(FNTN) freenet - Ratings and Ratios

Freenet AG is a German telecommunications and media company operating at the intersection of mobile communications, digital lifestyle, and broadcasting. Listed on the XETRA exchange under the ticker FNTN, the company has a market capitalization of 3.4 billion euros, with a P/E ratio of 12.38 and a forward P/E of 11.86, indicating moderate valuation relative to its earnings. Freenet AG divides its operations into three core segments: Mobile Communications, TV and Media, and Other/Holding.

The Mobile Communications segment is the companys largest and most profitable division, focusing on mobile voice and data services. It acts as a mobile virtual network operator (MVNO), reselling network capacity from major German telecom operators while offering its own branded tariffs under names like freenet MOBILE and klarmobil.de. Additionally, this segment includes the sale of mobile devices, WiFi network services, and digital lifestyle products. The company also operates freenet Internet, an app-based mobile internet product, which underscores its push into software-driven connectivity solutions.

The TV and Media segment specializes in broadcast-related services, targeting both business clients and end consumers. For businesses, it provides project planning, construction, and operation of broadcasting infrastructure, while consumers are offered DVB-T2 (digital terrestrial television) and IPTV services through brands like waipu.tv and freenet TV. This segment highlights Freenet AGs diversification into traditional and digital media distribution, positioning it as a hybrid player in Germanys converging telecom and media landscape.

The Other/Holding segment is a catch-all for various digital services, including payment solutions, e-commerce, advertising, and narrowband voice services. This division also houses the companys IT and communication development solutions, as well as its energy and business services. Brands like freenet BUSINESS and CARMADA reflect its B2B focus in these areas. The segments diversity underscores Freenet AGs strategy to monetize its infrastructure and customer base through a wide range of digital offerings.

Financially, Freenet AG trades at a P/S ratio of 1.26, reflecting a reasonable valuation for its revenue streams. Its P/B ratio of 2.37 suggests that investors are paying a premium for its assets, likely due to its established position in the German telecom and media sectors. The companys headquarters in Büdelsdorf, Germany, and its extensive distribution network, including electronics stores and online channels, position it as a significant player in Europes telecom space.