freenet AG Reports 25% Revenue Growth, Despite Profit Dip
freenet AG reported a 25.2% increase in revenue to €2.2896 billion for the first nine months of 2026, but saw a 5.7% decline in adjusted EBITDA to €372.5 million, according to a recent announcement. The revenue growth was largely fueled by the integration of mobilezone Germany, acquired at the end of 2025. Despite the dip in profitability, the company reaffirmed its full-year guidance, signaling confidence in its overall performance.
The decline in adjusted EBITDA was primarily attributed to a negative impact resulting from a commercial agreement with an unnamed mobile network operator – a previously disclosed issue expected to cost the company around €50 million for the full year. This impact, while substantial, did not alter the company’s long-term profitability outlook, as indicated in the filing. The situation with Telefónica Deutschland, which contributed to the negative impact, has been addressed with a new term sheet signed on November 10th, laying the foundation for a continued ten-year partnership.
Beyond the headline figures, freenet demonstrated growth in both its mobile communications and IPTV segments. The postpaid customer base increased by 104,000 to 8.345 million, while waipu.tv, its IPTV service, added 116,000 subscribers, reaching 1.871 million. The IPTV segment also showed strong profitability, with adjusted EBITDA increasing by 20.3% to €29.5 million. Notably, the company’s cash conversion rate remained high at around 63%, leading to an adjusted free cash flow of €233.3 million, up 2.7% year-over-year.
The company guarantees a minimum dividend of EUR 2.00 per share for the financial years 2026-2028, with the potential for a higher payout if 80% of the adjusted free cash flow exceeds this amount. The mixed results – strong revenue growth offset by a profitability dip tied to a specific commercial agreement – leave the full-year outlook dependent on maintaining customer growth and navigating the ongoing impact of the Telefónica partnership, while the high cash conversion rate provides a cushion for shareholder returns.