German multi-service operator Freenet has announced its results for the first half of 2007. Revenues were EUR919.3 million (USD1.26 billion), EBITDA reached EUR136 million and EBIT was EUR97 million. These are Freenet’s inaugural half-year results as an integrated provider since the merger of mobilcom and freenet.de, so year-on-year comparisons are difficult (revenues were down 10%, but EBITDA and net income were up 71% and 138% respectively), but Freenet has revealed that the accounting changes had a EUR63.4 million effect on EBITDA, equating to a 9% fall since H1 2006. Despite the difficulties of year-on-year financial comparisons, quarter on quarter progress at Freenet’s mobile division is good; mobile revenues in Q2 grew 9% to EUR303 million, with gross profit up 33% on Q1. In the fixed line and internet unit revenues and gross profits were both down by 5.5% from Q1 to Q2 due to a fiercely competitive market in which broadband pricing is pared down regularly. Total revenues in Q2 2007 were up quarter-on-quarter by 3% and EBITDA up 8%.
Operationally, Freenet has spent the last six months focusing on customer acquisition with the effect that mobile subscribers have grown 5% year-on-year and broadband customers have grown by 47% since June last year, to 5.24 million and 1.22 million respectively.