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freenet AG Interim / Quarterly Report 2024
164_10-q_2024-11-10_91e40e22-2908-4e8e-95d0-2e330700c3dc.pdf
Interim / Quarterly Report
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freenet
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9M / 2024
Nine-month statement
1 January – 30 September 2024
Mobile Communications. Internet. TV entertainment.
Key figures
Operational key figures¹
| In EUR million / as indicated | 9M/2024 | 9M/2023 (adjusted) | Change absolute | relative |
|---|---|---|---|---|
| Revenues | 1,816.4 | 1,765.2 | 51.2 | 2.9% |
| Gross profit | 713.2 | 670.0 | 43.2 | 6.4% |
| EBITDA | 380.0 | 376.8 | 3.1 | 0.8% |
| Adjusted consolidated net income² | 231.1 | 198.0 | 33.1 | 16.7% |
| Adjusted earnings per share (in EUR)³,⁵ | 1.96 | 1.65 | 0.30 | 18.5% |
Subscribers
| In '000s | 30.9.2024 | 31.12.2023 | Change absolute | relative |
|---|---|---|---|---|
| Postpaid customers | 7,497.6 | 7,418.3 | 79.3 | 1.1% |
| App-based tariffs⁴ | 119.2 | 121.3 | –2.1 | –1.8% |
| freenet TV subscribers (RGU) | 513.7 | 583.8 | –70.1 | –12.0% |
| waipu.tv subscribers | 1,830.5 | 1,369.3 | 461.2 | 33.7% |
| Number of subscribers (Total) | 9,961.0 | 9,492.7 | 468.3 | 4.9% |
Balance sheet
| As indicated | 30.9.2024 | 31.12.2023 | Change absolute | relative |
|---|---|---|---|---|
| Equity ratio | 43.7% | 42.1% | 1.6 PP | 3.9% |
| Leverage (x times EBITDA) | 1.1 | 1.2 | 0.0 | –2.5% |
Cash flow, investments and depreciation / amortisation¹
| In EUR million | 9M/2024 | 9M/2023 (adjusted) | Change absolute | relative |
|---|---|---|---|---|
| Free cash flow | 219.9 | 219.1 | 0.8 | 0.4% |
| Net investments (CapEx)³ | –28.4 | –33.8 | 5.3 | –15.8% |
| Depreciation, amortisation and impairment | –108.0 | –208.5 | 100.5 | –48.2% |
| Thereof amortisation of the mobilcom-debitel trademark | 0.0 | –98.5 | n/a | n/a |
Share
| As indicated⁴ | 30.9.2024 | 31.12.2023 | Change absolute | relative |
|---|---|---|---|---|
| Share price (in EUR) | 26.72 | 25.34 | 1.38 | 5.4% |
| Market capitalisation (in EUR million) | 3,177 | 3,013 | 164 | 5.4% |
Employees¹
| 30.9.2024 | 31.12.2023 | Change absolute | relative | |
|---|---|---|---|---|
| Headcount | 3,166 | 3,174 | –8 | –0.3% |
| FTE | 2,636 | 2,647 | –11.0 | –0.4% |
¹ Relates exclusively to continuing operations.
² Figure for the 2023 financial year adjusted for effects from the amortisation of the mobilcom-debitel trademark.
³ Basic and diluted
⁴ Includes subscribers of freenet FUNK and freenet FLEX
⁵ Net investments (CapEx) are investments in property, plant and equipment and intangible assets, less cash inflows from the disposal of property, plant and equipment and intangible assets.
⁶ Based on XETRA closing price
freenet AG
2024 nine-month statement
01
Contents
02 Letter to our shareholders
03 Business performance
08 Selected financial information
14 Further information
Please note that there may be arithmetical rounding differences in the subtotals and final totals due to the number format, as the figures have been rounded to one decimal place. Furthermore, when converting units of measurement (e.g. in '000s to millions), the result may be 0.0 or -0.0 for reported items.
freenet AG
2024 nine-month statement
Back to contents
01 Key figures
02 Letter to our shareholders
03 Business performance
08 Selected financial information
14 Further information
Letter to our shareholders
Dear Shareholders,
We can look back on a successful nine months of the current financial year. Our revenues increased by 2.9% to EUR 1.82 billion (prior year: EUR 1.77 billion). We originally assumed a stable performance. We now expect moderate revenue growth in the 2024 financial year, particularly in light of the strong customer growth and significant increase in revenue at waipu.tv.
"We are well on track to exceed our record result for the 2023 financial year in the current year."
After nine months of this year, we have recorded EBITDA of EUR 380.0 million (prior year: EUR 376.8 million) and free cash flow of EUR 219.9 million (prior year: EUR 219.1 million). Both figures are currently in line with our expectations. Based on the continued positive outlook for our business performance, we are narrowing our guidance for EBITDA for the full year to between EUR 500 million and EUR 515 million (priority: EUR 495 million to EUR 515 million). At the same time, we are narrowing our expectation for free cash flow and increasing it slightly to EUR 270 to 285 million (priority: EUR 260 to 280 million). We are therefore well on track to exceed our record result for the 2023 financial year this year!
In the middle of this year, we concluded new multi-year contracts with the network operators (Deutsche Telekom, Vodafone, Telefónica Deutschland). These give us long-term planning security in individual parameters and more flexibility in customer acquisition. Accordingly, we launched many new tariffs on the market in Q3 2024. We now offer 5G tariffs in all networks under our freenet brand and have also further expanded our offering for price-conscious customers.
"Very active product management in Q3 – new mobile tariffs, new brands, new customers!"
