EQS-News: freenet AG
/ Key word(s): Quarter Results/Quarterly / Interim Statement
freenet starts the 2023 financial year with a significant increase in EBITDA
Buedelsdorf, May 3, 2023 – freenet AG [ISIN DE000A0Z2ZZ5] today published its results for the first quarter of 2023. freenet continues success of previous quarters With a successful start to the year, freenet underscores its ambition to increase EBITDA by at least 4% on an annual average growth rate compared with the 2020 financial year and to achieve EBITDA of at least EUR 520 million in the 2025 financial year. For the 2023 financial year, the Executive Board reiterates the guidance made at the beginning of the year for EBITDA (EUR 480 to 500 million) and free cash flow (EUR 250 to 270 million). Table 1: Key figures of freenet AG
freenet is starting the 2023 financial year with a significant increase in profitability. The company increased EBITDA in the first quarter of the year by 8.5% compared with the prior-year quarter (EUR 118.0 million) to EUR 128.1 million. As a result, freenet's high cash conversion led to a free cash flow of EUR 64.6 million (prior-year period: EUR 62.7 million). The main reasons for the increased profitability are higher high-margin service revenues in the two operating segments Mobile Communications as well as TV and Media and a stable overhead cost base overall. The subscriber base1 grew by 1.3% to 9,159.5 thousand in the first three months of the year (year-end 2022: 9,042.4 thousand). The growth in waipu.tv subscribers was higher than at any previous start to the year (83.3 thousand), bringing the total to over one million at the end of March (1,053.3 thousand; year-end 2022: 970.0 thousand). Driven by customer growth and an increase in sales of digital lifestyle products, consolidated revenues rose by 3.4 % to EUR 637.8 million in the same period (prior-year period: EUR 616.8 million). Mobile Communications core business confirms positive trend: EBITDA increases by EUR 7.0 million The development of all key performance indicators in the past quarter confirms the predictability of business in the Mobile Communications segment in a positive sense. Table 2: Segment Mobile Communications
Stable postpaid ARPU of EUR 17.7 (prior-year period: EUR 17.7) and moderate growth in postpaid customers relevant for recurring revenues in the Mobile Communications segment (7,325.2 thousand; March 31, 2022: 7,182.8 thousand) combined with increased revenues from digital lifestyle products resulted in rising revenues of EUR 557.3 million (prior-year period: EUR 544.6 million). The particularly high-margin service revenues increased by EUR 7.2 million to EUR 416.5 million (prior-year period: EUR 409.3 million) and continue to represent the majority of segment revenues (75%). On balance, the segment contributed EBITDA of EUR 103.8 million, an increase of EUR 7.0 million (prior-year period: EUR 96.8 million) to the Group EBITDA. TV business remains profitable growth area: waipu.tv subscribers >1 million at end of March The TV and Media segment saw a significant increase in revenues of 9.4% to EUR 80.8 million (previous year's period: EUR 73.9 million). Table 3: Segment TV and Media
On the one hand, this is due to the significant growth in waipu.tv subscribers of 83.3 thousand to 1,053.3 thousand (year-end 2022: 970.0 thousand). On the other hand, Media Broadcast’s business development had a positive effect. The continued decline in freenet TV subscribers by 27.0 thousand to 658.6 thousand (year-end 2022: 685.6 thousand) was more than offset by the aforementioned effects and by a price increase at the end of last year. Overall, the number of subscribers in the TV business increased to 1,711.9 thousand in the first three months of 2023 (year-end 2022: 1,655.6 thousand). This resulted in a significant increase of 13.8 % in EBITDA to EUR 28.8 million compared to the prior-year period (EUR 25.3 million). Conference Call On Thursday, May 4, 2023 at 10:00 a.m. (CET), the conference call on the results for the first quarter of 2023 will take place. All interested parties can follow the conference call via webcast (listen-only mode). A recording will be made available afterwards. The presentation on the quarterly results is available online. The Annual Report 2022 was published on March 24, 2023. ****************************** 1 Total of postpaid, freenet FUNK and freenet FLEX, waipu.tv subscribers, freenet TV subscribers (RGU) 2 freenet FUNK and freenet FLEX customers
Note In the interest of clear and transparent presentation, alternative performance measures (APMs) are used in the financial statements of freenet AG and in ad hoc disclosures pursuant to Art. 17 MAR, in addition to the disclosures defined by the International Financial Reporting Standards (IFRSs). Information on the use, definition and calculation of APMs can be found in the freenet AG 2022 Annual Report from page 28 onwards. ****************************** Contact freenet AG Investor Relations & ESG Reporting Tel.: +49 (0) 40/ 513 06 778 e-mail: ir@freenet.ag
03.05.2023 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: | 1623697 |
End of News | EQS News Service |
|
1623697 03.05.2023 CET/CEST
source : webdisclosure.com