REG - Hellenic Telecomms - 1st Quarter Results
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RNS Number : 5855D Hellenic Telecomms Organization S A 08 May 2026
OTE GROUP REPORTS 2026 FIRST QUARTER
KEY HIGHLIGHTS
· Solid start to the year: Revenues increased by 4.9%, Adj. EBITDA (AL)
up 2.8%, on track to deliver 2026 ΕBITDA growth of c.3%
· Mobile service revenues maintained strong momentum, up 5.5% in the
quarter; post-paid net additions up 7.6%, a record growth level
· Fixed retail service revenues on positive trajectory, up 1.1%; Solid
FTTH, FWA and TV performance
· Robust FTTH growth: connections reached 625k; another quarter of
record additions exceeding 58k
· FTTH rollout exceeded 2.1mn homes; rising utilization at 39% -UFBB
now commercially available
Key Financial Data
OTE GROUP (€mn) Q1'26 Q1'25 y-o-y
Revenues 859.4 818.9 +4.9%
Adjusted EBITDA (AL) 338.4 329.1 +2.8%
margin % 39.4% 40.2% -0.8pp
EBIT 188.9 188.0 +0.5%
Profit to owners of the parent 138.2 151.8 -9.0%
EPS (€) 0.3492 0.3745 -6.8%
Adj. Profit to owners of the parent 153.6 162.3 -5.4%
Capex 108.5 117.4 -7.6%
Free Cash Flow (AL) 60.4 106.2 - 43.1%
Cash and cash equivalents 551.0 549.6 +0.3%
Net Debt 519.1 561.7 -7.6%
Note: Following TELEKOM ROMANIA MOBILE COMMUNICATIONS (TKRM) disposal, all
figures for 2025 (apart from Balance Sheet of 2025) adjusted to reflect only
continuing operations; TKRM has been treated as discontinued operations in
2025 (until the disposal date).
Message from the Chairman & CEO, Kostas Nebis:
"Our first-quarter performance marks a strong start to 2026, reflecting
sustained momentum and delivery on our strategic priorities, that drive the
acceleration in our financial performance, and the continuous improvement in
the country's digitization. Both revenues and EBITDA increased, driven by
robust mobile and ICT performance, alongside positive trends in fixed
services. Our steadily expanding FTTH reach supports the growing demand for
enhanced connectivity, as the record number of FTTH additions shows. We have
strengthened our offerings by adding new in-home connectivity services to
further enhance differentiation and customer experience. Our mobile business
maintained its strong trajectory, as customers continue to migrate to our
postpaid offerings and higher data bundles. Our ICT business delivered strong
growth, while the launch of Business Cloud services in the quarter supports
B2B growth, enabling the acceleration of AI adoption.
Looking ahead, we are focused on disciplined execution, leveraging our
operating model transformation and the strength of the TELEKOM Group to drive
further growth, accelerate digital transformation and enhance Greece's
position on the international connectivity map. We remain confident in
delivering our 2026 guidance and generating sustainable growth and long-term
value for our shareholders and stakeholders."
OUTLOOK
Despite a challenging global background and a dynamic competitive environment
in Greece, OTE remains well positioned to pursue its transformation and
deliver on its financial targets. OTE's leadership in fiber reach, mobile
network, TV content, ICT capabilities and a diversified portfolio across
non-core services is key to continuing supporting our outlook. Growth in Fixed
is expected to persist, driven by increasing FTTH uptake, continued FWA
momentum, the expansion of fiber footprint, and solid TV performance. OTE
targets around 2.4 million FTTH homes passed by end‑2026 and approximately
3.5 million by 2030. In Mobile, solid growth is expected to continue as OTE is
expanding further its 5G Stand‑Alone coverage, and customers continue to
increase their data use. In ICT, EU-funded projects are expected to gradually
wind down in 2026, with private sector projects progressively increasing their
contribution to this business segment. In Wholesale, OTE anticipates a decline
in the international near‑zero‑margin segment as certain activities are
phased out, while domestic trends seen in 2025 are expected to continue. OTE
will continue to exercise strict cost discipline and drive efficiencies,
particularly in transformation-related areas. AI utilization is rising across
several functions-including IT, Network Management, Call Centers, and Customer
Operations-supporting operational efficiency.
2026 Guidance - Reiterate
· Free Cash Flow (FCF): OTE anticipates generating Free Cash Flow (FCF)
of approximately €750mn, assuming the spectrum auction is held in 2027.
Adjusting for certain positive one‑off tax items, primarily stemming from
the disposal of its Romanian operations, underlying Free Cash Flow is expected
to be in the range of €570-580mn.
· Capital Expenditure (CAPEX): OTE anticipates CAPEX of approximately
€600mn, mainly directed toward the expansion of its Fiber‑to‑the‑Home
network and the deployment of its 5G Stand‑Alone (SA).
· Adj. EBITDA (AL): OTE expects to accelerate its EBITDA growth to
approximately 3%.
