freenet AG

In H1 2026, freenet expanded its subscription base by 140,000 to more than 10 million subscribers. Q2 added 34,000 Mobile subscribers and 35,000 IPTV subscribers, while postpaid service revenue rose 0.7% and front-book pricing increased 1% year over year. Management said top line grew almost 25% due to the mobilezone acquisition, and that adjusted EBITDA in the first half for waipu/IPTV increased by almost 40%. Ingo Arnold said free cash flow was EUR 155 million in H1, and that the group would otherwise have shown a 3% increase in gross profit and EBITDA excluding the unfavorable MNO agreement effect. For full-year 2026, management confirmed guidance and said they still see good chances to reach the EBITDA, free cash flow, and subscriber corridors; they also reiterated a full-year CapEx expectation of EUR 45 million and said the tax rate should be around 19% this year.

Robin John Harries struck an upbeat tone, saying the first half was “moving in the right direction” and highlighting scale, execution, and growth opportunities. He framed the strategy around “value over volume,” price discipline, stronger branding, AI-driven efficiency, and continued investment in bundles and premium positioning. He also said the mobile business is being reshaped by mobilezone integration, AI tools, and brand investment, while waipu.tv has a large runway given Germany’s IPTV penetration of 18%.

Ingo Arnold emphasized that reported declines were masked by one-off and timing effects, and argued the underlying business remains healthy. He said revenue was helped by mobilezone and hardware sales, but gross profit and EBITDA would each have been up 3% excluding the unfavorable MNO agreement; he also highlighted EUR 155 million of free cash flow in H1, a EUR 45 million full-year CapEx expectation, and slightly higher interest from the mobilezone acquisition. On tax, he pushed back on the idea of a 33% rate and said the tax rate should be around 19% this year.

Analysts focused on the prolonged MNO renegotiation, the competitive backdrop in German mobile, the pace of EBITDA improvement needed in H2, waipu.tv’s path to 3 million subscribers by 2028, and the apparent tax-rate mismatch. Management said MNO talks are complex but constructive, that no terms or timing can be shared yet, and that any 2026 impact depends on the final agreement. On competition, Robin Harries said rivals raised prices and did not reverse course despite pressure on net adds, while Arnold said H2 EBITDA can improve through possible MNO commission timing, lower marketing spend, and stronger IPTV advertising and subscription seasonality.