Freenet AG NA (ETR:FNTGn) on Friday beat analyst consensus estimates on every key metric in the first quarter of 2026, posting adjusted EBITDA of €122 million, above the median analyst estimate of €119.8 million.
Group revenue for the three months ended March 31 rose 26.1% to €761.9 million from a restated €604.3 million a year earlier, exceeding the €753.3 million consensus median estimate. Gross profit reached €242 million, ahead of the €232 million median forecast.
Adjusted free cash flow came in at €85.7 million, sharply above the €64.7 million consensus median and up from a restated €77.6 million a year earlier.
The figure included a €26 million adjustment related to the repayment of a liability arising from advance payments to a business partner of mobilezone, which the company excluded from reported free cash flow of €54 million, describing it as an atypical cash outflow.
“A successful start to the year – driven by IPTV and a refined Mobile Communications sales strategy,” chief executive Robin Harries and chief financial officer Ingo Arnold said in a statement.
Revenue in the Mobile Communications segment rose to €658.8 million from a restated €505.1 million a year earlier. The segment added 181,900 postpaid contracts through reselling activities during the quarter.
Postpaid average revenue per user (ARPU) fell to €16.6 from €17.5 a year earlier and was slightly below the €16.7 consensus estimate.
Adjusted EBITDA in the segment declined to €93.7 million from €103.9 million, reflecting the expected negative impact of an agreement with a network operator, the company said, adding that renegotiations are ongoing.
The IPTV segment reported revenue of €52.8 million, up from €49 million, while adjusted EBITDA rose 49% to €9 million from €6 million. waipu.tv subscribers increased by 42,100 from the end of 2025 to 1.80 million as of March 31.
The Other/Holding segment posted adjusted EBITDA of €19.3 million, up from a restated €16.7 million a year earlier.
Postpaid customers totalled 8.27 million at March 31, compared with 8.24 million at Dec. 31, 2025, broadly in line with the 8.27 million consensus estimate.
Consolidated profit attributable to Freenet shareholders fell to €47.6 million from a restated €57.9 million a year earlier. Earnings per share from continuing operations declined to €0.41 from €0.49.
The company’s equity ratio improved to 45% at March 31 from 41.7% at the end of 2025, while leverage fell to 1.1 times adjusted EBITDA from 1.2 times.
The executive board confirmed its full-year 2026 guidance for adjusted EBITDA of €500 million to €530 million and adjusted free cash flow of €270 million to €300 million.
