The Group's principal
activity is providing telecommunication services. The Group operates
the following business segments such as Mobile Telephony, Broadband,
B2B, Hosting and Portal. The Mobile Telephony segment provides mobile
and Fixed Network/Internet segment provides fixed network voice and
services and related services. Broadband provides internet connections
and access along with voice services. Portal service comprise
services, payment services for customers and provision of sale
Hosting division provides registration of top level domains, provision
of web space, implementation of related software solutions. B2B
value added services for business customers, development of
services, IT services and other services for business customers.
provides voice services.
AG exceeds targets for fiscal year 2016
Group revenue grow by 7.8 percent to 3.362 billion euros
Corporate EBITDA (1) increases by 18.5 percent to 438.8 million euros
Free cash flow (2) rises by 20.0 percent to 341.5 million euros
Customer Ownership growing by approx. 232,000 to 9.53 million with
Proposed dividend of 1.60 euros for fiscal year 2016
Based on the preliminary figures, freenet AG reached respectively
exceeded all targets indicated for fiscal year 2016.
According to the preliminary results, in 2016 the company chalked up
Group revenue of 3.362 billion euros, an increase of 7.8 percent over
the previous year (previous year: 3.118 billion euros). The increase is
essentially the result of the contribution made to sales during the
past fiscal year in the newly created TV and Media segment in the
amount of 218.9 million euros. Besides, rising sales of hardware and
high-value digital lifestyle products made a positive contribution to
the growth in total sales. The core business mobile communications
contributed a total of 3.126 billion euros to corporate revenues, an
increase of 2.1 percent over the previous year (3.061 billion euros).
The Group EBITDA rose a significant 18.5 percent to total of 438.8
million euros (previous year: 370.2 million euros) and the free cash
flow was 341.5 million euros (previous year: 284.5 million euros).
The Customer Ownership (the number of contract and no-frills customers)
grew in the course of the year by approx. 232,000 to 9.53 million
participants (previous year: 9.30 million customers). With a stable
average sale of 21.40 euros (previous year: 21.40 euros) per contract
customer (postpaid ARPU), the strategically important postpaid customer
base in particular rose by approx. 203,000 participants to currently
6.51 million (previous year: 6.31 million customers). In the no-frills
business area the number of participants increased by approx. 29,000 to
3.02 million in comparison with the previous year (previous year: 2.99
Joachim Preisig, Chief Financial Officer of freenet AG, is very pleased
with the past fiscal year: "We reached or even exceeded all the targets
that we set ourselves at the beginning of the year for our key figures."
As already announced in March 2016, the Management will suggest to the
Supervisory Board a dividend in the amount of 1.60 euros per
dividend-bearing no par-value share for fiscal year 2016. This
corresponds to a pay-out ratio of approximately 60 percent of the free
cash flow generated in fiscal year 2016.
The final numbers and the business report 2016 will be published on 23
1) Corporate results before interest, income taxes, write-offs and
depreciations, including the portion of the results of the enterprises
included under the equity method, excluding write-offs and deferred
taxes from the follow-up valuation concerning the shadow purchase price
allocation (component of the result of the enterprises included under
the equity method).
2) Free cash-flow is defined as the cash-flow from ongoing business
activities less investments in tangible and intangible assets, plus the
proceeds received from the disposal of tangible and intangible assets.
This report contains future-oriented information which is based on
current assumptions and projections made by the Management of freenet.
Known and unknown risks, uncertainties and other factors may mean that
the actual development, in particular the results, the financial
situation and the business transacted by our company differ from these
future-oriented statements made in this report. The company does not
assume any obligation to implement these future-oriented statements or
to adjust them to future events or developments. All information is
based on preliminary calculations before the final consolidation and
conclusion of the audit. Deviations from the final business numbers to
be presented on 23 March 2017 might therefore occur.