freenet (FNTN) Q2 2026 earnings summary

Executive summary

• Revenue grew by 24.7% year-over-year to €1,512.9 million, driven by the integration of Mobilezone and customer growth in both mobile and IPTV segments.

• Adjusted EBITDA declined 5.9% to €242.2 million, impacted by additional expenses from a mobile network operator agreement, but underlying operational performance remains on track for 2026 guidance.

• Customer base surpassed 10 million, with postpaid customers up by 63,000 and waipu.tv subscribers up by 77,100 since year-end 2025.

• AI-first strategy is delivering value through live applications in customer service and sales, improving efficiency.

• Dividend policy ensures strong shareholder returns, with a minimum DPS of €2.0 for FY26–FY28, rising to €2.3 in FY28.

Financial highlights

• Group revenue for H1 2026 reached €1,512.9 million, up 24.7% year-over-year, primarily due to the Mobilezone acquisition.

• Gross profit decreased by 1.4% to €475.7 million, with margin dropping to 31.4% due to lower-margin hardware sales and MNO agreement headwinds.

• Adjusted EBITDA was €242.2 million, down 5.9% year-over-year, with underlying stability excluding MNO effects.

• Adjusted free cash flow was €155.2 million, down 4.2% year-over-year, with cash conversion at 64%.

• Dividend of €2.07 per share paid for 2025, with a yield of ~7%.

Outlook and guidance

• 2026 guidance confirmed: significant revenue growth, adjusted EBITDA €500–530 million, adjusted free cash flow €270–300 million.

• Minimum dividend of €2 per share set for 2026–2028, or 80% of adjusted free cash flow if higher, rising to €2.3 in 2028.

• 2028 ambition targets adjusted EBITDA ≥€620 million and adjusted free cash flow ≥€340 million.

• Expectation of further positive trends in front book pricing and ARPU stabilization by H2 2027.