28.02.2019 - 15:00 Uhr

freenet AG meets all of its targets in financial year 2018 and once again plans to distribute attractive dividend

  • Revenue increases to 3.659 billion euros
  • EBITDA exclusive of Sunrise grows to 441.3 million euros due to one-time effects
  • Growth in all relevant customer groups
  • Proposed dividend for 2018: 1.65 euros per share

freenet AG today announced that based on its preliminary figures it has met all of the targets included in its guidance for financial year 2018. Revenue without IFRS 15 effects rose by 152 million euros to 3.659 billion euros during the year under review, driven by an increase in hardware revenue.

EBITDA exclusive of Sunrise grew by 8.1 per cent year-on-year to 441.3 million euros, thus exceeding the EBITDA forecast. This increase was primarily due to the positive one-off effect of 39.1 million euros connected with the sale of the Media Broadcast Group’s analogue radio infrastructure. Free cash flow exclusive of Sunrise amounted to 289.2 million euros.

In the saturated German mobile communications market, the freenet Group consolidated its positioning and succeeded in growing the strategically important postpaid customer group by 2.8 per cent to 6.9 million customers by the end of December 2018. In the TV and Media segment, waipu.tv passed the significant one million registered users mark in September 2018. At the end of the year, waipu.tv had as many as 1.264 million registered users including approximately 252,000 subscribers. freenet TV has also reported rising customer figures since launching its commercial offering in summer 2017 and had around 1.142 million freenet TV subscribers at the end of 2018. The freenet TV subscribers (RGU) key performance indicator, which reflects the number of actual active (revenue-generating) users as opposed to freenet TV subscribers, was introduced during the year. At 1.014 million customers, it increased by around 12 per cent year-on-year, thus coming in slightly above the subsequently announced RGU target of 1.0 million users.

Based on the results achieved, the Executive Board and Supervisory Board will propose a dividend of 1.65 euros per share for the 2018 financial year at the freenet Annual General Meeting on 16 May 2019.

It is the aim of the freenet AG to generate stable revenue in the 2019 financial year. EBITDA based on EBITDA exclusive of Sunrise and profits from the sale of analogue radio is expected to come in between 420 and 440 million euros. This figure includes effects from the application of IFRS 16 in the amount of 30 to 40 million euros. Taking the new definition into account, free cash flow is anticipated to be between 240 and 260 million euros. The number of postpaid customers is expected to increase moderately in 2019, while in the TV and Media segment, waipu.tv subscribers are assumed to grow to more than 350,000 and freenet TV customers (RGU) are expected to stabilise at more than 1.0 million customers.

The freenet Group expects to publish its final financial results for 2018 on 25 March 2019. The Annual Report for the year ended 31 December 2018 will then be available in the Investor Relations section at https://www.freenet-group.de/investor/publications/index.html.

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