Company Descriptionfreenet AG provides telecommunications, radio and multimedia, mobile communications, mobile Internet, and digital lifestyle services in Germany. It provides a portfolio of services and products primarily in the areas of mobile voice and data services. The Mobile Communications segment offers mobile communications services, such as marketing of mobile communications services, which include voice and data services from the mobile communications network operators; sells and distributes mobile communications devices, as well as offers additional services for mobile data communications and digital lifestyle; and planning, construction, installation, and maintenance services for WiFi networks. The TV and Media segment provides services to end users in the field of DVB-T2 and IPTV; and planning, project management, installation, operation, service, and marketing services for broadcast-related solutions for business clients in the radio and media sectors. The Other/Holding segment offers portal services, such as e-commerce/advertising services; payment services; various digital products and entertainment formats for downloading and displaying, as well as use on mobile devices; communication development solutions, IT solutions, and other services; and voice and data services. The company provides its services under the mobilcom debitel, GRAVIS, MEDIA BROADCAST, klarmobile.de, freenet ENERGY, vitrado.de, FUNK, freenet BASICS, freenet MOBILE, freenet VIDEO, freenet.de, freenet FLEX, freenet TV, waipu.tv, CARMADA, The Cloud, and freenet Business brands. It operates approximately 520 mobilcom-debitel shops and 40 GRAVIS stores. The company sells its products through approximately 400 electronics stores, as well as online platforms. freenet AG was founded in 2005 and is headquartered in Büdelsdorf, Germany.

How the Company Makes Money

freenet Financial Statement Overview

Summary

Freenet shows solid profitability with strong profit margins and robust cash generation. The balance sheet is stable, though the decline in stockholders' equity and revenue could pose future challenges.

Income Statement

Positive

The company's income statement shows solid profitability with a TTM gross profit margin of 35.95% and a net profit margin of 9.77%. The EBIT margin is at 17.53%, indicating efficient operations. However, there is a revenue decline compared to the previous year, which may impact future growth prospects if not addressed.

Balance Sheet

Positive

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.44, suggesting manageable leverage. The equity ratio of 46.76% indicates a healthy capital structure. However, a slight decline in stockholders' equity over the past year could pose challenges if it continues.

Cash Flow

Positive

Cash flow analysis reveals strong cash generation capabilities, with the operating cash flow to net income ratio at 1.55, indicating robust operational efficiency. The free cash flow growth rate is positive, despite minor fluctuations, and the company maintains a healthy free cash flow to net income ratio of 1.38.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
2.45B	2.48B	2.63B	2.56B	2.56B	2.58B
	Gross Profit
880.67M	998.47M	709.47M	911.69M	876.29M	884.18M
	EBIT
429.29M	391.29M	598.74M	159.89M	305.74M	298.29M
	EBITDA
497.28M	521.46M	500.74M	487.79M	404.24M	426.43M
	Net Income Common Stockholders
239.20M	246.80M	154.60M	79.30M	198.17M	190.51M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
148.37M	193.28M	159.80M	193.17M	299.22M	680.25M
	Total Assets
4.84B	3.34B	3.41B	3.63B	3.95B	4.51B
	Total Debt
2.25B	697.10M	778.10M	928.11M	1.13B	1.48B
	Net Debt
2.11B	515.50M	618.30M	750.09M	843.99M	810.62M
	Total Liabilities
3.52B	1.86B	1.98B	2.16B	2.31B	2.68B
	Stockholders Equity
1.31B	1.49B	1.44B	1.47B	1.64B	1.82B
Cash Flow		Free Cash Flow
329.30M	327.00M	342.40M	332.75M	318.99M	307.18M
	Operating Cash Flow
371.80M	370.70M	398.00M	395.69M	367.21M	357.06M
	Investing Cash Flow
-31.30M	-42.30M	-55.30M	-71.89M	-44.13M	1.07B
	Financing Cash Flow
-306.60M	-306.60M	-360.90M	-432.07M	-703.67M	-898.09M

freenet Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0MV2		€3.39B	14.25	18.97%	6.45%	―	―
Sector *	61 Neutral	$14.60B	5.95	-4.32%	3.69%	2.76%	-30.49%
0MPH		€168.20B	13.85	19.60%	2.67%	―	―
0E6Y		€3.24B	18.30	2.93%	0.32%	―	―
0GE4		€4.47B	―	-1.07%	1.67%	―	―

* Communication Services Sector Average

Performance Comparison

GB:0MV2

freenet

28.66

4.62

19.22%

GB:0MPH

Deutsche Telekom

33.98

12.06

55.02%

GB:0E6Y

1&1 Drillisch AG

18.40

1.09

6.30%

GB:0GE4

United Internet

23.88

3.31

16.09%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

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