EQS-News: freenet Executive Board formulates financial ambition until 2028 - EBITDA and free cash flow to grow significantly
EQS-News: freenet AG
/ Key word(s): Capital Markets Day/Capital Markets Day
freenet Executive Board formulates financial ambition until 2028 - EBITDA and free cash flow to grow significantly
Büdelsdorf, November 8, 2024 - The Executive Board of freenet AG [ISIN DE000A0Z2ZZ5] today extended the successfully achieved financial ambition 2025 into the 2028 financial year as part of the publication of the results for the 2024 nine-month period. The key message is that freenet is continuing to focus on its successful digital lifestyle strategy and is aiming significant growth, particularly in the IPTV segment. EBITDA is expected to increase at an average annual growth rate of around 4% to at least EUR 600 million by 2028 compared to the 2023 financial year, taking into account the expected market developments in the Mobile Communications segment as well as TV and Media. This corresponds to growth of at least EUR 100 million or around 20% over the entire period. The TV and Media segment is expected to make a significant contribution of at least EUR 80 million, including a EUR 20 million lower EBITDA contribution from Media Broadcast due to the decline in terrestrial TV business (B2B and B2C). In the IPTV business (waipu.tv), the EBITDA contribution is expected to increase by at least EUR 100 million. In this context, a further increase in the penetration of IPTV in the German TV market is assumed, which should lead to an increase in subscribers to around 3.5 million by the end of 2028 based on waipu.tv's good market positioning. Gross profit per IPTV customer is assumed to remain constant, without taking into account potential from targeted advertising, upselling of additional products or optimization of content costs. Ongoing continuity is expected in the Mobile Communications segment, which should lead to an additional EBITDA contribution of EUR 20 million by 2028. This includes an expected average annual increase in overheads and personnel costs of around 3%, which should be partially offset by a continuation of digitization and standardization efforts. Overall, the cost increases should be more than offset by a EUR 40 million increase in gross profit in the Mobile Communications segment. The basis for the increase in gross profit is the assumption of continued moderate customer growth with largely stable ARPU in the postpaid segment, as well as the continuous optimization of the successful omni-channel sales approach and the long-term secured relationships with the three relevant German mobile network operators. The Mobile Communications segment will therefore continue to serve as the foundation for high consistency and resilience in freenet AG's future business results. Based on EBITDA expectations, free cash flow is expected to increase to at least EUR 330 million in the same period. This also corresponds to growth of around 20% and a continued high cash conversion rate of more than 50%. This takes into account the gradual increase in current taxes paid due to the almost complete utilization of tax loss carryforwards by the end of 2028. A dividend policy of 80% of the free cash flow will be maintained in the future. The shareholders of freenet AG will therefore continue to benefit from an increasing dividend. The use of the remaining 20% of the free cash flow for share buybacks will be decided annually after the preliminary results have been determined. General remarks The 2028 Ambition presents an outlook based on the knowledge and results of the first nine months of 2024. It should be emphasized that no mergers & acquisitions (M&A) or potential inorganic measures were taken into account in this ambition. Likewise, no expansions to the product portfolio or additional new sources of revenue were included. The expectation for the development of the German IPTV market is in line with the projections and assumptions shared by other market participants. As a result, no major upheaval is expected in cable or satellite TV. Detailed information on the aforementioned content can be found in the presentation on Financial Ambition 2028. Contact us freenet AG Investor Relations & ESG Reporting Phone: +49 (0) 40/ 513 06 778 Mail: ir@freenet.ag Internet: fn.de/investors freenet AG Public Relations & Corporate Communications Phone: +49 (0) 40 / 513 06 777 E-mail: pr@freenet.ag
08.11.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. |
Language: | English |
Company: | freenet AG |
Hollerstrasse 126 | |
24782 Buedelsdorf | |
Germany | |
Phone: | +49 (0)40 51306-778 |
Fax: | +49 (0)40 51306-970 |
E-mail: | ir@freenet.ag |
Internet: | www.freenet.ag |
ISIN: | DE000A0Z2ZZ5, DE000A1KQXU0 |
WKN: | A0Z2ZZ , A1KQXU |
Indices: | MDAX, TecDAX |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
EQS News ID: | 2026107 |
End of News | EQS News Service |
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2026107 08.11.2024 CET/CEST
Boersengefluester.de (BGFL) provides an overview of the key figures on sales, earnings, cash flow and dividends to help you better assess the fundamental development of the respective companies. All information is entered manually in our database - the source is the respective annual reports. All estimates for future figures are provided by BGFL.
