In This Article:
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EBITDA: EUR521.5 million, with a special effect from the sale of IP addresses.
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Free Cash Flow: EUR292 million, up 5.7% from 2023.
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Revenue Growth: Up 4% year-over-year.
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Dividend Proposal: EUR1.97 per share, equivalent to 80% of free cash flow.
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Subscriber Growth: Total subscribers increased by 6.9%, with 182,000 net adds.
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Postpaid Net Adds: 103,000 in the fourth quarter.
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Gross Profit: Increased from EUR915 million to EUR974 million.
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Mobile Revenue: Stable development with a slight increase in service revenues.
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TV and Media Revenue: Nearly EUR400 million, with waipu.tv contributing nearly 50%.
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CapEx: EUR38 million in 2024, expected to increase in 2025.
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Guidance for 2025: EBITDA of EUR520 million to EUR540 million, free cash flow of EUR300 million to EUR320 million.
Release Date: March 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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freenet AG (WBO:FNTN) reported a record EBITDA of over EUR 520 million for 2024, marking a successful year.
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The company achieved a significant increase in free cash flow, reaching EUR 292 million, up 5.7% from 2023.
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freenet AG's Mobile Communications sector performed well, with strong postpaid net additions and long-term contracts secured.
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The waipu.tv service saw substantial growth, with nearly 600,000 new customers added, contributing positively to EBITDA.
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The company plans to distribute 80% of its free cash flow as dividends and has announced a share buyback program for 2025.
Negative Points
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The freenet TV segment continues to lose subscribers, with no clear floor in sight, impacting overall growth.
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There was a decrease in gross profit in Q4 2024 compared to the previous year, partly due to lower performance bonuses.
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The company faced increased bad debt provisions and higher HR costs due to inflation, affecting EBITDA.
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ARPU (Average Revenue Per User) showed a slight decrease, indicating potential challenges in maintaining revenue per customer.
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The IPTV segment experienced churn from Telefonica customers, impacting net sales despite overall growth.
Q & A Highlights
Q: Can you discuss the competitive dynamics in the German Mobile market and the impact of M&Os using their own channels? A: Christoph Vilanek, CEO, explained that while there were concerns about unlimited offers from competitors, customer understanding was limited, and it did not significantly impact freenet's churn or intake. He noted that freenet benefits from the current market dynamics, with competitors like Vodafone struggling, allowing freenet to capitalize on the situation.