Freenet, the German telecommunications company, has significantly boosted its annual forecast, triggering a remarkable surge in its stock price. The MDAX-listed firm now anticipates moderate revenue growth, a notable revision from its previous projection of stable performance. This optimistic outlook is backed by impressive third-quarter results, with revenue climbing 2.9% to €1.82 billion in the first nine months. Additionally, Freenet has raised its EBITDA guidance to between €500 and €515 million, while free cash flow is expected to reach €270 to €285 million.
Market Response and Future Prospects
The market's reaction to Freenet's revised projections was overwhelmingly positive, with shares soaring over 6% to touch €29.10, marking a five-year peak. Analysts are particularly intrigued by the company's medium-term objectives and foresee continued growth, especially through its TV streaming platform, Waipu-TV. The impending abolition of the "ancillary cost privilege" is anticipated to further bolster Freenet's position, as it opens up new opportunities in the competitive landscape for acquiring customers in the TV connection market.
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