09.11.2017 - 18:00 Uhr

freenet AG showing much improved corporate results and higher goal for DVB-T2 customers

  • EBITDA, at 110.1 million euros, 1.9 percent higher than in the previous quarter; does not include the EBITDA contribution coming from the equity interest in Sunrise in the amount of 103.6 million euros 
  • Corporate result jumps by approximately 170 percent to 157.1 million euros; without the share of the equity interest in Sunrise the corporate result would have been 58.7 million euros 
  • Free cash flow increases by 16.0 million euros to 87.3 million euros 
  • With the  current 875,000 paying freenet TV customers the goal for the whole year of 2017 is increased by 150,000 to approximately 950,000
  • The cooperation agreement with Media-Saturn Deutschland GmbH was extended early until September 2022

The freenet AG announced today the results for the third quarter 2017 in a quarterly communication and confirmed the outlook for the fiscal years 2017 and 2018.

After a positive first half of 2017, the corporate group experienced a further increase of the important ratios in the third quarter of 2017 compared with the same period last year. Corporate sales increased by 1.5 percent to 880.1 million euros in the third quarter of 2017 over the same period last year. The increase in sales was due among other things to the larger customer ownership of 9.60 million customers in the core mobile communications business and to increased digital lifestyle sales.

The corporate group EBITDA rose by 80.9 percent to 213.7 million euros (previous year: 118.2 million euros) in the third quarter of 2017 over the same period last year. The mobile communications segment contributed 205.5 million euros to this increase, including special effects from the equity interest in the Sunrise AG in the amount of 103.6 million, and the TV and media segmented contributed 10.7 million euros.

The corporate result also showed a positive development, rising by 171.0 percent to 157.1 million euros in the reporting quarter compared to the same period last year. The free cash flow1 also rose by a significant 16.0 million euros to 87.3 million euros.

In the core business mobile communications the increased number of valuable customers with binding two-year contracts confirms again the continuous growth in customer ownership, which has been a steady feature for the last five years.

We are pleased to say that the important ratios in the TV and media segment also grew in the third quarter of 2017. The latest freenet TV customer numbers as of September 30, 2017 confirm the growing demand in the market since the launch of the product in the first quarter of 2017. At the end of the third quarter of 2017 we already had exceeded the goal for the entire fiscal year 2017 with about 875,000 paying freenet TV customers. The goal for the end of the year 2017 was revised accordingly to approximately 950,000 freenet TV customers. Beside the product freenet TV, the IPTV product also reported a growing number of participants. Since the launch at the end of September 2016 waipu.tv registered approximately 340,000 users as of September 30, 2017. The number of households that have decided in favor of one of the payment packages rose to approximately 70,000 in the third quarter of 2017.

With two important events after the cutoff date of September 30, 2017 the freenet AG has strengthened its position further. For example, on October 16, 2017 the wholly-owned subsidiary mobilcom-debitel GmbH extended the existing cooperation agreement with the Media-Saturn Deutschland GmbH early by an additional five years. Besides, in mid-October of 2017 the freenet AG replaced the bridge financing that had existed since March 2016 by a syndicated five-year bank loan at a nominal volume of 710.0 million euros which will mature in October 2022. This gives the company long-term financing security.

Additional key numbers can be found in the quarterly communication under www.freenet-group.de/investor/publications.

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

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