UBS ups Freenet as long-term deals with big operators soothe concerns

freenet AG

04/06/2024 12:01

** UBS upgrades mobile retailer and service provider Freenet
 FNTGn.DE  to "buy" from "hold", saying it benefits from
competitive tensions in the German mobile market that have
pushed operators to give it longer term deals
    ** Freenet, which retails its own branded tariffs and
resells tariffs from mobile network operators, has signed 5-10
year deals with all three major operators in Germany, UBS notes
    ** This eases structural concerns for Freenet's Mobile
business, it says, predicting a stable Mobile EBITDA in a longer
term, rather than the structural decline it had expected before
    ** UBS expects Freenet's Waipu TV business to benefit from
regulatory changes and the shift from bulk cable TV contracts in
apartment blocks to individual billing that opens up a market
opportunity of 12 million homes
    ** Shares in Freenet are up 2.8% at 1056 GMT

 (Reporting by Eva Orsolya Papp)
 ((evaorsolya.papp@thomsonreuters.com))