- New TV customers doing business at Freenet
Freenet, a mobile and TV provider, benefited from a surge in new customers from TV users in the first half of the year. Revenue increased by 3.3% compared to the same period last year, reaching nearly €2 billion, as announced by the company, which is listed on the MDax index.
Freenet has been helped by the abolition of the so-called ancillary cost privilege: since July 1, landlords are no longer allowed to charge TV costs as a lump sum in the ancillary costs, giving tenants the freedom to choose their TV provider. For months, Freenet and competitors like Deutsche Telekom have been vying for viewers, and even Vodafone is trying to retain its long-standing customers.
Consequently, Freenet spent more to increase the brand awareness of its product, waipu.tv, which had a negative impact on its earnings before interest, taxes, depreciation, and amortization (EBITDA) for the first six months of the year, causing it to drop by 1.2% to €252.2 million. However, the net income from continuing operations increased from €132.8 million in the previous year to nearly €160 million. The board maintained its annual forecast.
Despite the increased marketing expenses for brand awareness, Freenet managed to boost its net income from continuing operations, rising from €132.8 million to almost €160 million. Regardless of the dip in EBITDA due to marketing costs, Freenet's shares continue to be traded on the MDAX index.
