Freenet (AO) | Hold | Q1 review: in line first quarter

Research evidence excerpt

Freenet (AO) | Hold | Q1 review: in line first quarter

News comment

Release date: 15 May 2026

Florian Treisch

Equity Research Analyst

Hold +49 697 569 6132Freenet ftreisch@keplercheuvreux.com

Germany | Telecom services Beta Profile: MCap: EUR2.9bn

Target Price: EUR28.50 Bloomberg: FNTN GR Reuters: FNTGn.DE

Current Price: EUR25.18 Free float 95%

Up/downside: 13.2% Avg. daily volume (EURm) 33.6

YTD abs performance -14.2% Market data: 14 May 2026

52-week high/low (EUR) 35.32/25.18

Q1 review: in line first quarter

Key points:

Q1 results were broadly in line with expectations (slight beat on EBITDA adj.), with financials being clearly impacted by the first-

time consolidation of mobilezone and a new segment reporting.

The FY-26 guidance was reiterated, as expected, indicating limited changes to EBITDA adj. expectations, in our view. On a small

positive, the management highlighted "constructive progress in MNO contract re-negotiations", indicating frequent discussions

with TefD's management.

We continue to like Freenet’s business model, which offers predictable, capex-light growth and good FCF visibility and yield,

though we believe that today’s news flow offers limited upside to expectations, explaining our Hold rating. From our point of

view, Freenet is focusing on the right priorities, which should help to improve growth dynamics later in the year.

Q1 review: Mobile Communications delivers on expectations - IPTV with good margin - consolidation impact

Mobile Communications: Q1 segment revenues were slightly ahead of consensus (c.1% beat), reflecting slightly higher postpaid

service revenues, but more importantly, higher non-service revenues, which are significantly impacted by the first-time

consolidation of mobilezone.