Telecommunications provider Freenet AG, based in Büdelsdorf, Schleswig-Holstein, presented good preliminary business figures for the past year on Wednesday. The company from the northern region was able to increase both its revenue and earnings. Before I explain the latest figures in detail, I would like to briefly introduce the company to you.

Brief profile of Freenet AG The telecommunications provider Freenet AG emerged from a merger of Mobilcom and freenet.de in 2007. According to its own statements, the company is the largest network-independent mobile phone provider in Germany.

Freenet does not operate its own network, but markets mobile services from operators Telekom, Vodafone, and Telefónica Deutschland. In addition, Freenet sells its own network-independent services under the brands freenet and klarmobil.

The company offers its products, including mobile devices from all major brands, in over 500 freenet shops, about 40 GRAVIS stores, and numerous online platforms.

In addition to its mobile communications business, Freenet has been active in the TV and media sector since 2016 through the acquisition of the Media Broadcast Group and a majority stake in EXARING AG. The company is represented here with the brands waipu.tv and freenet TV. Freenet currently employs 3,660 people at its nine locations in Germany.

Detailed preliminary business figures for 2023 Despite a difficult economic environment characterized by consumer restraint, high energy prices, and higher financing costs, Freenet was able to continue its growth course in the 2023 financial year.

The subscription base of Freenet AG increased by 5% to 9.49 million customers last year. Almost two thirds of the total 450,300 new subscribers were gained in the TV business.

According to preliminary figures, the telecommunications company was able to improve its revenue by 2.8% to around 2.63 billion euros. Earnings before interest, taxes, and depreciation (EBITDA) increased by 4.5% to 500.2 million euros in the past year.

The EBITDA was thus approximately in the middle of the raised forecast range of 495 to 505 million euros and for the first time reached the mark of half a billion euros last year.

Freenet also saw a significant increase in liquidity in the past year. Free cash flow increased by 5.3% to 262.6 million euros, within the revised forecast range of 260 to 270 million euros.

Reserved forecast for 2024 In the current financial year, Freenet plans to invest mainly in increasing the brand awareness of waipu.tv. Therefore, the telecommunications group expects stable values in its forecast for 2024.

Revenue is expected to remain at the previous year’s level and EBITDA is expected to be in a range of 495 to 515 million euros. The expectation for free cash flow is 260 to 280 million euros.

Given the positive business development in the past year, the Freenet management intends to propose an increase in the dividend of 5.4% to 1.77 euros per share at this year’s annual general meeting. With a price-earnings ratio (P/E) of just over 10 and a dividend yield of over 7%, the Freenet share is worth a look for value investors and dividend hunters.

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