FREENET (=) : 1Q26 Conf. Call Feedback

Research evidence excerpt

FREENET (=) : 1Q26 Conf. Call Feedback

EQUITIES

TELECOM OPERATORS

FREENET NEUTRALPRICE* EUR25.2  TARGET PRICE EUR26 (UPSIDE 3%)

FLASH NOTE

1Q26 Conf. Call Feedback

15 MAY 2026 Securities Research Report Production time: 11:06* (London time)

Research Analyst & Publishing Entities

Joshua Mills, CFA BNP Paribas London Branch (+44) 203 430 8670 Joshua.Mills@uk.bnpparibas.com

What happened?

Freenet’s 1Q26 conf. call concluded a few moments ago, with shares now +1.63% (as of time of writing), in line with

our expectation. See below our 3x key takeaways:

1. Price environment

Following the price competition that began in 2024, management noted that the German mobile market is now moving

from a “volume first” to a “value first” approach, which it sees as a positive development. Deutsche Telekom, Vodafone,

and Telefónica (especially its Blau sub-brand) have already raised their tariffs, and Freenet increased theirs in the start

of 2026, increasing its front book prices by roughly 1-2 %. Management was happy about the +29k postpaid subscribers

in the quarter, largely driven by its own sales channels. To reinforce the trend, Freenet relaunched the Freenet domain

and launched four TV spots designed to lift its unaided brand awareness, which is still only around 10% (far below the

40%+ of its main rivals). Management sounded confident that performance-based marketing would generate more high-

quality website traffic and improve conversion rates, as it sees a “big opportunity to increase brand awareness” over

the next quarters. On the technology side, Freenet has introduced Smart Pricing 2.0, an AI powered engine that

analyses the behaviour of its +8million customers to recommend the optimal offer for each individual in real time. By