freenet post-paid subscriber loss less than expected

2 Mar 2012

German mobile service provider freenet has announced its preliminary financial results for the year ended 31 December 2011, posting group revenues of EUR3.217 billion (USD4.29 billion), compared to EUR3.339 billion in 2010. The company said that group earnings before interest, tax, depreciation and amortisation (EBITDA) totalled EUR337.4 million in full-year 2011, up slightly from EUR334.9 million in the year-ago period. Net profit rose 28% from EUR112.5 million in 2010 to EUR114 million twelve months later. freenet’s mobile customer base totalled 15.19 million at the end of 2011 (down from 15.65 million twelve months earlier), of which 7.07 million were pre-paid customers (compared to 7.58 million at end-2010), 5.75 million were contract users (down from 6.11 million) and the remaining 2.37 million were customers of no-frills brands (up from 1.97 million). The company had originally expected to lose around 500,000 post-paid subscribers during 2011, but thanks to its continued qualitative alignment, freenet’s contract customer base declined by a less-than-anticipated 366,000 that year.

’With a very successful portfolio of tariffs and great offers we were able to significantly develop our business in 2011, more than we originally expected’, commented freenet’s CEO Christopher Vilanek, adding: ‘We were successful across all lines of sales and distribution, and elements such as the exclusive cooperation with GRAVIS in the Apple device sector make us feel optimistic about the future. We have created the basis for a successful year 2012.’ The company said it expects group EBITDA of EUR340 million and free cash flow of EUR240 million in 2012 and 2013.

Germany, freenet