We have also recently become a high-profile sports sponsor, supporting Toni Kroos' Icon League and the European Handball Championship 2025 as an official partner. And this is bearing fruit. In Q3, we achieved more than twice as much customer growth (54 thousand) as in the first two quarters combined (25 thousand). We have now acquired 79 thousand net new subscribers in the postpaid business in 2024 and continue to expect this figure to rise to over 100 thousand by the end of the year.
We will welcome these new customers in our redesigned shops, among other things. Since August of this year, we have entered a new era of retail in a large number of freenet shops – Assisted Personalised Shopping (APS). This step seamlessly links freenet's online and offline worlds, ensuring a standardised offering across all of our own sales channels. The new shop concept offers customers in bricks-and-mortar retail a significantly expanded selection of demonstration devices and products in order to emphasise the demand-oriented consulting service even more. This allows customers to quickly and efficiently find the product that meets their individual needs. Visit us in one of our shops and experience it for yourself!
"With waipu.tv, we are once again one of the fastest growing IPTV providers in Germany in the third quarter."
Our IPTV product waipu.tv continues to grow. The past quarter was the strongest 3rd quarter ever! With 132 thousand net new subscribers (prior-year quarter: 81 thousand), we are once again one of the fastest-growing IPTV providers in Germany. We are well on the way to achieving our goal of providing around 2 million waipu.tv subscribers with an outstanding IPTV experience by the end of the year. The trade magazine 'Digital Fernsehen' also recently singled out waipu.tv as the price-performance winner in a major test.
01 Key figures
02 Letter to our shareholders
03 Business performance
08 Selected financial information
14 Further information
freenet AG
2024 nine-month statement
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Just in time for the start of the Bundesliga in August, waipu.tv expanded its partnership with Sky Deutschland and integrated live sport into its programme at a special price. waipu.tv now cooperates with every relevant streaming provider on the market and continues to position itself as a content aggregator.
We are setting the right priorities in both our Mobile Communications and our IPTV business. We are constantly adapting to changing customer needs in our Mobile Communications business in order to consolidate our market position. In the IPTV business, we remain on our offensive course and want to grow as strongly as possible. You will find out what financial ambitions we are pursuing with this focus and what you as a shareholder can expect in the future on 8 November when we present our financial ambition for 2028.
We look forward to the next few years with you by our side!
Kind regards
Your freenet Executive Board
Business performance
Primary note
Gravis Computervertriebsgesellschaft mbH, Berlin (hereinafter referred to as "Gravis") discontinued its business operations on 30 June 2024. In accordance with the IFRS 5 accounting standard, the activities of Gravis and certain business transactions directly related to the closure of Gravis in other freenet AG Group companies represent the discontinued operations of Gravis. The result of this division is recognised separately in the income statement in the line "Consolidated profit from discontinued operations". In accordance with IFRS 5.34, the prior year's figures in the income statement and cash flow statement have been adjusted.
Customer development and earnings performance
The number of freenet subscribers increased by 468.3 thousand to 9,961.0 thousand in the nine-month period of 2024 (year-end 2023: 9,492.7 thousand), driven primarily by the strong growth in waipu.tv subscribers. As a result, revenues increased by 2.9% to EUR 1,816.4 million compared to the prior-year period (EUR 1,765.2 million).
Table 1: Customer development
| In '000s | 30.9.2024 | 31.12.2023 | Change | |
|---|---|---|---|---|
| absolute | relative | |||
| Postpaid customers | 7,497.6 | 7,418.3 | 79.3 | 1.1% |
| App-based tariffs¹ | 119.2 | 121.3 | -2.1 | -1.8% |
| Mobile Communications segment | 7,616.8 | 7,539.6 | 77.2 | 1.0% |
| freenet TV subscribers (RGU) | 513.7 | 583.8 | -70.1 | -12.0% |
| waipu.tv subscribers | 1,830.5 | 1,369.3 | 461.2 | 33.7% |
| TV and Media segment | 2,344.2 | 1,953.0 | 391.1 | 20.0% |
| Number of subscribers (Total) | 9,961.0 | 9,492.7 | 468.3 | 4.9% |
¹ Includes subscribers of freenet FUNK and freenet FLEX
At EUR 1,522.0 million, revenues in the Mobile Communications segment were slightly higher than in the prior-year period (EUR 1,514.5 million). This increase is mainly due to higher service revenues, which grew by EUR 9.9 million to EUR 1,286.2 million in the nine-month period of 2024 (prior-year period: EUR 1,276.3 million). This increase is mainly due to the 79.3 thousand increase in the postpaid customer base to 7,497.6 thousand (year-end 2023: 7,418.3 thousand) in conjunction with a stable ARPU (Average Revenue Per User) of EUR 17.9 (prior-year period: EUR 18.0).
