous year’s quarter (previous year: EUR 21.1). This is the result of freenet AG’s strategic focus on high-value customers both in new customer business as well as in the management of existing customers. “The once again positive development of the customer ownership numbers and in particular the postpaid business, confirms our strategy in the core business area mobile communications. At the same time, with the acquisition of EXARING AG and Media Broadcast Group we have created the foundations for further expansion in our digital lifestyle portfolio with TV products,” said Christoph Vilanek, CEO of freenet AG.

The free cash flow rose in the first quarter 2016 by EUR 2.6 million to EUR 64.9 million. “On the basis of a very strong business performance in the first quarter 2016, we confirm our guidance for the fiscal year 2016 which we increased at the beginning of March,” declared Joachim Preisig, CFO of freenet AG.

The complete interim report for the first quarter 2016 is available for download at www.freenet-group.de/investor-relations. The conference call will be broadcast at the same location via webcast on 4 May 2016 from 10 am MEST onwards.

* Free cash flow is defined as cash flow from ongoing business activity, minus investments in tangible fixed and immaterial assets, plus payments-in from disposals of immaterial and tangible fixed assets.

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