freenet confirms its 2026 guidance – robust customer and revenue growth, as well as strong cash conversion in the first half of 2026

• Revenues: +24.7% to EUR 1,512.9 million – growth driven in particular by the integration of mobilezone Germany
• Adj. EBITDA & adj. free cash flow: Adj. EBITDA at EUR 242.2 million (-5.9%) and adj. free cash flow at EUR 155.2 million (-4.2%); both key figures impacted by the previously announced commercial agreement with a mobile network operator
• Mobile communications: +63k postpaid customers to 8.304 million, plus an additional +360k postpaid contracts in reselling; adj. EBITDA at EUR 186.2 million (-11.6%), significantly impacted by a negative effect on EBITDA arising from a commercial agreement with a mobile network operator
• IPTV: +77k waipu.tv subscribers to 1.832 million; an increase of 36.5% in adj. EBITDA to EUR 18.5 million underlines scalability
• Outlook: Guidance for the 2026 financial year and financial targets for 2028 confirmed

Büdelsdorf, 12 August 2026 – freenet AG [ISIN DE000A0Z2ZZ5] today published its financial results for the first half of 2026 after the close of trading (Xetra).

The first half of 2026 was characterised by further growth in customer numbers and revenues, a previously announced negative impact on adj. EBITDA in the mobile communications business, and a continued positive trend in the IPTV business. Overall, business performance was in line with the expectations of the Executive Board and confirms both the guidance for the 2026 financial year and the 2028 financial ambition.

The customer base of postpaid customers and IPTV customers rose to a total of 10.136 million at the end of the first half of 2026 (+1.4% compared with the end of 2025) as a result of robust sales performance. Group revenue rose to EUR 1,512.9 million (+24.7%). The main driver behind this was the integration of mobilezone Germany, acquired at the end of 2025. Adj. EBITDA amounted to EUR 242.2 million (-5.9%) and adj. free cash flow to EUR 155.2 million (-4.2%). Both key figures were impacted by the commercial agreement with a mobile network operator, as previously announced. This effect is fully factored into the 2026 guidance and the 2028 financial ambition and does not alter the long-term profitability of the underlying mobile communications business.

With a cash conversion rate of over 60%, freenet’s business model remains highly cash-generating and confirms the company’s strong ability to pay dividends. Against this backdrop, a minimum dividend of EUR 2 per share has been guaranteed to shareholders for the financial years 2026, 2027 and 2028.

Mobile communications: expected negative impact on adj. EBITDA alongside continued robust customer growth

At the end of the first half of 2026, freenet served a total of 8.304 million postpaid customers, thereby increasing its customer base by 63 thousand compared with the end of 2025. In addition, 360 thousand postpaid contracts were concluded through reselling during the reporting period.

Demand for freenet’s mobile communications services remained stable. At the same time, the mobile market continues to be influenced by a challenging competitive environment and a lower price level compared with the prior year. Against this backdrop, freenet consistently pursued its ‘Value over Volume’ strategy, prioritising profitable and long-term customer relationships over pure customer growth. A key element of this is the positioning of the freenet brand as a premium mobile brand in the higher-value tariff segment, with a view to further enhancing the earnings quality of customer relationships.

Adj. EBITDA in the mobile communications segment stood at EUR 186.2 million, down 11.6% on the prior year’s figure. In the first half of 2026, the negative impact on EBITDA from the existing commercial agreement with a mobile network operator amounted to around EUR 22 million. For the 2026 financial year, the Executive Board expects a negative impact of around EUR 50 million. This effect is fully factored into the 2026 guidance and does not alter the long-term profitability of the underlying mobile communications business. The 2028 financial ambition is based on the conservative assumption that the additional cost burden arising from the existing commercial agreement with the mobile network operator will continue until 2028. freenet is addressing this impact through operational and strategic actions and is in ongoing dialogue with the mobile network operator concerned regarding the further development of the commercial framework, with the target of reducing the negative impact.

IPTV: waipu.tv increases adj. EBITDA by around 40% on the back of a growing customer base and stable costs

The IPTV business continued its profitable growth trajectory in the first half of 2026. waipu.tv gained a net total of 77 thousand subscribers, increasing its customer base to 1.832 million subscribers.

The increasing scale of the business model was once again reflected in the performance of adj. EBITDA, which rose by 36.5% to EUR 18.5 million compared to the prior-year period. Material drivers of this development were rising revenues from the subscription and targeted advertising businesses, combined with a stable cost base.

Adj. EBITDA was affected by a non-period-specific charge of approximately EUR -1.4 million arising from the retrospective adjustment of an inventory valuation issue. The underlying issue relates economically to the prior year and is not connected to the operational development of the reporting period. Nevertheless, the segment significantly increased its contribution to adj. EBITDA, underpinning its central role as a driver of growth and value within the 2028 financial ambition.

