Freenet slumps on Q1 results showing strain in TV and Media divisions

freenet AG

22/05/2025 08:29

** German telecommunications provider Freenet FNTGn.DE sees its stock fall 10% after weaker-than-expected Q1 results, notably in its TV and Media division

** The company reported a 0.8% decline in Q1 EBITDA year-on-year, with subscriber count below expectations

** Freenet's subscriber count for its waipu.tv service falls short of projections, reaching 2 million compared to the anticipated 2.03 million

** An analyst for Warburg Research says that "the end of the marketing of waipu.tv by Telefonica starting at the end of Q3 24" is partly the reason for lower top-line growth in the TV and Media segment

** UBS analysts Polo Tang and Dhruva Kusa Shah note that "O2 now offers its own product and has stopped reselling Waipu TV," estimating a potential headwind of 50-70k subscribers per quarter

** The Freenet share price is on track for its worst day since 2022-05-06, when it closed 17.4% lower

 (Reporting by Maria Rugamer)

 ((Maria.Rugamer@thomsonreuters.com))