02.03.2017 - 18:10 Uhr

freenet AG exceeds targets for fiscal year 2016

  • Group revenue grow by 7.8 percent to 3.362 billion euros
  • Corporate EBITDA (1) increases by 18.5 percent to 438.8 million euros
  • Free cash flow (2) rises by 20.0 percent to 341.5 million euros
  • Customer Ownership growing by approx. 232,000 to 9.53 million with stable ARPU
  • Proposed dividend of 1.60 euros for fiscal year 2016

Based on the preliminary figures, freenet AG reached respectively exceeded all targets indicated for fiscal year 2016.

According to the preliminary results, in 2016 the company chalked up Group revenue of 3.362 billion euros, an increase of 7.8 percent over the previous year (previous year: 3.118 billion euros). The increase is essentially the result of the contribution made to sales during the past fiscal year in the newly created TV and Media segment in the amount of 218.9 million euros. Besides, rising sales of hardware and high-value digital lifestyle products made a positive contribution to the growth in total sales. The core business mobile communications contributed a total of 3.126 billion euros to corporate revenues, an increase of 2.1 percent over the previous year (3.061 billion euros).

The Group EBITDA rose a significant 18.5 percent to total of 438.8 million euros (previous year: 370.2 million euros) and the free cash flow was 341.5 million euros (previous year: 284.5 million euros).

The Customer Ownership (the number of contract and no-frills customers) grew in the course of the year by approx. 232,000 to 9.53 million participants (previous year: 9.30 million customers). With a stable average sale of 21.40 euros (previous year: 21.40 euros) per contract customer (postpaid ARPU), the strategically important postpaid customer base in particular rose by approx. 203,000 participants to currently 6.51 million (previous year: 6.31 million customers). In the no-frills business area the number of participants increased by approx. 29,000 to 3.02 million in comparison with the previous year (previous year: 2.99 million customers).

Joachim Preisig, Chief Financial Officer of freenet AG, is very pleased with the past fiscal year: "We reached or even exceeded all the targets that we set ourselves at the beginning of the year for our key figures."

As already announced in March 2016, the Management will suggest to the Supervisory Board a dividend in the amount of 1.60 euros per dividend-bearing no par-value share for fiscal year 2016. This corresponds to a pay-out ratio of approximately 60 percent of the free cash flow generated in fiscal year 2016.

The final numbers and the business report 2016 will be published on 23 March 2017.

1) Corporate results before interest, income taxes, write-offs and depreciations, including the portion of the results of the enterprises included under the equity method, excluding write-offs and deferred taxes from the follow-up valuation concerning the shadow purchase price allocation (component of the result of the enterprises included under the equity method).

2) Free cash-flow is defined as the cash-flow from ongoing business activities less investments in tangible and intangible assets, plus the proceeds received from the disposal of tangible and intangible assets.

This report contains future-oriented information which is based on current assumptions and projections made by the Management of freenet. Known and unknown risks, uncertainties and other factors may mean that the actual development, in particular the results, the financial situation and the business transacted by our company differ from these future-oriented statements made in this report. The company does not assume any obligation to implement these future-oriented statements or to adjust them to future events or developments. All information is based on preliminary calculations before the final consolidation and conclusion of the audit. Deviations from the final business numbers to be presented on 23 March 2017 might therefore occur.

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