Introduction
Freenet’s shares experienced a significant decline following the release of their quarterly figures for the first quarter of 2025. The price fell by about 14 percent to €30.34, indicating disappointment among investors, despite the company delivering stable results and confirming its forecasts for the entire year.
Quarterly Figures and Financial Data
- Adjusted EBITDA: Freenet achieved an adjusted EBITDA of €126.1 million in the first quarter of 2025, which is slightly below the previous year’s figure of €127.1 million.
- Revenue: Group revenue increased by 1.7 percent to €604.4 million, marking a slight rise from the previous year’s value of €594.5 million.
- Free Cash Flow: Free cash flow increased slightly from €74.5 million to €75.8 million, attributed to improved net working capital.
- Mobile Segment: In the mobile segment, Freenet achieved an adjusted EBITDA of €103.4 million, which is slightly below the previous year’s figure of €104.1 million. Despite an increase in customer numbers, service revenues fell slightly, attributed to a shift towards cheaper rates in the discount sector.
Market Reaction and Impacts
The disappointment among investors arises not from the absolute figures, but rather from expectations that were not fully met. The price drop has significant implications for market sentiment and is highly relevant for private investors as it influences the perception of the company and its future development.
Forecast and Future Outlook
Freenet has confirmed its forecast for the entire year of 2025, expecting an adjusted EBITDA between €520 and €540 million, exceeding the previous year’s figure of €503.1 million. This forecast could, in the long term, restore investor confidence, provided that the company meets its targets.
Overall, it is evident that while Freenet delivered stable results, it did not completely meet investor expectations, leading to a significant price drop. The future development will largely depend on the company’s ability to meet its forecasts and restore investor satisfaction.