euro adhoc: freenet AG / Financial Figures/Balance Sheet / The new freenet AG: EUR 2.055 billion sales, EUR 117.6 million EBT and EUR 257 million consolidated net income

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annual report

26.04.2007

The new freenet AG: EUR 2.055 billion sales,
EUR 117.6 million EBT and EUR 257 million consolidated net income

• 5.1 million mobile users
• 3 million telephony users
• 2 million narrowband users
• 1.5 million paid services users
• 1 million DSL users
freenet AG, Hamburg, 26 April 2006 - Following the completion of the merger
between mobilcom AG and freenet.de AG on 2 March 2007, freenet AG has prepared
the annual financial statements for 2006 in its capacity as the legal successor.

The figures for financial 2006 show that the merger has resulted in a
major player on the market with strong financial backing and strong
results. The market position of freenet AG has been strengthened
although the financial year was characterised by the pending merger
of mobilcom and freenet, so that it was not possible for all the
originally envisaged advantages of the merger to be realised to the
full extent. Competition also became more intense in the course of
2006, and a negative price trend in the Mobile Telephony, Fixed
Network and Internet segments continued. Nevertheless, freenet AG
reported a strong performance in terms of user figures in all growth
segments: The number of mobile users increased in the course of the
year from 4.82 million by approx. 300 thousand to 5.10 million by the
end of 2006. Of this figure, 2.75 million are contract users, and
2.35 million are prepaid users. The number of DSL users also
performed extremely well and - despite extremely strong competition -
also increased by approx. 300 thousand new users from 700 thousand to
one million users. freenet accordingly met its original target for
DSL users for the year 2006. The number of customers in the Paid
Services segment was also expanded further at freenet. In the course
of the year, there was an increase of approx. 160 thousand to 1.5
million at the end of 2006. freenet also has 2 million narrowband
users and 3 million telephony users. freenet AG actively combated the
trend towards lower telephony prices by signing up more customers and
marketing higher-value tariffs, and with sales of EUR 1.329 billion
in the Mobile Telephony segment almost repeated the level of the
previous year (EUR 1.350 billion). Despite continuously falling
prices for telephony, narrowband and DSL and the reduction in the
number of telephone minutes, sales in the Fixed Network/Internet
segment increased from EUR 700.8 million in 2005 by EUR 24.7 million
to EUR 725.5 million in 2006. Accordingly, full-year sales of EUR
2.055 billion in financial 2006 were slightly higher than the
corresponding figure of EUR 2.051 billion for 2005. Gross profit
reflects higher growth costs and fell compared with the previous year
from EUR 490.6 million to EUR 465.8 million. In addition, higher
marketing expenses (+12 percent, from EUR 72.8 million in 2005 to EUR
81.8 million in 2006) resulted in a reduction in the key result
ratios. Operating results (EBITDA) in the Mobile Telephony and Fixed
Network/Internet segments in 2006 were stated as EUR 62.8 million and
EUR 93.2 million respectively. At the Group level, EBITDA of EUR
147.0 million is depressed by EUR 9 million for costs not
attributable to the segments. Earnings before taxes (EBT) increased
slightly from EUR 116.8 million to EUR 117.6 million in 2006, or
declined compared with EBT adjusted by one-off costs of EUR 25.2
million related to the merger. Compared with the previous year,
consolidated result increased strongly by approx. 180 percent to EUR
257.0 million. This growth is attributable to the fact that the tax
losses carried forward can now be utilised throughout the Group.

The cumulative profit of freenet AG for commercial law purposes
amounted to EUR 1.17 billion as of 31 December.2006. This cumulative
profit is attributable mainly to the reversal of hidden reserves of
EUR 1.069 billion within the framework of the merger. Liquid assets
in the Group increased during 2006 from EUR 416.6 million by EUR
117.4 million to EUR 534.0 million. The annual financial statements
for 2006 do not yet contain any proposal for appropriation of
profits. The freenet Managing Board intends to submit a proposal for
the appropriation of profits to the Supervisory Board by the end of
May to enable a resolution to be adopted by the shareholders'
meeting.

Key financials of the freenet Group (yoy comparison):
Accounting method: IAS/IFRS

EUR million 2006 2005
Sales, Group 2,054.8 2,050.8
Sales, Mobile Telephony 1,329.3 1,350.0
Sales, Fixed Network/Internet 725.5 700.8
Gross profit, Group 465.8 490.6
Gross profit, Mobile Telephony 194.4 191.9
Gross profit, Fixed Network/Internet 271.4 298.7
EBITDA, Group 147.0 172.7 / 197.9*
EBITDA, Mobile Telephony 62.8 53.2 / 66.7*
EBITDA, Fixed Network/Internet 93.2 119.4 / 131.2*
EBIT, Group 103.1 108.4 / 133.6*
EBIT, Mobile Telephony 51.4 29.3 / 42.8*
EBIT, Fixed Network/Internet 60.7 79.1 / 90.8*
EBT 117.6 116.8 / 142.0*
Consolidated result 257.0 91.8
Earnings per share 3.50 1.06
Liquid assets 534.0 416.6

* Adjusted by a total of one-off costs of EUR 25.2 million related to
the merger; of this figure, EUR 13.5 million is attributable to the
Mobile Telephony segment and EUR 11.7 million is attributable to the
Fixed Network/Internet segment

end of announcement euro adhoc 26.04.2007 07:52:54
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ots Originaltext: freenet AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
IR-Manager
Andreas Neumann
Tel.: +49 (0)40 51306-778
Patrick Moeller
Tel.: +49 (0)4331 691173
E-Mail: ir@freenet.ag

Branche: Online
ISIN: DE000A0EAMM0
WKN: A0EAMM
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