freenet improves guidance for FY 2011

11 Nov 2011

German mobile service provider freenet has reported group revenues of EUR2.375 billion (USD3.2 billion) in the first nine months of 2011, a decrease of 4.3% year-on-year, while third-quarter turnover dropped from EUR843 million to EUR829 million. The company said that recurring group earnings before interest, tax, depreciation and amortisation (EBITDA) – adjusted for one-off items – totalled EUR263.9 million in 9M 2011, down from EUR270.6 million in the year-ago period. Net profit for the first nine months of 2011 reached EUR77.8 million (including EUR77.7 million from continued operations), up from EUR73.0 million in 9M 2010, and rose from EUR28.6 million in the third quarter of 2010 to EUR20.8 million in Q3 2011. Based on these results, freenet now expects recurring group EBITDA of EUR355 million for full year 2011, compared to the previous forecast of EUR350 million. ‘Given these positive key financials, we today raise our forecast, which we have already increased in the summer, from over EUR220 million to over EUR230 million in free cash flow, once again demonstrating our company’s strong profitability,’ commented Joachim Preisig, freenet’s CFO.

freenet’s mobile communications segment accounted for EUR2.324 billion of the firm’s total turnover in the first nine months of 2011, down from EUR2.425 million in the year-ago period, while recurring EBITDA dropped from EUR264 million to EUR260.4 million over the same period. At 30 September 2011 the company reported a mobile customer base of 15.16 million (down from 16.84 million twelve months earlier), of which 7.15 million were pre-paid customers (compared to 7.56 million a year earlier), 5.80 million were contract users (6.37 million) and the remaining 2.22 million were customers of no-frills brands (up from 1.91 million a year earlier). The company now expects to lose less than 420,000 contract customers in FY 2011, down from the previously anticipated loss of 500,000 post-paid subscribers.

Germany, freenet