freenet AG shares down as UBS cuts on AI risks, reset potential

freenet AG

19/02/2026 13:54

** UBS downgrades German telecoms provider freenet FNTGn.DE to "sell" from "neutral" on concerns over near-term "reset" of subscriber base and longer-term AI threats to its business model

** The broker sees potential for consumers to use agentic AI to select new plans and mobile network operators (MNOs) to better utilise AI for customer retention/acquisition with greater use of digital channels

** UBS also expects average revenue per mobile user in Germany to continue declining in 2026 and freenet's Waipu TV's growth to stall amid competition driven by cable bundling TV with broadband

** "We expect a subscriber clean-up for non-paying customers in Q4 (not factored into consensus) which will reset the base and we remain more cautious on Freenet being able to achieve both subscriber and profitability growth targets going forward," says the broker

** Shares are down about 8%, on track for worst day since May

 (Reporting by Danny Callaghan)

 ((danny.callaghan@thomsonreuters.com))