Based on provisional figures, freenet AG is able to take positive stock of the financial year 2014 and generated Group EBITDA (earnings before interest, taxes, depreciation and amortisation) of 365.6 million euros (previous year: 357.4 million euros) and free cash flow* of 266.6 million euros (previous year: 256.2 million euros). This means that freenet AG has exceeded the forecast 365.0 million euros for Group EBITDA and 265.0 million euros for free cash flow for the year 2014 as a whole that it announced in February last year.

The Group result was up by around 4 per cent to 248.2 million euros (previous year: 238.9 million euros), corresponding to earnings per share of 1.93 euros (previous year: 1.87 euros).

Customer ownership (sum total of contract and no-frills customers) has grown for ten successive quarters and now comprises 8.92 million mobile communications customers (previous year: 8.76 million). The number of particularly valuable contract customers increased by more than 150 thousand to 6.01 million. The no-frills customer group, which is reached primarily via online distribution channels, also increased in number by some 12 thousand to 2.91 million.

Based on the provisional figures, freenet AG's Group revenue decreased slightly to 3.041 billion euros in the financial year ended (previous year: 3.193 billion euros). Revenue-reducing effects arose first and foremost from lower revenues in low-margin hardware business. With a revenue contribution of 2.989 billion euros, the mobile communications segment was again dominant in the freenet Group.

"The year's results show that we are on a sustainable, successful course. We regard, and will continue to regard, direct customer contact at the point of sale and on our own online channels as the key success factor for cross- and upselling and therefore for the expansion of the ever more important theme of digital lifestyle", explains Christoph Vilanek, CEO of freenet AG.

Dividend proposal for the financial year 2015
Within the framework of the existing dividend strategy, the Executive Board of freenet AG proposes to the Supervisory Board that a dividend of 1.50 euros per dividend-bearing share be distributed - an increase of 5 cents compared with last year.

"In the financial year 2014, we achieved all of the significant targets that we set ourselves while attaining, or even exceeding, the corresponding key performance indicators", says Joachim Preisig, CFO at freenet AG. "We are therefore happy to propose to the Supervisory Board a dividend payout that builds upon last year's dividend."

Outlook for the financial years 2015 and 2016
The company aims to increase Group EBITDA to 370 million euros in the financial year 2015 and then to around 375 million euros in the financial year 2016. Furthermore, freenet AG is anticipating free cash flow of around 280 million euros in the financial year 2015 and some 285 million euros in the financial year 2016.

The full 2014 Annual Report, including the audited consolidated financial statements, is expected to be available for download at www.freenet-group.de/investor-relations from 26 March 2015.

* Free cash flow is defined as cash flow from current operating activities, less investments in property, plant and equipment and intangible assets, plus the cash inflows from disposals of intangible assets and property, plant and equipment.

distributed by