freenet AG
2024 nine-month statement
Back to contents
01 Key figures
02 Letter to our shareholders
03 Business performance
08 Selected financial information
14 Further information
Table 2: Revenue and earnings figures for freenet AG ${}^{1}$
| In EUR million | 9M/2024 | 9M/2023 (adjusted) | Change | |
|---|---|---|---|---|
| absolute | relative | |||
| Revenues | 1,816.4 | 1,765.2 | 51.2 | 2.9% |
| Mobile Communications segment | 1,522.0 | 1,514.5 | 7.5 | 0.5% |
| Service revenues (Total) | 1,286.2 | 1,276.3 | 9.9 | 0.8% |
| TV and Media segment | 291.0 | 251.8 | 39.2 | 15.6% |
| Gross profit | 713.2 | 670.0 | 43.2 | 6.4% |
| Overheads | -333.2 | -293.1 | -40.1 | 13.7% |
| EBITDA | 380.0 | 376.8 | 3.1 | 0.8% |
| Adjusted EBIT 2 | 272.0 | 266.8 | 5.1 | 1.9% |
| Financial result | -22.1 | -18.5 | -3.6 | 19.6% |
| Adjusted EBT 3 | 249.9 | 248.4 | 1.5 | 0.6% |
| Adjusted consolidated profit 2 | 231.1 | 198.0 | 33.1 | 16.7% |
1 Relates exclusively to continuing operations.
2 Figure for the 2023 financial year adjusted for effects from the amortisation of the mobilcom-debitel trademark.
The TV and Media segment recorded a significant increase in revenues of $15.6\%$ to EUR 291.0 million (prior-year period: EUR 251.8 million). This is due in particular to the significant growth in waipu.tv subscribers of 461.2 thousand to 1,830.5 thousand (year-end 2023: 1,369.3 thousand). Overall, the number of subscription customers in the TV business rose by 391.1 thousand to 2,344.2 thousand in the nine-month period of 2024 (year-end 2023: 1,953.0 thousand). The ongoing decline in freenet TV subscribers by 70.1 thousand to 513.7 thousand (year-end 2023: 583.8 thousand) was significantly mitigated in revenues as a result of a materialising price increase.
The increase in service revenues in both product-orientated segments is also reflected in the development of gross profit. The new long-term contracts concluded with the three established network operators in the first half of the year also had a positive effect on gross profit. As a result, this increased by EUR 43.2 million to EUR 713.2 million compared to the same period in 2023 (EUR 670.0 million). The gross profit margin improved by 1.3 percentage points to $39.3\%$ (prior-year period: $38.0\%$ ).
At EUR 333.2 million, overheads as the difference between gross profit and EBITDA were EUR 40.1 million higher than in the nine-month period of 2023 (EUR 293.1 million). Other operating expenses increased by EUR 22.9 million year-on-year to EUR 217.4 million (prior-year period: EUR 194.5 million), mainly due to the temporary increase in investments in brand awareness for waipu.tv (TV and Media segment) since
the third quarter of 2023. In addition, personnel expenses rose by EUR 14.1 million to EUR 168.1 million, mainly due to planned salary increases and higher expenses for the LTIP remuneration programmes.
Despite the temporary increase in investments in waipu.tv's brand awareness, EBITDA rose by $0.8\%$ year-on-year to EUR 380.0 million (prior-year period: EUR 376.8 million). The EBITDA margin at Group level fell slightly by 0.4 percentage points to $20.9\%$ (prior-year period: $21.3\%$ ) (see Table 3).
Table 3: Composition of Group EBITDA ${}^{1}$
| In EUR million | 9M/2024 | 9M/2023 (adjusted) | Change | |
|---|---|---|---|---|
| absolute | relative | |||
| Mobile Communications segment | 317.7 | 306.3 | 11.4 | 3.7% |
| TV and Media segment | 78.4 | 85.9 | -7.4 | -8.6% |
| Other / holding segment | -16.2 | -15.3 | -0.8 | 5.4% |
| freenet Group | 380.0 | 376.8 | 3.1 | 0.8% |
1 Relates exclusively to continuing operations.
Depreciation, amortisation and impairment decreased by EUR 100.5 million to EUR 108.0 million compared to the nine-month period of 2023, mainly due to the amortisation of the mobilcom-debitel trademark in the prior-year period in connection with the realignment of the brand strategy (EUR 98.5 million). This effect no longer applies since the brand was fully amortised as of 30 June 2023.
For better comparability, the earnings figures for the prior-year period below EBITDA (EBT and consolidated profit) are adjusted for effects resulting from the amortisation of the mobilcom-debitel trademark.
Compared to the nine-month period of 2023 (EUR -18.5 million), the financial result showed a EUR 3.6 million higher expense of EUR -22.1 million. The main reason for this was the lower share of earnings compared to the prior year in connection with contributions to the equity of Antenne Deutschland GmbH & Co. KG, which is consolidated using the equity method (EUR -4.5 million; prior-year period: EUR -2.1 million). In addition, net interest expenses in the nine-month period 2024 (EUR 18.0 million) were higher than in the prior-year period (EUR 16.7 million), mainly due to higher interest on variable-rate promissory note loans.
01 Key figures
02 Letter to our shareholders
03 Business performance
08 Selected financial information
14 Further information
freenet AG
2024 nine-month statement
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Due to the effects explained above, adjusted earnings before income taxes (adjusted EBT) totalled EUR 249.9 million. Compared to the prior-year period (EUR 248.4 million), this represents a slight increase of EUR 1.5 million.
Expenses from income taxes totalling EUR 18.8 million were reported in the nine-month period of 2024 (prior-year period: EUR 36.1 million). Current tax expenses of EUR 24.0 million (prior-year period: EUR 27.0 million) and deferred tax income of EUR 5.2 million (prior-year period: deferred tax expenses of EUR 9.1 million) were recognised. The deferred tax income of EUR 5.2 million recognised in the reporting period included a one-off effect of EUR 21.0 million from the Growth Opportunities Act that came into force. The amortisation of the mobilcom-debitel trademark resulted in deferred tax income of EUR 14.3 million in the prior-year period (reporting period: EUR 0).
Total adjusted consolidated profit from continuing operations increased significantly to EUR 231.1 million in the nine-month period of 2024 (prior year: EUR 198.0 million). Consolidated profit from discontinued operations totalled EUR -50.6 million (prior-year period: EUR -6.4 million), which includes all income and expenses attributable to the discontinued operations of Gravis. In essence, the consolidated profit from discontinued operations was significantly lower than in the prior year due to higher personnel expenses as well as depreciation, amortisation and impairments resulting from the closure of Gravis.
Net assets and financial position
Total assets as of 30 September 2024 stood at EUR 3,283.1 million and decreased by EUR 131.8 million compared to 31 December 2023 (EUR 3,414.9 million).
