freenet AG

For H1 2026, freenet reported revenue growth that management said was driven by the mobilezone acquisition and hardware sales, with top line growing almost 25% due to mobilezone. In Mobile, postpaid service revenue increased 0.7% and gross adds were up 11% year over year. In IPTV, gross profit increased from EUR 38 million to EUR 43 million, targeted advertising revenue rose nearly 10%, and free cash flow was EUR 155 million in H1. Management said gross profit and EBITDA would be up 3% on an underlying basis after correcting for the unfavorable MNO agreement, and confirmed full-year 2026 guidance. No exact EPS figure was stated.

Robin John Harries sounded upbeat and confident, saying the first half was moving "in the right direction" and highlighting the milestone of more than 10 million subscribers. He framed the strategy around profitable growth, brand investment, and AI deployment across the customer journey, from voicebots to telesales and store tools. He repeatedly emphasized "value is more important than volume" and said the company sees substantial growth opportunities ahead.

Ingo Arnold focused on underlying performance versus reported optics, saying revenue growth was strong but partly distorted by the mobilezone acquisition and hardware sales. He said gross profit and EBITDA would have been up 3% without the unfavorable MNO agreement, while free cash flow was EUR 155 million in H1 and capex for the full year was still expected at EUR 45 million. He also pointed to positive working capital phasing, slightly higher interest from the mobilezone debt, and said the tax rate for 2026 should be around 19%.

Analysts pressed on the ongoing MNO renegotiation, with management saying the talks are complex, regular, and still constructive, but too early to say whether a new deal would affect 2026 guidance or mainly 2027. They also asked about competitive intensity; Robin said rivals had been price-disciplined in Q2, with no broad return to discounting. On EBITDA phasing, Arnold said the second half can benefit from potential commission improvements, lower marketing spend, and stronger IPTV advertising and subscriber seasonality in the second half.