Freenet (FNTGn.DE): Q2 focus to remain on Telefónica dispute and German competition

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Freenet (FNTGn.DE): Q2 focus to remain on Telefónica dispute and German competition

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23 Jun 2026 00:00:00 ET │ 13 pages

Freenet (FNTGn.DE)

Q2 focus to remain on Telefónica dispute and German competition

CITI'S TAKE

We update our Freenet model ahead the Q2 results on 12 August. Focus will

likely centre on whether there has been any progress relating to the ongoing

dispute with Telefónica that led to the disappointing full year results in Neutral

February, albeit given its materiality (c€50m pa), Freenet confirmed at Q1 Price (22 Jun 26 09:44) €24.84

that were there any constructive conclusion to talks, a market

announcement would be necessary. Elsewhere, we expect focus to centre Target price €26.00↓

on Freenet’s commentary about German mobile competition, where its from €29.00

commentary at Q1 was encouraging, albeit we would note that it reports Expected share price return 4.7%after all of the main German mobile network operators (MNOs), so read-

across to other stocks will be limited. We reiterate our Neutral rating and Expected dividend yield 8.1%

lower our price target to €26 (from €29). Expected total return 12.7%

Market Cap €2,953M

MNO headwinds cap mobile growth — Freenet surprised the market at Q4 2025

US$3,387Mwith the news of an MNO contractual dispute (later confirmed as being with

Telefónica), with lower postpaid volumes than contractually committed leading to

non-payment. The headwind caused a €13m EBITDAaL headwind on mobile

EBITDA in Q4, with the annualised EBITDAaL impact for 2026 being around €50m

in a worst-case scenario where no compromise is reached. As such, the company Price Performance

adjusted its 2026 guidance to reflect the headwinds with mobile EBITDAaL (RIC: FNTGn.DE, BB: FNTN GR)