The most important financial data at a glance | ||||||||
2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024e | ||
Sales1 | 2.897,47 | 2.932,54 | 2.576,23 | 2.556,32 | 2.556,71 | 2.627,30 | 2.642,00 | |
EBITDA1,2 | 441,18 | 426,80 | 425,88 | 447,33 | 478,70 | 500,20 | 526,00 | |
EBITDA-Margin3 | 15,23 | 14,55 | 16,53 | 17,50 | 18,72 | 19,04 | 19,91 | |
EBIT1,4 | 311,99 | 269,95 | 262,98 | 250,04 | 129,40 | 246,10 | 264,00 | |
EBIT-Margin5 | 10,77 | 9,21 | 10,21 | 9,78 | 5,06 | 9,37 | 9,99 | |
Net Profit (Loss)1 | 212,16 | 184,73 | 561,01 | 191,20 | 81,85 | 156,30 | 171,00 | |
Net-Margin6 | 7,32 | 6,30 | 21,78 | 7,48 | 3,20 | 5,95 | 6,47 | |
Cashflow1,7 | 369,48 | 364,23 | 357,06 | 367,21 | 395,69 | 398,00 | 0,00 | |
Earnings per share8 | 1,74 | 1,49 | 4,44 | 1,62 | 0,67 | 1,30 | 1,44 | |
Dividend per share8 | 1,65 | 0,04 | 1,65 | 1,57 | 1,68 | 1,77 | 1,81 |
1 in Mio. Euro; 2 EBITDA = Earnings before interest, taxes, depreciation and amortisation; 3 EBITDA in relation to sales; 4 EBIT = Earnings before interest and taxes; 5 EBIT in relation to sales; 6 Net profit (-loss) in relation to sales; 7 Cashflow from operations; 8 in Euro; Source: boersengefluester.de
Auditor: PricewaterhouseCoopers
All relevant valuation ratios, dates and other investor information on your share at a glance. Good to know: All data comes from boersengefluester.de and is updated daily. This means you are always up to date. You can get brief explanations of the key figures by moving the cursor or mouse over the relevant field.
INVESTOR-INFORMATION | ||||||
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Freenet | ||||||
WKN | ISIN | Legal Type | Marketcap | IPO | Recommendation | Plus Code |
A0Z2ZZ | DE000A0Z2ZZ5 | AG | 3.229,34 Mio € | 05.03.2007 | Kaufen | 9F6F8MFV+7P |
PE 2025e | PE 10Y-Ø | BGFL-Ratio | Shiller-PE | PB | PCF | KUV |
17,99 | 15,74 | 1,14 | 14,78 | 2,63 | 8,11 | 1,23 |
Dividend '2022 in € |
Dividend '2023 in € |
Dividend '2024e in € |
Div.-Yield '2024e in % |
1,68 | 1,77 | 1,81 | 6,66% |
Annual General Meeting | Q1-figures | Q2-figures | Q3-figures | Annual press conference |
13.05.2025 | 07.05.2025 | 06.08.2025 | 07.11.2024 | 27.03.2025 |
Distance 60-days-line | Distance 200-days-line | Performance YtD | Performance 52 weeks | IPO |
-3,11% | +3,35% | +7,18% | +7,18% | +32,49% |
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