freenet reports €2,289.6 million in nine-month revenue and maintains 2026 guidance
Key Facts
freenet AG reported results for the first nine months of fiscal 2026 on November 11, posting consolidated revenue of €2,289.6 million, up 25.2% from the same period a year earlier. The company released the results after trading on Xetra closed. It attributed the revenue growth mainly to the integration of mobilezone Germany, which it acquired at the end of 2025. In the first half of the year, revenue had risen 24.7% to €1,512.9 million, with the company also citing the integration of the German business. freenet reaffirmed its full-year guidance despite a decline in adjusted operating profit during the period.
Adjusted earnings before interest, taxes, depreciation and amortization came to €372.5 million, down 5.7% from €395.1 million in the first nine months of 2025. The company said the decline was mainly due to the impact of a previously announced commercial agreement with a mobile network operator. freenet estimated that the agreement had a negative impact of about €32 million on adjusted earnings in its mobile communications segment during the nine months. The company expects the negative impact to reach about €50 million over 2026 and said it is fully factored into its full-year guidance. This puts revenue growth alongside clear pressure on adjusted operating profitability during the period.
In mobile communications, revenue reached €1,980.3 million, up 31.9% year over year. But adjusted earnings in the segment fell 10.6% to €286.3 million, compared with €320.1 million in the same period of 2025. The number of postpaid service customers increased by 104,000 from the end of 2025, reaching 8.345 million at the end of the third quarter of 2026. The company also sold 544,000 postpaid contracts through reselling during the nine months. The figures show growth in the customer and contract base alongside lower adjusted segment earnings under pressure from the commercial agreement.
In internet protocol television, waipu.tv added about 116,000 subscribers during the period, bringing its total subscriber base to 1.871 million at the end of the third quarter. Adjusted segment earnings rose 20.3% to €29.5 million, compared with €24.5 million a year earlier. In mid-October, freenet acquired the remaining stake of about 25% in waipu.tv for an initial purchase price of about €76 million. The company said the deal does not affect its 2026 guidance or announced dividend policy. Television's performance and waipu.tv's subscriber growth formed part of results across several segments, as mobile communications earnings declined.
The company reaffirmed its full-year 2026 adjusted earnings guidance range of €500 million to €530 million and adjusted free cash flow guidance of €270 million to €300 million. Adjusted free cash flow was €233.3 million in the first nine months, compared with €227.2 million in the same period last year, an increase of 2.7%. The cash conversion rate also rose to 62.7% from 57.5%. freenet's announced dividend policy included a guaranteed minimum of €2.00 per share for each of fiscal years 2026 to 2028. The company said the payout could be higher if allocating 80% of adjusted free cash flow results in a larger amount.
The reaffirmation of guidance follows freenet and Telefónica Deutschland's announcement on November 10 that they had signed a detailed term sheet aimed at continuing their partnership for another 10 years. Chief Executive Robin Harries described the agreement as a "long-term win for both sides" and said the companies see opportunities to grow together. According to the published calendar, freenet is scheduled to announce preliminary fiscal 2026 results after trading on Xetra closes on February 24, 2027. A conference call on full-year results will follow on February 25, 2027. The company said calendar dates may change.