Freenet Ag · XETR:FNTN
Freenet — Q1 2025 Earnings Presentation
21 slides from Freenet's earnings presentation, May 2025
Slide 1: freenet AG | 2025 Q1 Analyst and Investor Presentation
freenet AG | 2025 Q1 Analyst and Investor Presentation Quarterly results Christoph Vilanek, CEO Ingo Arnold, CFO
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: Sound start into the 2025 year
Business Update I Financial Update I Appendix Group Sound start into the 2025 year Q1 Solid key financials • Group revenues grow as expected • Adj. EBITDA Mobile Communications is stable, TV/Media growing noticeably • FCF development trends along the guidance Customer growth in both segments 25 • Po
Slide 5: Strong and valuable postpaid growth in Q1
Business Update I Financial Update I Appendix Mobile Communications Strong and valuable postpaid growth in Q1 Mobile subscribers • Postpaid growth of +53k stronger in m (end of period) +0.05 (+0.7%) than Q1 24 (+19k) 7.764 • Market characterized by tariff 7.712 changes, mainly for high-ARPU 7.617 se
Slide 6: Successful marketing campaigns
Business Update I Financial Update I Appendix Mobile Communications Successful marketing campaigns Sport sponsorship uplifts visibility and popularity Brand familiarity increases … +73% Non-audience Audience ... as well as potential buying decision +44% Non-audience Audience Analyst and Investor Pre
Slide 7: waipu.tv wins two millionth customer
Business Update I Financial Update I Appendix TV and Media waipu.tv wins two millionth customer TV subscribers • waipu.tv net adds impacted by churn in m (end of period) +0.04 (+1.6%) from O2 TV base 2.477 • Net growth +60k in line within internal 2.437 2.344 planning and fitting full-year guidance
Slide 8: waipu.tv launched next generation dongle
Business Update I Financial Update I Appendix TV and Media waipu.tv launched next generation dongle waipu.tv 3rd gen. dongle feature set • Better wifi connectivity based on form factor • LED signalling standby and active mode • Faster zapping experience better haptic experience • Remote control illu
Slide 9: Media Broadcast leveraging core competence
Business Update I Financial Update I Appendix TV and Media Media Broadcast leveraging core competence Field service unit is currently only …entering electric charging infrastructure servicing DAB+ and DVB-T… • Comprehensive service with maximum New customers availability • 70 locations • >250 servic
Slide 10: Financial Update
Financial Update Ingo Arnold CFO Remark regarding Gravis: Gravis Computervertriebsgesellschaft mbH, Berlin (hereinafter referred to as “Gravis”) discontinued its business operations as of 30 June 2024. In accordance with the IFRS 5 accounting standard, the activities of Gravis and certain business t
Slide 11: EBITDA on track to meet 2025 guidance
Group EBITDA on track to meet 2025 guidance Revenues Gross Profit Adj. EBITDA in EURm in EURm in EURm +1.7% +2.8% -0.8% 594.5 604.4 229.9 236.4 127.1 126.1 Q1 24 Q1 25 Q1 24 Q1 25 Q1 24 Q1 25 • Moderate revenues growth with • Gross margin remains stable at • Q1 25 EBITDA on prior year’s level both p
Slide 12: Stable EBITDA despite higher marketing spend
Mobile Communications Stable EBITDA despite higher marketing spend Revenues Gross Profit Adj. EBITDA in EURm in EURm in EURm +1.3% +2.0% -0.7% 498.5 505.1 169.5 173.0 104.1 103.4 73.9 82.3 424.6 422.9 Q1 24 Q1 25 Q1 24 Q1 25 Q1 24 Q1 25 SR Hardware/ Other • Service revenues stable at -0.4% • Gross p
Slide 13: Customer growth offsets slight ARPU decline
Mobile Communications Customer growth offsets slight ARPU decline ARPU Mobile subscribers DLS revenues in EUR in m (end of period) in EURm -1.8% +0.7% -6.1% 17.7 7.76 44.5 17.4 41.8 7.71 7.60 7.65 0.11 0.11 Q1 24 Q1 25 Q4 24 Q1 25 Q1 24 Q1 25 Postpaid App based • Moderate ARPU decline of EUR 0.3 • M
Slide 14: waipu.tv expands EBITDA contribution
TV and Media waipu.tv expands EBITDA contribution Revenues Gross Profit Adj. EBITDA in EURm in EURm in EURm +6.7% +9.0% +8.4% 99.7 59.2 29.7 93.4 54.3 27.4 Q1 24 Q1 25 Q1 24 Q1 25 Q1 24 Q1 25 • Revenues reflect significantly higher • Gross profit increases in line with • EBITDA up noticeably by 8.4%
Slide 15: High FCF conversion remains unchanged
Business Update I Financial Update I Appendix Group High FCF conversion remains unchanged EBITDA-to-FCF bridge • CNWC improved, but negative in EURm b/c typical deferred payments based on year end inventory -16.1 build-up -8.2 • Taxes and CapEx (net) show -8.6 0.0 expected phasing, with catch- 126.1
Slide 16: Q&A, Contact and Upcoming events
Q&A Contact Upcoming events Investor Relations & ESG Reporting 04.06.2025 Zurich (CH) Citi Virtual Roadshow +49 (0)40 513 06 778 10.06.2025 London (UK) BofA C-Suite TMT Conference ir@freenet.ag 11.06.2025 Hamburg (GER) Warburg Highlights 2025 IR website 07.08.2025 Hamburg (GER) Conference Call - Fin
Slide 17: Appendix
Appendix • Financial structure as of 31 Mar 25 • Guidance 2025 • 2025 Adj. EBITDA-to-FCF bridge (expected) • freenet 2028 financial ambition
Slide 18: Financial structure as of 31 March 25
Business Update I Financial Update I Appendix Group Financial structure as of 31 March 25 Debt maturity Gross debt B/S KPIs in EURm (excl. accrued interest) in EURm 250.0 Cash Equity ratio in EURm 192.0 175.0 254.7 46.7 % 75.0 35% 148.0 415.5 Leverage Leverage (w/o leases) 65% 100.0 44.0 23.5 25.0 0
Slide 19: 2025 Guidance
Business Update I Financial Update I Appendix Group 2025 Guidance Group Unit 2024 Actuals 2025 Guidance Revenues EURm 2,477.7 Moderate growth Adj. EBITDA EURm 503.1 520 - 540 Free cash flow EURm 292.3 300 - 320 Segment Mobile Unit 2024 Actuals 2025 Guidance Revenues EURm 2,057.2 Moderate growth Adj.
Slide 20: 2025 Adj. EBITDA-to-FCF bridge (expected)
Business Update I Financial Update I Appendix Group 2025 Adj. EBITDA-to-FCF bridge (expected) Adj. EBITDA-to-FCF in EURm 14 -45 -50 -55 -60 - 540 -23 447.3 260 - 280 300 - 320 520 Adj. EBITDA One-off IP-sale CNWC Taxes CapEx (net) Lease payments Interest FCF (EBITDA) payments Analyst and Investor Pr
Slide 21: freenet 2028 financial ambition
Business Update I Financial Update I Appendix Group freenet 2028 financial ambition EBITDA-to-EBITDA bridge General remarks on 2028 ambition in EURm • Based on freenet's business performance up to CAGR: ~4% September 2024 • No M&A or inorganic growth assumed -20 ≥ 600 • No product portfolio extensio