The Freenet share: Dividend and forecast attract The German telecommunications company Freenet recently announced that it will be paying a dividend to its shareholders for the first time in five years. This news, along with a positive financial forecast, has sparked interest among investors. Freenet, which provides mobile and internet services, has been facing tough competition in the German market. However, the company’s CEO, Christoph Vilanek, remains confident in their ability to perform well in the coming years. „We have a clear strategy for growth and are continuously investing in our business,“ Vilanek stated. The company’s positive outlook is reflected in its financial forecast, which predicts an increase in revenue and earnings for the current fiscal year. This has led to a rise in the company’s stock value, making it an attractive investment option for shareholders. Investors are also excited about the possibility of receiving a dividend, which has not been paid out since 2015. Freenet has announced a dividend of 1 euro per share, a significant amount that has piqued the interest of many investors. This news has caused a surge in Freenet’s stock price, with an increase of over 10% since the announcement. This positive development in the company’s financials has not only attracted investors, but also solidified Freenet’s position as a strong player in the German telecommunications market. With a promising forecast and the potential for a dividend, Freenet’s stock is definitely one to watch for investors seeking growth and stability in their portfolio.
The Freenet share has performed very well in the past few days after the presentation of preliminary figures and has gained around 5 percent. The stock is now trading at about the same level as at the beginning of the year (as of March 4, 2024, around 12 pm).
On the one hand, the telecommunications provider was able to achieve its targets for the past financial year. But above all, the increase in dividends has sparked increased interest among investors. In terms of dividend yield, Freenet is one of the most exciting stocks in this sector.
Freenet with preliminary figures for 2023 and outlook In the 2023 financial year, Freenet gained around 450,000 new customers and now has nearly 9.5 million subscribers. Revenue increased by 2.8 percent to around 2.63 billion. EBITDA even rose by 4.5 percent to 500 million euros and free cash flow by 5.3 percent to just under 263 million euros.
For the current year 2024, Freenet is cautiously optimistic: Revenue is expected to remain stable compared to 2023, while EBITDA and cash flow could grow slightly. EBITDA is forecasted to be between 495 and 515 million euros in 2024, while free cash flow is expected to be between 260 and 280 million euros according to the plan.
Freenet pays even more dividends For many investors, Freenet has now become a true dividend stock. The proposal for the new dividend is 1.77 euros, up from 1.68 euros in the previous year. In terms of planning for the cash flow of the 2024 financial year, the dividend is also expected to remain at least stable next year.
Based on the current share price, the dividend yield for Freenet shares is currently around 7 percent. For dividend-oriented investors, this is already a significant figure.
Freenet share: growth and dividend While the telecommunications provider is not planning any and at most a slight increase in revenue in 2024, this is also due to growth investments, according to the company. For the current year, the company has decided not to focus on earnings growth, but on accelerated medium-term customer growth.
In addition to the growth prospects, Freenet shares are also interesting for their generous dividend payments. The increase this year makes the stock even more attractive for dividend investors, and the prospect of stability in the coming year at least provides a solid medium-term outlook.
Source: https://aktienscreener.com/