FINANCIAL HIGHLIGHTS 1 (#_ftn1)
Financial Data
Financial Data (€mn) Q1'26 Q1'25 y-o-y
Revenues 859.4 818.9 4.9%
Retail Fixed Services 232.9 230.4 +1.1%
Including Data Com. 258.0 253.8 +1.7%
Mobile Service Revenues 257.9 244.5 +5.5%
Wholesale Services 85.5 141.8 -39.7%
Other Revenues 283.1 202.2 +40.0%
Out of which: System Solutions 162.0 91.9 +76.3%
Adjusted EBITDA (AL) 338.4 329.1 +2.8%
margin (%) 39.4% 40.2% -0.8pp
Total revenues amounted to €859.4mn in Q1'26, up 4.9% year on year, driven
by the sharp increase in revenues from System Solutions, robust growth in
mobile and positive trends in fixed retail, more than offsetting the decline
in international wholesale revenues, mainly due to the planned phase-out of
certain activities.
· Retail fixed service revenues increased by 1.1% in Q1'26, reflecting
continued positive momentum. Performance was supported by ongoing FTTH network
expansion, driving higher customer uptake and utilization. The commercial
launch of the UFBB network is expected to address connectivity needs in remote
areas and support deeper FTTH penetration. This will enable OTE to offer
enhanced services where no satisfactory broadband was available, or where
customers had to resort to alternative solutions. TV continued to deliver
solid performance, recording strong year-on-year growth, while adoption of 5G
WiFi-the FWA product launched last year-continued to increase.
· Mobile service revenues increased by 5.5% in Q1'26, maintaining strong
performance. Growth was supported by a continued uplift in postpaid
performance, driven by customer migrations from prepaid and increasing uptake
of higher value propositions, reinforcing revenue growth and customer value.
Furthermore, the company recently introduced enhanced value propositions in
its digital channels for the prepaid segment.
· Wholesale revenues declined by 39.7% in Q1'26, reflecting the planned
phase-out of zero-margin international wholesale revenues related to transit
traffic, and are expected to further decrease throughout 2026 and 2027.
National wholesale revenues remained broadly aligned with recent trends,
impacted by the ongoing fiber rollout of competing operators, while partially
supported by increasing utilization of OTE's FTTH infrastructure by other
operators.
· Other revenues increased by 40% in the quarter, reflecting strong ICT
momentum, with Systems Solutions delivering 76.3% growth. In light of the
anticipated phase-out of the European Recovery and Resilience Facility, public
sector entities are accelerating efforts to complete their digitalization
projects. OTE continues to strengthen its role as a leading systems
integrator and is expanding its client base in the non-public sector. In
addition, the Company launched a comprehensive portfolio of innovative Data
Center services, including AI workload capabilities (GPU-as-a-Service). In
line with its strategy, this enables businesses and public sector
organizations to efficiently develop and scale AI applications within a
secure, EU-compliant environment, while supporting innovation and
strengthening national digital sovereignty.
Total Operating Expenses, excluding depreciation, amortization, impairment and
charges related to voluntary leave schemes and other restructuring costs,
amounted to €509mn in Q1'26, higher by €32.5mn year-on-year, largely in
line with the growth trends in revenues. This is primarily driven by higher
ICT-related expenses, increased FTTH customer connectivity, and higher
marketing costs.
Adjusted EBITDA (AL) growth further accelerated in the quarter, increasing by
2.8% year-on-year to €338.4mn. The corresponding margin reached 39.4%,
compared to 40.2% in Q1'25, primarily reflecting a higher contribution from
lower-margin revenue streams, notably the strong increase in Systems
Solutions. Alongside revenue growth, ongoing cost efficiencies-particularly in
personnel expenses-helped partly offset certain cost increases during the
period.
Operating profit before financial and investing activities (EBIT) reached
€188.9mn in Q1'26, up 0.5% year-on-year, as accelerated EBITDA growth was
largely offset by higher voluntary exit scheme costs-due to earlier
implementation compared to the prior year-as well as increased depreciation.
Adjusted profit to owners of the parent stood at €153.6m in the quarter,
down from €162.3m in Q1'25, reflecting the base effect of a one-off €10.5m
tax refund in Q1'25 related to withholding tax on foreign dividends from 2019.
Capex in Q1'26 amounted to €108.5mn, down 7.6% compared to Q1'25. The drop
mainly reflects lower TV content spending while at the same time the Company
continues to expand its FTTH network - covering now over 2.1 million homes -
and to rollout the 5G Stand‑Alone (SA) network, which supports the 5G Wifi
(FWA) service.
Reported Free Cash Flow (AL) stood at €60.4mn in Q1'26, compared to
€106.2m during the same period last year. The decline was mainly driven by
higher income tax payments in the beginning of 2026 related to prior-year
installments. Underlying Free Cash Flow is expected to normalize over the
coming quarters and the Company remains on track to achieve its full year
targets.
Net Debt stood at €519.1.mn as of March 31, 2026, and the ratio of net debt
to 12-month Adjusted EBITDA (AL) stood at 0.4x. In September 2026 a €500mn
bond at 0.875% will mature. The Company examines the refinancing options for
this maturity.
