(Corrects time period in first paragraph.)
March 1 (Bloomberg) -- Freenet AG advanced to the highest level in three-and-a-half years in Frankfurt trading after proposing to pay a dividend for 2011 of 1 euro per share as profit rose.
The stock gained as much as 10 percent to 11.19 euros, its highest price since August, 2008, and traded up 9.7 percent at 11.16 euros at 3.44 p.m.
Group earnings before interest, taxes, depreciation and amortization rose to 337.4 million euros ($450 million) in 2011 from 334.9 million euros a year earlier, Germany’s biggest non-network telecommunications company, led by Chief Executive Christoph Vilanek since 2009, said in a statement.
“We rate the 2011 results strong and almost dare to say that CEO Vilanek has completed his mission to stabilize the business,” Joeri Sels, an analyst at DZ Bank, wrote in a report. “Visibility also seems to have improved as the executives for the first time provided investors with an outlook for 2013.”
Freenet, which buys access to wireless networks from operators like Deutsche Telekom AG and Vodafone Group Plc, aims to “stabilize” revenue in the coming two years at the level seen in 2011 while Ebitda is likely to be about 340 million euros for 2012 and 2013, the company said.
It plans to continue paying out 40 percent to 60 percent of its free cash flow as dividends.
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