freenet AG

freenet reported H1 2026 revenue growth that was helped by the mobilezone acquisition and said top line grew almost 25% because of it. On the profit side, management said gross profit and EBITDA would each have been up 3% on an adjusted basis excluding the unfavorable MNO agreement effect, and free cash flow was EUR 155 million in H1. In Mobile, postpaid service revenue increased 0.7% and front-book pricing rose 1%; in IPTV, gross profit increased from EUR 38 million to EUR 43 million, and targeted advertising revenue rose by nearly 10%. Management confirmed full-year 2026 guidance, said free cash flow was already in good shape versus guidance, and reiterated that the Mobile and IPTV businesses still have a chance to reach their respective corridors.

Robin John Harries sounded upbeat and emphasized execution, scale, and long-term opportunity. He framed the quarter around value over volume, saying freenet is prioritizing pricing discipline, brand investment, and profitable growth rather than chasing subscriber adds at any cost. He also highlighted the AI-first strategy, with live use cases such as the Finn voicebot and AI Buddy for telesales, and said these tools should support growth and efficiency over time.

Ingo Arnold focused on the quality of earnings and the bridge to cash flow. He said the reported revenue increase was flattered by mobilezone and hardware sales, but underlying gross profit and EBITDA would each have been up 3% excluding the unfavorable MNO agreement; free cash flow reached EUR 155 million in H1. He also pointed to a positive working-capital phasing from MNO bonus payments, capex that was higher mainly on Media Broadcast digital radio, and interest expense that was slightly higher due to the mobilezone acquisition debt. On taxes, he pushed back on the idea of a 33% rate and said the tax rate should be around 19% this year.

Analysts pressed on the still-ongoing MNO renewal talks, competitive intensity, EBITDA phasing into the second half, waipu.tv’s path to 3 million subscribers by 2028, and the tax rate. Management said the MNO negotiations are complex and confidential but remain constructive, and that any financial impact this year depends on the final agreement. On competition, Robin said rivals did not revert to price-cutting in Q2 and that freenet is seeing stable prices, while Ingo said EBITDA can improve in H2 through normal commission phasing, lower marketing after heavy first-half spend, seasonally better IPTV advertising, and stronger second-half subscriber contribution. On tax, Ingo said the tax rate should be about 19% this year.