Freenet AG: Q1/26 review - Sales rising significantly but profitability burdened

Research evidence excerpt

Freenet AG: Q1/26 review - Sales rising significantly but profitability burdened

Deutsche Bank

Research

Rating Company Date

Buy Freenet AG 15 May 2026

Europe Reuters Bloomberg Rating Buy

Germany FNTGn.DE FNTN GR Price target (EUR) 33.00 Price at 14 May 26 25.18

52-week range 36.12 – 25.18

Telecommunications

Wireless Services Valuation & Risks

Q1/26 review - Sales rising significantly but

profitability burdened LarsResearchVom-CleffAnalyst

+49-69-910-13526

EBITDA burdened by negative earnings impact of a MNO agreement

Benefitting from mobilezone Deutschland’s consolidation as well as the IPTV

division, group revenue was up 26% yoy. Mobile Communication sales rose 30%

Key changes

yoy and postpaid service revenues also increased slightly; however ARPU fell 5%

Price target (EUR) 33.6 33.0 -2%

yoy. IPTV’s sales rose 8% yoy. waipu.tv added 42k net new subscribers (+6% yoy

/ +2% qoq) to a total of 1.8m subscribers. Group adjusted EBITDA declined 4% Source: Deutsche Bank

yoy, with Mobile Communication (burdened by negative earnings impact of a

network operator agreement) being down 10% yoy. IPTV’s adjusted EBITDA rose

49% yoy. The Other/holding segment, which now incorporates the Media

Broadcast business, reported a slight sales decline of 0.5% yoy, while adjusted

EBITDA rose 16% yoy, primarily due to reduced personnel costs following the

previous year's Executive Board downsizing. FCF was up 10% yoy; benefitting

from an improved cash conversion and a higher MNO bonus payment

Ongoing contract discussions with “one MNO” continuously weighing on

profitability and investor sentiment

freenet continuously forecasts adjusted FY26 EBITDA of EUR 500-530m (flat yoy

@ midpoint / DBe EUR 512m) and FCF of EUR 270-300m (DBe EUR 183m). The