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Freenet Q1 EBITDA Down; Proposes Suspension Of Dividend

Freenet AG (FRAGF.PK) reported that its first-quarter EBITDA was 104.2 million euros, 3.4 percent lower than in the prior-year quarter, primarily due to the delayed effects of the regulation on international calls/roaming.

By contrast, EBITDA excluding regulatory effects and MOTION TM rose slightly by 1.9 million euros to 109.2 million euros from the previous year.

Revenue for the first-quarter rose 4.3 percent to 648.8 million euros from the previous year.

The company said its executive board and supervisory board propose to the Annual General Meeting a one-time suspension of the dividend in order to maintain financial stability and flexibility.

Number of subscribers grew by 3.2 percent to 8.430 million customers.

Based on the current assessment of operating trends and the associated evaluation of sales risks, freenet sees no need to adjust its financial and non-financial key performance indicator forecasts and, confirmed the prior guidance, the company said.

However, at present it is impossible to asses the duration and intensity of the crisis and any restrictions resulting from it. Even if the immediate general conditions for the freenet Group's business activities do not change completely, macroeconomic and social changes or upheavals in the course of the year could lead to a correction of the current assessment. The guidance given is therefore subject to greater uncertainty than at the beginning of the year, the company said.

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