On the assets side, non-current assets decreased by EUR 66.6 million to EUR 2,580.5 million (year-end 2023: EUR 2,647.1 million). Lease assets decreased by EUR 56.8 million to EUR 236.8 million (year-end 2023: EUR 293.6 million), mainly due to scheduled depreciation, amortisation and impairment in connection with the discontinued operations of Gravis (EUR 17.8 million). In addition, intangible assets decreased by EUR 24.2 million to EUR 166.7 million (year-end 2023: EUR 190.8 million), mainly due to the scheduled amortisation of the exclusive distribution right with Media-Saturn Deutschland GmbH (EUR 19.2 million) and impairments in connection with the discontinued operations of Gravis (EUR 6.9 million).
Current assets fell by EUR 65.2 million to EUR 702.6 million as of the reporting date (year-end 2023: EUR 767.8 million). Liquid assets decreased by EUR 28.8 million to EUR 131.1 million (year-end 2023: EUR 159.8 million). This change was primarily due to the dividend payment of EUR 210.4 million in May 2024 and outflows in connection with the closure of Gravis, while a free cash flow of EUR 219.9 million was generated in the nine-month period of 2024. In addition, inventories decreased by EUR 23.7 million to EUR 40.2 million (year-end 2023: EUR 63.8 million), mainly in connection with the closure of Gravis as of 30 June 2024. The decrease in trade accounts receivable by EUR 21.4 million to EUR 291.3 million (year-end 2023: EUR 312.7 million) was mainly due to payments received for receivables from network operators.
Table 4: Condensed balance sheet of freenet AG
| In EUR million | 30.9.2024 | 31.12.2023 | Change | |
|---|---|---|---|---|
| absolute | relative | |||
| Non-current assets | 2,580.5 | 2,647.1 | -66.6 | -2.5% |
| Current assets | 702.6 | 767.8 | -65.2 | -8.5% |
| Assets | 3,283.1 | 3,414.9 | -131.8 | -3.9% |
| Equity | 1,434.6 | 1,436.9 | -2.3 | -0.2% |
| Non-current liabilities | 916.7 | 818.4 | 98.2 | 12.0% |
| Current liabilities | 931.8 | 1,159.6 | -227.7 | -19.6% |
| Equity and liabilities | 3,283.1 | 3,414.9 | -131.8 | -3.9% |
| Equity ratio | 43.7% | 42.1% | 1.6 PP | 3.9% |
On the liabilities side, equity decreased slightly by EUR 2.3 million to EUR 1,434.6 million as of 30 September 2024 (year-end 2023: EUR 1,436.9 million). With consolidated profit totalling EUR 180.5 million and other comprehensive income of EUR 27.6 million, the reduction in equity resulted from the dividend distribution of EUR 210.4 million. The equity ratio rose from $42.1\%$ at the end of December 2023 to $43.7\%$ at the end of September 2024 and remained well above the floor of $25\%$ defined by freenet.
Total non-current and current liabilities decreased by EUR 129.5 million to EUR 1,848.5 million (year-end 2023: EUR 1,978.0 million). Repayments of lease liabilities decreased by EUR 49.5 million to EUR 297.8 million (year-end 2023: EUR 347.2 million), mainly due to scheduled repayments. Including Lease receivables, net lease liabilities stood at EUR 268.9 million as of 30 September 2024 (year-end 2023: EUR 309.8 million). Trade accounts payable decreased by EUR 48.3 million to EUR 289.4 million (year-end 2023:
freenet AG
2024 nine-month statement
Back to contents
01 Key figures
02 Letter to our shareholders
03 Business performance
08 Selected financial information
14 Further information
EUR 337.7 million). This was mainly due to developments in liabilities to hardware suppliers as of the reporting date. At EUR 432.9 million, financial liabilities, which remain the largest item within non-current and current liabilities, were on the reporting date at the same level as of the end of 2023 (EUR 430.8 million). The effects of the scheduled repayments of two promissory note loan tranches from 2020 totalling EUR 166.5 million and the new borrowing of three promissory note loan tranches with a nominal value of EUR 165.0 million almost balanced each other out.
At 1.1 at the end of September 2024, the leverage in relation to the net financial liabilities was below the level at the end of 2023 (1.2) and thus well below the limit of 3.0 defined by freenet.
Table 5: Development of net financial liabilities and leverage
| In EUR million | 30.9.2024 | 31.12.2023 | Change absolute | relative | |
|---|---|---|---|---|---|
| + | Non-current financial liabilities | 414.7 | 250.1 | 164.6 | 65.8% |
| + | Current financial liabilities | 18.2 | 180.7 | -162.5 | -89.9% |
| + | Net lease liabilities | 268.9 | 309.8 | -41.0 | -13.2% |
| - | Liquid assets | 131.1 | 159.8 | -28.8 | -18.0% |
| = | Net financial liabilities | 570.8 | 580.9 | -10.1 | -1.7% |
| = | Leverage | 1.1 | 1.2 | 0.0 | -2.5% |
| - | Equity investments | 106.5 | 85.3 | 21.2 | 24.8% |
| = | Adjusted net financial liabilities | 464.3 | 495.6 | -31.3 | -6.3% |
| = | Adjusted leverage | 0.9 | 1.0 | -0.1 | -7.8% |
Liquidity situation
Compared to the prior-year period, the cash flow from operating activities from continuing operations decreased by EUR 7.0 million to EUR 305.0 million in the nine-month period of 2024 (prior-year period: EUR 311.9 million). The decrease is mainly due to the EUR 6.6 million increase in taxes paid.
