DGAP-News

freenet AG increases revenue in second quarter because of growing number of contract customers and higher digital lifestyle demand - Seite 2

relations in the acquisition of new customers and the management of
existing ones. This orientation is reflected clearly in the development of
ARPU in the most recent quarters: in the second quarter of 2015, average
monthly revenue per contract customer (postpaid ARPU) is 0.3 euros higher
than in the previous quarter at 21.4 euros (previous year: 21.5 euros).

At 186.4 million euros, gross profit is slightly lower than in the second
quarter of 2014 (190.5 million euros). The gross profit margin amounts to
24.8 per cent. This downward trend is attributable largely to higher
activation figures respectively the resultant increase in subscriber
acquisition costs.

Group EBITDA (earnings before interest, taxes, depreciation and
amortisation) nevertheless increased slightly by 1.5 million euros to 89.1
million euros (previous year: 87.6 million euros) and was therefore in line
with expectations.

Depreciation and amortisation increased by 2.3 million euros to 18.8
million euros in the second quarter (previous year: 16.4 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 taxes on income to 5.7 million euros
(previous year: 3.4 million euros), the Group result decreased in the
quarter under review by 2.2 million euros to 54.9 million euros (previous
year: 57.1 million euros). This corresponds to earnings per share of 0.42
euros (previous year: 0.44 euros).

The free cash flow* remained around its previous year's level (74.2 million
euros) with 74.1 million euros. This development results on the one hand
from the slight increase in cash flow from operating activities to 80.7
million euros (previous year: 78.8 million euros), which can be attributed
mainly to improved working capital management. On the other hand, cash flow
from investing activities, which primarily comprise investments in
internally generated software as well as office equipment, changed from
-4.3 million euros to -6.5 million euros compared to the previous year.

Finally, cash flow from financing activities in the quarter under review
amounted to -123.1 million euros (previous year: -215.9 million euros),
influenced predominantly by the inflow of 99.4 million euros from the
taking up of a promissory note loan. This sum was exceeded by the higher
dividend payout in the current financial year which amounted to 192.0
million euros (previous year: 185.6 million euros).