08.08.2019 - 20:00 Uhr

freenet Group reports stable overall performance in the first half of the year

  • Revenue up slightly to 1.389 billion euros
  • EBITDA higher than previous year at 215.5 million euros
  • Free cash flow of 126.7 million euros within the forecast range
  • Subscriber base grows to 8.224 million

The freenet Group today announced its results for the first half of 2019.

At 1,389.0 million euros, revenue in the first half of 2019 was slightly up on the prior-year period (H1/2018: 1,386.2 million euros). EBITDA increased by 10.5 million euros to 215.5 million euros compared to the first half of 2018. Taking into account regulatory effects ( e.g. IFRS 16),  EBITDA shows a stable performance comapared to 2018.

Free cash flow of 126.7 million euros was within the forecast range of 110.0 to 130.0 million euros for the first half of the year (H1/2018: 135.1 million euros).

In the first half of 2019, the mobile communications market continued to be shaped by influences such as saturation, EU price regulations and competition restrictions in the mobile hardware market. The freenet Group is actively tackling these challenges with various countermeasures aimed in particular at improving the quality of the customer base and ensuring the stability of key financial figures. While the Group once again reported a slight decline in the strategically important postpaid customer segment compared to the previous quarter (-27,500 customers), this trend is already weakening compared to the first quarter of 2019 (-34,200 customers) as a result of the measures taken. Overall, the postpaid customer base of 6.834 million customers is around 62,000 lower than at the start of the year but above the previous year’s figure (30 June 2018: 6.828 million customers).

In the TV and Media segment, continued growth in waipu.tv customers underlines the significant appeal of our IPTV product. As of 30 June 2019, the number of registered waipu.tv customers rose by 923,900 to around 1.748 million year-on-year (30 June 2018: 0.824 million registered customers). Of those registered customers, around 332,000 are paying customers using one of the subscription models. This equates to almost double the number reported in the previous year (30 June 2018: around 174,000 subscribers), meaning that the Group has already almost achieved its full-year target of 350,000 subscribers for 2019. The number of revenue-generating freenet TV users rose by 37,000 customers year-on-year to 1.037 million customers (30 June 2018: 1.000 million customers), slightly above the long-term target of over 1.001 million freenet TV subscribers (RGU).

„The results for the first half of 2019 meet our expectations. Therefore we hold onto our forecast for the current financial year,” states Christoph Vilanek, CEO freenet Group.

The half-yearly report for the period ended 30 June 2019 is available for download in the Investor Relations section at https://www.freenet-group.de/investor/publications/index.html.

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