Freenet’s shares tumbled 5.7% to a nine-month low after disappointing Q2 results, with revenue missing forecasts by 1.5% (€609M) and EBITDA falling short at €129M. The telecom giant faces mounting pressure as mobile revenues declined year-over-year, forcing a downgrade in annual customer revenue projections from "stable" to "moderate decline." Streaming service Waipu TV also stagnated, lagging behind competitors. Despite a brighter spot—free cash flow beating expectations by 9.4% (€83M)—investors remain wary, particularly as new leadership takes charge during the downturn.
Restructuring Amid Turbulence
The company announced a drastic board reduction from six to two members, leaving only the CEO and CFO to steer operations. H1 2025 results showed muted growth: revenue edged up 0.9% (€1.21B), while EBITDA rose marginally to €257.4M. Mobile ARPU dropped to €17.40, reflecting intense market competition. Freenet maintains its 2025 EBITDA target of €520M–€540M, but analysts question its feasibility amid sector headwinds. The stock’s year-to-date decline contrasts sharply with the MDAX’s 20% gain, signaling further challenges ahead.