Investing in freenet (ETR:FNTN) Five Years Ago: A 100% Gain

Five years ago, investing in freenet (ETR:FNTN) might have seemed like a risky bet. However, those who took the plunge have been rewarded with a 100% gain. Let's explore the factors that contributed to freenet's impressive performance and what the future holds for this German telecommunications giant.

Expansion and Diversification

Freenet's success can be attributed to its strategic expansion and diversification. The company has expanded its product offerings to include mobile communications, TV and media, and other services. This diversification has allowed freenet to tap into new revenue streams and attract a broader customer base. For instance, the launch of waipu.tv, an IPTV service, has contributed to the company's growth. In the nine-month period of 2024, waipu.tv reported its strongest third-quarter customer growth since launch, adding 131.6 thousand net new customers (freenet AG, 2024).

Strong Financial Performance

Freenet's financial performance has improved over the past five years, with key KPIs such as revenue, EBITDA, and free cash flow increasing. Revenue grew by 2.9% to EUR 1,816 million in the nine-month period of 2024, compared to EUR 1,765 million in the prior year (freenet AG, 2024). EBITDA increased to EUR 380.0 million in the nine-month period of 2024, up from EUR 376.8 million in the prior year (freenet AG, 2024). Free cash flow remained at the prior year's level of EUR 219.9 million (freenet AG, 2024).

Strategic Acquisitions and Partnerships

Freenet's strategic acquisitions and partnerships have played a significant role in driving its growth and enhancing its value proposition. The company has made several strategic moves to expand its offerings and strengthen its market position. For example, in 2014, freenet entered into a strategic partnership with Deutsche Telekom, Germany's largest telecommunications company. This partnership allowed freenet to leverage Deutsche Telekom's extensive network infrastructure and expand its offerings to include fixed-line services (Source: [Freenet Press Release, 2014](https://www.freenet-group.de/en/press-releases/2014/04/24/freenet-and-deutsche-telekom-enter-into-strategic-partnership.html)).

Looking Ahead

Freenet's impressive performance over the past five years suggests that the company is well-positioned for continued growth. As the company continues to expand its product offerings and strengthen its market position, investors can expect to see more gains in the coming years. However, it is essential to keep in mind that all investments come with risks, and it is crucial to conduct thorough research and stay informed about the company's developments.

In conclusion, investing in freenet (ETR:FNTN) five years ago would have delivered you a 100% gain, thanks to the company's strategic expansion, strong financial performance, and strategic acquisitions and partnerships. As the company continues to grow and adapt to the changing market landscape, investors can expect to see more gains in the future.