Q1 2025 freenet AG Earnings Call Transcript
Key Points
- Revenues grew as expected, with adjusted EBITDA in the mobile segment remaining stable and significant growth in the TV and media segment.
- Postpaid mobile growth nearly tripled from the previous year, with 53,000 new units, driven by new tariffs and agreements.
- Strong performance in media markets and retail channels, with increased brand recognition and likelihood of purchase due to sports sponsorships.
- waipu.tv subscriber growth of 60,000 net adds, with successful CTV advertising tests leading to new revenue streams.
- Free cash flow performance exceeded expectations, with better-than-expected results in the first quarter.
- Customer growth in both segments was lower than anticipated, attributed to market fatigue and uncertainties in German consumption.
- Adjusted EBITDA decreased slightly from EUR127 million to EUR126 million, impacted by increased marketing expenses.
- Service revenues in the mobile segment saw a slight decrease, with a focus on higher-margin hardware revenues.
- Churn in freenet TV was at minus 20%, consistent with previous trends, but still a concern.
- Media Broadcast segment faces expected revenue and EBITDA declines due to reduced terrestrial end consumer payments and discounts with public television stations.
Good morning, ladies and gentlemen, and welcome to the freenet AG conference call on the Q1 2025 results. (Operator Instructions)
Let me now hand the floor over to Christoph Vilanek, the CEO of freenet AG.
Good morning, everybody. Thanks for joining today's call. Highly traditional, I'm going to start with some qualitative assessment of the last quarter and Ingo will then go into financial details followed by, hopefully, Q&A,
Page number 1, we believe the good start into the year, we called it the sound start, with solid key financials, revenues grew as expected, adjusted EBITDA on mobile is stable, whereas the TV and media is growing significantly. We'll comment on that in a second and free cash flow is also in line with the guidance and our internal planning.
On the pure operational KPI customer growth in both segments is okay. I think that is definitely the point where everybody was maybe a bit disappointed. I'm not at all disappointed to
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
