Freenet Ag · XETR:FNTN
Freenet — Q2 2024 Earnings Presentation
20 slides from Freenet's earnings presentation, Aug 8, 2024
Slide 1: freenet AG | Q2/H1 2024 Analyst and Investor Conference Call
freenet AG | Q2/H1 2024 Analyst and Investor Conference Call Christoph Vilanek, CEO Ingo Arnold, CFO 08.08.2024
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements which involve risks and uncertainties. The actual performance, results and timing of the business of freenet AG could differ materially from the expectations regarding performance, results and timing expressed in this presentation. The
Slide 3: Business update
Business update Christoph Vilanek CEO 3
Slide 4: Main achievements up to now in 2024
Main achievements up to now in 2024 Long-term agreements concluded with all three Q2 / H1 network operators (DT, VOD, TEFD) Expansion of 5G mobile tariff portfolio prepared and launched in Q3 2024 +330k IPTV net adds - on the road to 2m customers by year-end Gravis business closed at the end
Slide 5: Mobile: Moderate growth with upside
Mobile: Moderate growth with upside Mobile subscribers +0.01 Mobile subs grew with stable ARPU in m (end of period) (+0.1%) Subscriber and ARPU development 7.49 7.51 7.54 7.56 7.57 H1 24 mobile subscriber growth +26k 0.13 0.13 0.12 0.12 0.12 FY 24 target of ~100k mobile net adds remains Select
Slide 6: Mobile: New agreements expand scope of sales
Mobile: New agreements expand scope of sales MNO relationships secured long-term New tariffs launched and more to come… Launch of Happy SIM New freenet discount brand launched 5G discount tariffs based on Blau portfolio (TEFD) Starting from EUR 4.99 (5GB) up to EUR 9.99 (25 GB) More white la
Slide 7: TV: Significant IPTV growth continued
TV: Significant IPTV growth continued TV subscribers +0.17 waipu.tv with another record quarter in m (end of period) (+8.3%) waipu.tv 191k net adds in Q2 24 2.24 2.07 330k net adds in H1 24 1.95 2m waipu.tv subscribers within reach for YE 24 1.80 1.85 100% service level maintained even at pe
Slide 8: TV: Marketing invest with high impact
TV: Marketing invest with high impact Marketing measures convert into …………………… ... graspable output Brand recognition Converting into high net ATL Media with Dieter Bohlen (indexed to Sep 22) adds numbers TV commercials (linear TV) in % (end of period) in k TV sponsoring (e.g., Sports) H2e: On
Slide 9: Financial update
Financial update Ingo Arnold CFO 9
Slide 10: Group: EBITDA on track – gross profit promising
Group: EBITDA on track – gross profit promising Revenues Gross Profit EBITDA in EURm in EURm in EURm +3.3% +5.4% -1.2% 1,159.7 1,197.9 445.9 470.0 255.2 252.2 +3.4% +6.7% -0.4% 585.4 605.3 224.6 239.6 127.5 127.1 Q2 23 Q2 24 H1 23 H1 24 Q2 23 Q2 24 H1 23 H1 24 Q2 23 Q2 24 H1 23 H1 24 Satisfying re
Slide 11: Mobile: EBITDA exhibits a healthy growth
Mobile: EBITDA exhibits a healthy growth Revenues Gross Profit EBITDA in EURm in EURm in EURm +0.8% +2.7% +1.8% 994.6 1,002.1 330.7 339.5 205.7 209.4 +0.9% 153.7 150.1 +3.7% +4.8% 500.9 505.6 165.9 172.0 102.2 107.2 76.5 78.3 840.9 852.0 424.4 427.4 Q2 23 Q2 24 H1 23 H1 24 Q2 23 Q2 24 H1 23 H1 24 Q2
Slide 12: Mobile: ARPU stable, DLS revenues up 3.6% yoy
Mobile: ARPU stable, DLS revenues up 3.6% yoy Postpaid ARPU Mobile Subs DLS Revenues in EUR in m in EURm -0.5% -0.1% +1.0% +0.3% +3.6% 18.0 17.9 17.8 17.8 7.57 7.57 84.2 87.2 7.49 7.54 0.12 +1.4% 0.13 0.12 0.12 42.1 42.7 7.44 7.42 7.44 7.36 Q2 23 Q2 24 H1 23 H1 24 Q2 23 Q2 24 Q4 23 Q2 24 Q2 23 Q2 24
Slide 13: TV/Media: Strong revenue growth driven by IPTV
TV/Media: Strong revenue growth driven by IPTV Revenues Gross Profit EBITDA in EURm in EURm in EURm +15.9% +11.3% -10.8% +16.2% 192.3 +14.2% 119.4 59.2 165.9 107.3 52.8 -16.4% 98.9 62.5 30.4 85.1 54.7 25.4 Q2 23 Q2 24 H1 23 H1 24 Q2 23 Q2 24 H1 23 H1 24 Q2 23 Q2 24 H1 23 H1 24 Subscriptions grew b
Slide 14: Free cash flow in line with expectations
Free cash flow in line with expectations EBITDA-to-FCF bridge: Cash conversion remains >50% in EURm -27.7 -15.2 CNWC largely stable -19.1 0.1 Higher taxes due to the absence of some 252.2 -30.0 -9.2 one-off refunds received in H1 23 CapEx (net) remain below expectations 151.2 due to lower inve
Slide 15: 2024 Guidance confirmed
2024 Guidance confirmed Financial KPIs* 2023 2024 in EURm Actuals Guidance Revenue 2,383.0 stable EBITDA 500.9 495 - 515 Free cash flow 276.6 260 - 280 Non-financial KPIs in k (end of period) moderate Postpaid customers (w/o app-based tariffs) 7,418.3 growth significant waipu.tv subscribers 1,369.3
Slide 16: Q & A
Q & A 16
Slide 17: Further questions?
Further questions? Contact Upcoming events Investor Relations & ESG Reporting 21.08.2024 Hamburg (GER) Montega HIT +49 (0)40 513 06 778 ir@freenet.ag 03.09.2024 Frankfurt a. M. (GER) Commerzbank/ Oddo Corporate Conference 05.09.2024 London (UK) dbAccess European TMT Conference IR website 17.09.2024
Slide 18: Appendix
Appendix B/S KPIs as of 30 Jun 2024 Detailed 2024 Guidance EBITDA-to-FCF bridge
Slide 19: Financial structure as of Jun 2024
Financial structure as of 30 Jun 2024 Debt maturity structure Debt composition B/S KPIs in EURm (gross excl. accrued interest) 192.0 Cash Equity ratio 95.6 41.8 % 148.0 110.0 37% 88.5 23.5 75.0 452.5 Leverage Leverage (Bank) 63% 44.0 65.0 25.0 1.3 0.8 12.0 35.0 2024 2025 2026 2027 2028 Fixed Variabl
Slide 20: Detailed 2024 Guidance EBITDA-to-FCF bridge
Detailed 2024 Guidance EBITDA-to-FCF bridge (published 28 February 2024) EBITDA-to-FCF conversion > 50% in EURm -40 -40 Mid-point guidance: >50% EBITDA-to-FCF -65 conversion - 515 -70 -20 447.3 260 - 280 260 - 280 495 EBITDA CNWC Taxes CapEx (net) Lease payments Interest FCF payments freenet AG | Q2