Table 6: Liquidity situation of freenet AG ${}^{1}$
| In EUR million | 9M/2024 | 9M/2023 (adjusted) | Change | |
|---|---|---|---|---|
| absolute | relative | |||
| Cash flow from operating activities (1) | 305.0 | 311.9 | -7.0 | -2.2% |
| Cash flow from investing activities | -31.3 | -35.8 | 4.5 | -12.6% |
| Net capital expenditure (CapEx) (2) | -28.4 | -33.8 | 5.3 | -15.8% |
| Cash flow from financing activities | -269.0 | -337.2 | 68.3 | -20.2% |
| Cash outflows for the repayment of lease liabilities (3) | -56.6 | -59.1 | 2.5 | -4.2% |
| Net change in cash funds | -28.8 | -81.0 | 52.3 | 64.5% |
| Free cash flow (1)+(2)+(3) | 219.9 | 219.1 | 0.8 | 0.4% |
1 Relates exclusively to continuing operations.
The cash flow from investing activities from continuing operations totalled EUR -31.3 million in the nine-month period of 2024 compared to EUR -35.8 million in the prior-year period. Net cash investments decreased by EUR 5.3 million to EUR 28.4 million, partly due to lower investments in Media Broadcast's DAB+ broadcasting network compared to the prior year. The investments were financed entirely from own funds. In addition, there were cash outflows from the acquisition of SuperNova GmbH & Co. KG as of 1 January 2024 (EUR 6.5 million) and from contributions to the equity of Antenne Deutschland GmbH & Co. KG (EUR 4.5 million; prior-year period: EUR 2.1 million).
The cash flow from financing activities from continuing operations developed from EUR -337.2 million to EUR -269.0 million in the nine-month period of 2024 compared to the same period in 2023. Payments in the nine-month period of 2024 were attributable to the dividend distribution of EUR 210.4 million (prior-year period: EUR 199.7 million), repayments of two promissory note loan tranches with a nominal value of EUR 166.5 million (prior-year period: EUR 78.5 million) and repayments of lease liabilities totalling EUR 56.6 million (prior-year period: EUR 59.1 million). In contrast, the Group received funds totalling a nominal amount of EUR 165.0 million in the nine-month period of 2024 in connection with the issue of three promissory note loan tranches (prior-year period: EUR 0).
In the nine-month period of 2024, free cash flow from continuing operations totalled EUR 219.9 million, which corresponds to an increase of EUR 0.8 million compared to the same period in 2023 (EUR 219.1 million).
01 Key figures
02 Letter to our shareholders
03 Business performance
08 Selected financial information
14 Further information
freenet AG
2024 nine-month statement
Back to contents
07
Statement on the guidance for business performance
In the third quarter of 2024, there were no significant changes with regard to the risks and opportunities of future business performance. The risks and opportunities to which freenet is exposed in the course of its ongoing business activities are presented in the 2023 annual report (p. 38 et seq.) and the 2024 half-year report (p. 10) and continue to apply in principle.
In light of this and the positive business performance in the past nine months of this year as well as the positive outlook for the operating business for the last quarter of 2024, the Executive Board is raising the guidance for revenues made in the 2023 annual report (p. 36 et seq.).
The adjustment of the guidance for revenues is primarily due to the increasing revenues in the TV and Media segment (in particular from waipu.tv). The Executive Board now expects moderate growth in revenues for the 2024 financial year (priority: stable performance). In addition, the expectation corridor for EBITDA is specified and the guidance for free cash flow is narrowed and slightly increased. The Executive Board expects EBITDA of EUR 500 million to EUR 515 million (priority: EUR 495 million to EUR 515 million) and free cash flow of between EUR 270 million and EUR 285 million (priority: EUR 260 million to EUR 280 million) for the 2024 financial year.
The guidance for the other financial and non-financial performance indicators remains unchanged.
Table 7: Guidance for business performance
| Financial performance indicators
In EUR million / as indicated | 2023 reference value
(adjusted) | 2024 guidance
(28.2.2024) | Confirmed 2024 guidance
(15.5.2024) | Confirmed 2024 guidance
(7.8.2024) | Updated 2024 guidance
(7.11.2024) | Change in guidance | 9M / 2024 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Revenues^{1} | 2,383.0 | Stable performance | Stable performance | Stable performance | Moderate growth | ↑ | 1,816.4 |
| EBITDA^{1} | 500.9 | 495 – 515 | 495 – 515 | 495 – 515 | 500 – 515 | → | 380.0 |
| Free cash flow^{1} | 276.6 | 260 – 280 | 260 – 280 | 260 – 280 | 270 – 285 | ↑ | 219.9 |
| Postpaid ARPU (in EUR) | 18.0 | Stable performance | Stable performance | Stable performance | Moderate growth | → | 17.9 |
| Non-financial performance indicators
In '000s | 31.12.2023 reference value | 2024 guidance
(28.2.2024) | Confirmed 2024 guidance
(15.5.2024) | Confirmed 2024 guidance
(7.8.2024) | Confirmed 2024 guidance
(7.11.2024) | Change in guidance | 30.9.2024 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Postpaid customer base | 7,418.3 | Moderate growth | Moderate growth | Moderate growth | Moderate growth | → | 7,497.6 |
| freenet TV subscribers (RGU) | 583.8 | Noticeable decrease | Noticeable decrease | Noticeable decrease | Noticeable decrease | → | 513.7 |
| waipu.tv subscribers | 1,369.3 | Significant growth | Significant growth | Significant growth | Significant growth | → | 1,830.5 |