Outlook: Executive Board confirms 2026 guidance and 2028 financial ambition

Based on business performance in the first half of the year, the Executive Board confirms the guidance for the 2026 financial year. The Executive Board expects the Group to achieve adj. EBITDA of between EUR 500 and 530 million and adj. free cash flow of between EUR 270 and 300 million.

At the same time, freenet is on track to achieve its 2028 financial ambition. This envisages an adj. EBITDA of at least EUR 620 million and an adj. free cash flow of at least EUR 340 million. Material levers remain the further scaling of the IPTV business, the consistent development of mobile communications sales and existing customer management, and the increasing use of AI across the internal value chain.

Against the backdrop of consistently high cash conversion, freenet intends to pay a minimum dividend of EUR 2 per share for the financial years 2026, 2027 and 2028. If 80% of the respective adj. free cash flow results in a higher amount, this higher amount is to be distributed.

Conference Call

The conference call on the results for the first half of 2026 will take place on Thursday, 13 August 2026, at 10:00 am (CEST). Participation is possible via webcast (listen-only mode). A recording will be made available afterwards.

Selected financial indicators at Group and segment level for the reporting period

KPI   Unit    H1 2026   H1 2025   Absolute
change   Relative
change Revenues   €m 1,512.9 1,213.1 299.9 24.7% o/w Segment Mobile   €m 1,307.1 1,008.8 298.3 29.6% o/w service revenues (postpaid)   €m 822.0 815.5 6.4 0.8% o/w Segment IPTV   €m 107.1 104.0 3.1 3.0% o/w Segment Other/Holding   €m 122.6 122.5 0.1 0.1% Adj. EBITDA   €m 242.2 257.4 -15.3 -5.9% o/w Segment Mobile¹   €m 186.2 210.6 -24.4 -11.6% o/w Segment IPTV   €m 18.5 13.6 4.9 36.5% o/w Segment Other/Holding   €m 37.4 33.2 4.2 12.6% Adj. free cash flow   €m 155.2 162.0 -6.8 -4.2% Cash conversion   % 64.1 62.9 1.2 pp 1.8%

¹  Note on adjusted EBITDA for the Mobile Communications segment: adj. EBITDA for the Mobile Communications segment was materially impacted in the first half of 2026 by a negative effect on EBITDA arising from an existing commercial agreement with a mobile network operator. This negative impact amounted to around EUR 22 million in the first half of 2026. For the 2026 financial year, the Executive Board expects a negative impact of around EUR 50 million. This impact is fully factored into the 2026 guidance and does not affect the long-term profitability of the underlying mobile communications business.

Selected customer metrics at Group and segment level as of the reporting date

KPI   Unit 30.06.2026 31.12.2025 Absolute
change    Relative
change Customer base   m 10.136 9.996 0.140 1.4% Postpaid customers   m               8.304               8.241              0.063 0.8% waipu.tv subscribers   m             1.832              1.755              0.077 4.4%

 

Selected operational key figures for the Mobile Communications segment during the reporting period

KPI   Unit H1 2026   H1 2025   Absolute
change   Relative
change Postpaid contracts (reselling)   k               360  n.a.  n.a.  n.a. Postpaid ARPU   € 16.6 17.5 -0.9 -5.3%

 

Definition of selected key figures

Key figure	Definition
Adj. EBITDA	Adjusted EBITDA: Earnings before the financial result, tax and depreciation, adjusted for positive and negative special items in accordance with the corporate management logic defined by freenet. A key operational performance indicator used to measure the Group’s profitability.
Adj. free cash flow	Adjusted free cash flow: Free cash flow adjusted for non-recurring special items affecting liquidity. The Group’s key liquidity-based performance indicator. It reflects the financial strength available for dividend payments, debt repayment and other corporate purposes. Free cash flow is derived from cash flow from operating activities, taking into account (net) capital expenditure and lease repayments.
Cash conversion	Ratio of adj. free cash flow to adj. EBITDA.
Customer base	The total number of postpaid customers and waipu.tv subscribers reported as at the reference date.
n.a.	Not available: No comparable figure was published for this key figure in the prior-year period; therefore, no absolute or relative change is reported.
Postpaid ARPU	ARPU: Average revenue per user is the average monthly revenue (before VAT) per postpaid customer.
Postpaid customers	The number of mobile customers with fixed-term or postpaid contracts as at the relevant reference date.
Postpaid contracts (reselling)	Postpaid contracts concluded in the reselling business during the reporting period. This figure is not included in the reported postpaid customer base.
Service revenues        (postpaid)	Revenues from postpaid mobile communications services, excluding hardware sales.
waipu.tv subscribers	Number of waipu.tv subscribers as at the reference date.

 

Please note that there may be arithmetical rounding differences in the subtotals and final totals due to the number format, as the figures have been rounded to one decimal place. Furthermore, when converting units of measurement (e.g. thousands to millions), the result may be 0.0 or -0.0 for reported items.

 

Further documents relating to the publication

fn.de/downloadsir

 

Contact

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Phone: +49 (0)40/513 06 778   

Email: ir@freenet.ag    

 

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