DGAP-News

freenet AG benefits from stable postpaid ARPU and greater demand for digital lifestyle products in the first quarter - Seite 2

225 thousand new customers in the postpaid customer portfolio, in which all
of the mobile communications contracts with a term of 24 months that are
marketed in the Group are consolidated. The no-frills customer segment,
which comprises all of the mobile communications tariffs with a term of
less than 24 months that are marketed via discount brands belonging to the
Group, likewise demonstrated a positive year-on-year trend with 19 thousand
additional customers.

With its business model of competent, needs-based and network-independent
customer advice, the freenet Group was therefore able to benefit once again
from the ongoing competition among the network operators without any price
adjustments being necessary. At 21.10 euros in the first quarter of 2015,
the average monthly revenue per contract customer (postpaid ARPU) was on a
par with that achieved in the fourth quarter of 2014 (previous year: 21.20
euros). The recently steady process of existing customers switching to
up-to-date, more favourably priced offerings had no appreciable further
impact on postpaid ARPU in the quarter under review.

"In the first quarter, we used the positive market sentiment among
consumers to enhance our leading market position as a competent digital
lifestyle supplier by implementing targeted marketing measures," explains
Christoph Vilanek, CEO of freenet AG, "and this trend makes us optimistic
about the rest of the financial year."

Group EBITDA (earnings before interest, taxes, depreciation and
amortisation) increased slightly to 86.0 million euros (previous year: 85.4
million euros), thereby remaining in line with expectations.

Depreciation and amortisation decreased slightly by 0.5 million euros to
15.5 million euros in the first quarter (previous year: 16.0 million euros)
and, as in the previous year, were accounted for primarily by distribution
rights, intangible assets in relation to purchase price allocations from
corporate acquisitions, and internally generated software.

Taking account of the increase in the income tax burden to 4.8 million
euros (previous year: 2.6 million euros), the Group result decreased in the
quarter under review by 1.2 million euros to 56.2 million euros (previous
year: 57.4 million euros). This corresponds to earnings per share of 0.44
euros (previous year: 0.45 euros).

Free cash flow* increased by 5.1 million euros to 62.2 million euros in the
last quarter (previous year: 57.1 million euros). This increase is