1 Relates exclusively to continuing operations.
↑ above prior guidance
→ unchanged from prior guidance
♣ below prior guidance
Büdelsdorf, 7 November 2024
freenet AG
The Executive Board
08
freenet AG
2024 nine-month statement
Back to contents
01 Key figures
02 Letter to our shareholders
03 Business performance
08 Selected financial information
14 Further information
Selected financial information
Consolidated income statement
| In EUR million / as indicated | 9M / 2024 | 9M / 2023 (adjusted) |
|---|---|---|
| Revenues | 1,816.4 | 1,765.2 |
| Other operating income | 34.4 | 38.1 |
| Other own work capitalised | 17.9 | 17.4 |
| Cost of materials | -1,103.2 | -1,095.2 |
| Personnel expenses | -168.1 | -154.1 |
| Other operating expenses | -217.4 | -194.5 |
| Thereof: result from impairment losses on financial assets and contractual assets | -12.2 | -13.0 |
| Thereof: excluding result from impairment losses on financial assets and contractual assets | -205.2 | -181.5 |
| EBITDA¹ | 380.0 | 376.8 |
| Depreciation, amortisation and impairment | -108.0 | -208.5 |
| EBIT² | 272.0 | 168.4 |
| Result of equity-accounted investments | -4.3 | -1.9 |
| Interest and similar income | 5.2 | 4.3 |
| Interest and similar expenses | -23.2 | -21.1 |
| Other financial result | 0.3 | 0.2 |
| Financial result | -22.1 | -18.5 |
| Earnings before taxes | 249.9 | 149.9 |
| Income taxes | -18.8 | -36.1 |
| Consolidated profit from continuing operations | 231.1 | 113.8 |
| Consolidated profit from discontinued operations | -50.6 | -6.4 |
| Consolidated profit | 180.5 | 107.4 |
| Consolidated profit attributable to shareholders of freenet AG | 182.0 | 105.7 |
| Consolidated profit attributable to non-controlling interests | -1.5 | 1.7 |
| Earnings per share (EPS) from continuing operations, basic and diluted (in EUR) | 1.96 | 0.94 |
| Earnings per share (EPS) from discontinued operations, basic and diluted (in EUR) | -0.43 | -0.05 |
| Earnings per share (EPS), basic and diluted (in EUR) | 1.53 | 0.89 |
| Weighted average number of shares outstanding in units, basic and diluted (in millions) | 118.9 | 118.9 |
¹ EBITDA is defined as Earnings before interest and taxes (EBIT) plus depreciation, amortisation and impairment.
² EBIT is defined as Earnings before interest and taxes (EBIT).
01 Key figures
02 Letter to our shareholders
03 Business performance
08 Selected financial information
14 Further information
freenet AG
2024 nine-month statement
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09
Consolidated balance sheet
| Assets | ||
|---|---|---|
| In EUR million | 30.9.2024 | 31.12.2023 |
| Non-current assets | ||
| Intangible assets | 166.7 | 190.8 |
| Lease assets | 236.8 | 293.6 |
| Goodwill | 1,385.0 | 1,379.8 |
| Property, plant and equipment | 113.7 | 129.4 |
| Equity-accounted investments | 0.5 | 0.3 |
| Deferred income tax assets | 118.3 | 108.2 |
| Trade accounts receivable | 41.2 | 44.8 |
| Other receivables and other assets | 86.6 | 90.7 |
| Other financial assets | 139.6 | 126.7 |
| Contract acquisition costs | 292.1 | 282.9 |
| 2,580.5 | 2,647.1 | |
| Current assets | ||
| Inventories | 40.2 | 63.8 |
| Current income tax assets | 0.2 | 0.2 |
| Trade accounts receivable | 291.3 | 312.7 |
| Other receivables and other assets | 174.2 | 160.5 |
| Other financial assets | 65.8 | 70.7 |
| Liquid assets | 131.1 | 159.8 |
| 702.6 | 767.8 | |
| Total assets | 3,283.1 | 3,414.9 |
| Equity and liabilities | ||
| --- | --- | --- |
| In EUR million | 30.9.2024 | 31.12.2023 |
| Equity | ||
| Share capital | 118.9 | 118.9 |
| Capital reserve | 567.5 | 567.5 |
| Accumulated other comprehensive income | - 134.0 | - 161.5 |
| Consolidated balance sheet result | 887.4 | 915.8 |
| Equity attributable to shareholders of freenet AG | 1,439.9 | 1,440.6 |
| Equity attributable to non-controlling interests | - 5.2 | - 3.8 |
| 1,434.6 | 1,436.9 | |
| Non-current liabilities | ||
| Lease liabilities | 219.9 | 269.0 |
| Other liabilities and accruals | 112.8 | 118.1 |
| Other financial liabilities | 39.0 | 56.8 |
| Financial liabilities | 414.7 | 250.1 |
| Pension provisions | 69.7 | 68.2 |
| Other provisions | 60.5 | 56.2 |
| 916.7 | 818.4 | |
| Current liabilities | ||
| Lease liabilities | 77.9 | 78.3 |
| Trade accounts payable | 289.4 | 337.7 |
| Other liabilities and accruals | 436.1 | 443.8 |
| Other financial liabilities | 34.2 | 38.3 |
| Current income tax liabilities | 50.6 | 54.2 |
| Financial liabilities | 18.2 | 180.7 |
| Other provisions | 25.4 | 26.6 |
| 931.8 | 1,159.6 | |
| Total equity and liabilities | 3,283.1 | 3,414.9 |
10
freenet AG
2024 nine-month statement
Back to contents
01 Key figures
02 Letter to our shareholders
03 Business performance
08 Selected financial information
14 Further information
Consolidated statement of cash flows
| In EUR million | 9M / 2024 | 9M / 2023 (adjusted) |
|---|---|---|
| Earnings before interest and taxes (EBIT) from continuing operations | 272.0 | 168.4 |
| Adjustments: | ||
| Depreciation, amortisation and impairment of non-current assets | 108.0 | 208.5 |
| Dividends received from equity investments | 0.1 | 0.0 |
| Profits/losses from the disposal of non-current assets | -0.1 | 0.4 |
| Increase in networking capital not attributable to investing or financing activities | -35.6 | -52.9 |
| Cash inflows from the redemption of financial assets from leases | 11.3 | 10.6 |
