freenet revenue soars 58%

11 Nov 2009

German multi-service operator (MSO) freenet has announced its results for the nine months ended 30 September 2009, posting a 58% rise in revenue to EUR2.71 billion (USD4.06 billion), attributed to the company’s strategic realignment towards mobile communications and mobile internet, as well as the integration of mobile virtual network operator (MVNO) debitel, which it acquired in June 2008. Meanwhile, earnings before interest, tax, depreciation and amortisation (EBITDA) for the period increased 33.7% year-on-year to EUR220.9 million and gross profit soared 56.5% to EUR566.2 million. The result from continued operations – i.e. excluding the DSL business, which was sold to United Internet (1&1) in May 2009, and the STRATO group, which is up for sale – swung to a loss of EUR1 million for the first three quarters of 2009 from a profit of EUR201.1 million recorded in the same period a year earlier. Cash flow from operating activities totalled EUR257.4 million in the first nine months of 2009, and net financial debt was reduced by EUR163.8 million to EUR1.162 billion.

At 30 September 2009 the company posted a mobile subscriber base of 17.62 million, down from 19.97 million a year earlier. Pre-paid customers made up around 52% of the total. Meanwhile, active narrowband customers (comprising internet and telephony subscribers) totalled approximately 880,000.

Germany, freenet