Shares of Freenet (ETR:FNTGn) AG (XETRA:FNTN) climbed 3% as the market responded positively to the company’s fourth quarter results, which included strong key performance indicator (KPI) trends.
The increase in stock value came despite earnings before interest, taxes, depreciation, and amortization (EBITDA) falling below market expectations, an outcome attributed to challenging comparables and some restructuring costs within the company.
The German telecommunications provider reported solid growth in both Waipu TV and contract mobile subscribers, underscoring the company’s operational progress.
Although the EBITDA miss might have been a concern, the company’s guidance for 2025 aligns broadly with expectations, suggesting a stable outlook. Freenet is known for its conservative guidance, which may indicate that actual future results could be more favorable.
While Barclays analysts said they expect a negative reaction on the EBITDA miss, they also noted "solid growth prospects in 2025," which will likely make the investment case to remain "attractive."