| Capitalisation of contract acquisition costs | -237.8 | -207.6 |
| Amortisation of contract acquisition costs | 228.6 | 217.2 |
| Taxes paid | -29.4 | -22.7 |
| Income from interest and other financial result | 3.4 | 3.7 |
| Interest paid | -15.5 | -13.7 |
| Cash flow from operating activities from continuing operations | 305.0 | 311.9 |
| Cash flow from operating activities from discontinued operations | -27.9 | -12.9 |
| Cash flow from operating activities | 277.1 | 299.0 |
| Cash outflows for investments in property and intangible assets | -31.5 | -36.2 |
| Cash inflows from the disposal of property and intangible assets | 3.0 | 2.4 |
| Cash outflows for the acquisition of subsidiaries | -6.5 | 0.0 |
| Cash inflows from the sale of equity-accounted companies | 0.1 | 0.4 |
| Cash outflows into equity of equity-accounted investments | -4.5 | -2.1 |
| Cash outflows to acquire other equity investments | -0.1 | -0.2 |
| Proceeds from the sale of other investments | 8.2 | 0.0 |
| Cash flow from investing activities from continuing operations | -31.3 | -35.8 |
| Cash flow from investing activities from discontinued operations | -0.4 | -3.4 |
| Cash flow from investing activities | -31.6 | -39.2 |
| Cash outflows to company owners and minority shareholders | -210.4 | -199.7 |
| Proceeds from the raising of financial liabilities | 164.5 | 0.0 |
| Cash outflows from the repayment of financial liabilities | -166.5 | -78.5 |
| Cash outflows for the repayment of lease liabilities | -56.6 | -59.1 |
| Cash flow from financing activities from continuing operations | -269.0 | -337.2 |
| Cash flow from financing activities from discontinued operations | -5.3 | -3.6 |
| Cash flow from financing activities | -274.2 | -340.8 |
| Net change in cash funds | -28.8 | -81.0 |
| Cash funds at the beginning of the period | 159.8 | 178.0 |
| Cash funds at the end of the period | 131.1 | 97.0 |
01 Key figures
02 Letter to our shareholders
03 Business performance
08 Selected financial information
14 Further information
freenet AG
2024 nine-month statement
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Composition of cash funds
| In EUR million | 30.9.2024 | 30.9.2023 |
|---|---|---|
| Liquid assets | 131.1 | 97.0 |
| Cash funds | 131.1 | 97.0 |
Composition of free cash flow
| In EUR million | 9M/2024 | 9M/2023 (adjusted) |
|---|---|---|
| Cash flow from operating activities from continuing operations | 305.0 | 311.9 |
| Cash outflows for investments in property, plant and equipment and intangible assets from continuing operations | -31.5 | -36.2 |
| Cash inflows from the disposal of property, plant and intangible assets from continuing operations | 3.0 | 2.4 |
| Cash outflows for the repayment of lease liabilities from continuing operations | -56.6 | -59.1 |
| Free cash flow from continuing operations | 219.9 | 219.1 |
- Free cash flow is a non-GAAP key figure.
12
freenet AG
2024 nine-month statement
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01 Key figures
02 Letter to our shareholders
03 Business performance
08 Selected financial information
14 Further information
Segment report
1 January to 30 September 2024
| In EUR million | Mobile Communications | TV and Media | Other / holding | Elimination of intersegment revenues and expenses | Total |
|---|---|---|---|---|---|
| Third-party revenues | 1,512.1 | 281.7 | 22.6 | 0.0 | 1,816.4 |
| Intersegment revenues | 9.9 | 9.3 | 13.2 | – 32.4 | 0.0 |
| Total revenues | 1,522.0 | 291.0 | 35.8 | – 32.4 | 1,816.4 |
| Cost of materials to third parties | – 978.9 | – 109.9 | – 14.4 | 0.0 | – 1,103.2 |
| Intersegment cost of materials | – 25.2 | – 1.3 | – 0.5 | 27.0 | 0.0 |
| Total cost of materials | – 1,004.0 | – 111.3 | – 14.9 | 27.0 | – 1,103.2 |
| Segment gross profit | 517.9 | 179.7 | 20.9 | – 5.4 | 713.2 |
| Other operating income | 34.8 | 0.9 | 2.8 | – 4.1 | 34.4 |
| Other own work capitalised | 12.3 | 4.3 | 1.3 | 0.0 | 17.9 |
| Personnel expenses | – 88.9 | – 49.8 | – 29.4 | 0.0 | – 168.1 |
| Other operating expenses | – 158.5 | – 56.6 | – 11.8 | 9.5 | – 217.4 |
| Thereof loss allowances on financial assets and contract assets | – 13.8 | 1.7 | 0.0 | 0.0 | – 12.2 |
| Thereof without loss allowances on financial assets and contract assets | – 144.7 | – 58.2 | – 11.8 | 9.5 | – 205.2 |
| Total overheads¹ | – 200.2 | – 101.3 | – 37.1 | 5.4 | – 333.2 |
| Thereof intersegment allocation | – 4.9 | – 2.0 | 1.5 | 5.4 | |
| Segment EBITDA | 317.7 | 78.4 | – 16.2 | 0.0 | 380.0 |
| Depreciation, amortisation and impairment | – 108.0 | ||||
| EBIT | 272.0 | ||||
| Financial result | – 22.1 | ||||
| Income taxes | – 18.8 | ||||
| Consolidated profit from continuing operations | 231.1 | ||||
| Consolidated profit from discontinued operations attributable to the shareholders of freenet AG | – 50.6 | ||||
| Consolidated profit | 180.5 | ||||
| Consolidated profit attributable to shareholders of freenet AG | 182.0 | ||||
| Consolidated profit attributable to non-controlling interests | – 1.5 | ||||
| Net cash investments | 16.9 | 10.0 | 1.9 | 28.8 | |
| Thereof from continuing operations | 16.5 | 10.0 | 1.9 | 28.5 | |
| Thereof from discontinued operations | 0.4 | 0.0 | 0.0 | 0.4 |
¹ Overheads are defined as the difference between gross profit and EBITDA and include the items operating income, other own work capitalised, personnel expenses and other operating expenses.
01 Key figures
02 Letter to our shareholders
03 Business performance
08 Selected financial information
14 Further information
freenet AG
2024 nine-month statement
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1 January to 30 September 2023 (adjusted)
| In EUR million | Mobile Communications | TV and Media | Other / holding | Elimination of intersegment revenues and expenses | Total |
|---|---|---|---|---|---|
| Third-party revenues | 1,504.6 | 243.0 | 17.6 | 0.0 | 1,765.2 |
| Intersegment revenues | 9.9 | 8.8 | 12.2 | – 30.9 | 0.0 |
| Total revenues | 1,514.5 | 251.8 | 29.8 | – 30.9 | 1,765.2 |
| Cost of materials to third parties | – 1,001.6 | – 82.0 | – 11.6 | 0.0 | – 1,095.2 |
| Intersegment cost of materials | – 17.3 | – 7.6 | – 0.5 | 25.4 | 0.0 |
| Total cost of materials | – 1,018.9 | – 89.7 | – 12.0 | 25.4 | – 1,095.2 |
| Segment gross profit | 495.6 | 162.1 | 17.8 | – 5.5 | 670.0 |
| Other operating income | 37.9 | 0.6 | 2.9 | – 3.4 | 38.1 |
| Other own work capitalised | 11.5 | 4.5 | 1.3 | 0.0 | 17.4 |
| Personnel expenses | – 85.5 | – 43.0 | – 25.6 | 0.0 | – 154.1 |
| Other operating expenses | – 153.3 | – 38.4 | – 11.7 | 8.9 | – 194.5 |
| Thereof loss allowances on financial assets and contract assets | – 12.8 | – 0.5 | 0.2 | 0.0 | – 13.0 |
| Thereof without loss allowances on financial assets and contract assets | – 140.5 | – 37.9 | – 12.0 | 8.9 | – 181.5 |
| Total overheads¹ | – 189.3 | – 76.3 | – 33.1 | 5.5 | – 293.1 |
| Thereof intersegment allocation | – 6.2 | – 0.8 | 1.5 | 5.5 | |
| Segment EBITDA | 306.3 | 85.9 | – 15.3 | 0.0 | 376.8 |
| Depreciation, amortisation and impairment | – 208.5 | ||||
| EBIT | 168.4 | ||||
| Financial result | – 18.5 | ||||
| Income taxes | – 36.1 | ||||
| Consolidated profit from continuing operations | 113.8 | ||||
| Consolidated profit from discontinued operations attributable to the shareholders of freenet AG | – 6.4 | ||||
| Consolidated profit | 107.4 | ||||
| Consolidated profit attributable to shareholders of freenet AG | 105.7 | ||||
| Consolidated profit attributable to non-controlling interests | 1.7 | ||||
| Net cash investments | 17.7 | 16.4 | 3.1 | 37.2 | |
| Thereof from continuing operations | 14.4 | 16.4 | 3.1 | 33.9 | |
| Thereof from discontinued operations | 3.3 | 0.0 | 0.0 | 3.3 |
¹ Overheads are defined as the difference between gross profit and EBITDA and include the items operating income, other own work capitalised, personnel expenses and other operating expenses.
14
freenet AG
2024 nine-month statement
Back to contents
01 Key figures
02 Letter to our shareholders
03 Business performance
08 Selected financial information
14 Further information
Further information
Quarterly overview
Selected quarterly figures are available as an Excel file at fn.de/downloadsir.
Financial calendar
| Datum | Event |
|---|---|
| 4 March 2025 | Publication of the preliminary figures for the 2024 financial year* |
| 27 March 2025 | Publication of the 2024 annual report |
| 7 May 2025 | Publication of the 2025 quarterly statement* |
| 13 May 2025 | 2025 Annual General Meeting in Hamburg |
| 6 August 2025 | Publication of the 2025 half-year report* |
| 5 November 2025 | Publication of the 2025 nine-month statement* |
- Publication after close of trading (Xetra); conference call on the following day
All dates are subject to possible changes. The current status of the financial calendar (including conference call dates) is available at fn.de/calendar.
Further information on freenet and the share is available at fn.de/investors.
01 Key figures
02 Letter to our shareholders
03 Business performance
08 Selected financial information
14 Further information
freenet AG
2024 nine-month statement
Back to contents
15
Imprint and contact
freenet AG
Hollerstraße 126
24782 Büdelsdorf, Germany
Phone: +49 (0) 43 31/69-10 00
Investor Relations & ESG Reporting
Deelbogenkamp 4
22297 Hamburg, Germany
Phone: +49 (0) 40/5 13 06-7 78
E-mail: [email protected]
Consultancy, concept & design
Silvester Group, Hamburg, Germany
www.silvestergroup.com
The nine-month statement is also available in German. In case of doubt, the German version shall prevail.
For more information on 2023 financial year including statements from our Executive Board members, go to fn.de/23fy
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