OPERATIONAL HIGHLIGHTS 2 (#_ftn2)
Key Operational Data - Fixed Business
Fixed Business Q1'26 Q1'25 y-o-y y-o-y Net Adds
Fixed line subscribers 2,577,224 2,602,662 -1.0% (25,438) (10,790)
Broadband subscribers 2,385,262 2,382,334 +0.1% 2,928 (3,325)
625,234 430,406 +45.3% 194,828 58,482
FTTH
100,231 34,516 +190.4% 65,715 17,318
FWA
TV subscribers 792,463 733,217 +8.1% 59,246 15,366
Key Operational Data Mobile Business
Mobile Business Q1'26 Q1'25 y-o-y y-o-y Net Adds
Postpaid 3,085,855 2,868,468 +7.6% 217,387 50,506
Prepaid 3,969,460 4,237,733 -6.3% (268,273) (72,134)
FTTH: OTE delivered another quarter of record customer additions, maintaining
its positive momentum with over 58k net adds, bringing the total FTTH
subscriber base to 625k. FTTH penetration on the total broadband base reached
26%, up from 18% a year earlier. In areas where OTE's FTTH network is
available, 53% of eligible OTE retail customers within its footprint have
already migrated. Robust demand for higher speeds and reliable connectivity,
combined with the ongoing expansion of OTE's footprint, continue to drive
customer upgrades to FTTH services. In addition, the regulatory framework for
"stop-selling" FTTC in buildings connected to FTTH, introduced late last year,
is supporting higher penetration levels. Increasing FTTH adoption enhances
customer experience, reduces churn, and improves cost efficiency, underscoring
the strategic importance of accelerating FTTH subscriber growth in supporting
OTE's steady leading market position. At the same time, the Company continues
to enrich its offering with value-added services such as Fiber to the Room
(FTTR), which extends optical fiber to every room, further strengthening the
customer value proposition, and other in-home connectivity propositions such
as Wifi Mesh repeaters, improving the WiFi experience and supporting its
incremental revenue growth and reinforcing differentiation.
The strong adoption of FTTH services is reflected in the increasing
utilization rate of OTE's infrastructure, which reached 39%, up from 29% a
year earlier. A total of 82% of OTE's retail customers are connected via its
own network, while 48% of competitors' FTTH subscribers rely on OTE's
infrastructure, compared to 44% a year ago. This growth highlights the
significant contribution of OTE's strategic FTTH wholesale partnerships with
leading telecommunications providers. The increasing FTTH wholesale
utilization supports wholesale revenues, against the losses of wholesale lines
in areas where competitors have rolled out their own FTTH.
OTE remains at the forefront of FTTH deployment in Greece, reinforcing its
market leadership by surpassing just over 2.1 million homes and businesses
passed in Q1'26 while the Company is on track to reach approximately 2.4
million homes and businesses by year-end 2026. During the last period, the
UFBB network became commercially available, enabling the provision of FTTH
services with speeds of up to 1Gbps in rural and semi-rural underserved areas.
This progress is aligned with OTE's vision to drive Greece's digital
transformation, as reflected in the country's significant improvement in fixed
broadband performance rankings by Ookla's Speedtest Global Index, supported by
the continued expansion of OTE's fiber infrastructure.
Fixed Broadband - FWA: COSMOTE's 5G WiFi service, leveraging OTE's advanced 5G
and 5G+ network, continues to gain traction. During the quarter, total FWA
uptake further accelerated, with the total subscriber base reaching 100k, up
from 35k in Q1'25 underscoring the successful launch of 5G Wifi service a year
ago. The growing contribution of Fixed Wireless Access supports overall
broadband performance, enabling OTE to secure its customer base and safeguard
its market share.
TV: OTE's TV subscriber base continued to expand, increasing by 8.1%
year-on-year to 792k subscribers as of March 2026, supported by solid net
additions of 15k-double those recorded in the respective quarter last year.
Growth was driven by the enriched sports content portfolio, the implementation
of stricter anti-piracy legislation, and the removal of the 10% special tax on
pay-TV services, effective January 1, 2026.
Mobile: The postpaid segment maintained its strong upward trajectory,
delivering robust net additions of 51k in the quarter. The total postpaid
subscriber base reached 3.1 million, representing a record year-on-year growth
of 7.6%. This performance was primarily driven by continued migrations from
prepaid to postpaid services, supporting the blended ARPU of the mobile
segment. Prepaid customers accounted for 56% of the total mobile base-still
above the European average-highlighting further potential for postpaid growth.
Overall momentum continues to be underpinned by OTE's network leadership,
attractive service offerings, and the Company's ability to bundle mobile with
fixed connectivity, TV services, complemented by a growing portfolio of
digital and value-added services.
OTE continued to drive strong data consumption across its networks. Average
monthly data usage increased to 19.3 GB per user, up 22% year-on-year. In
parallel, 5G device penetration in the active base rose by 11 percentage
points year-on-year to 47%.
OTE continues to enhance its mobile network through targeted investments,
strengthening the resilience and reliability of its infrastructure and
supporting long-term growth, as well as consistently high-quality customer
experience. 5G population coverage exceeds 99%, while 5G+ (standalone)
coverage has exceeded 79%. Network quality and speed receive industry
recognition from Ookla, umlaut and Opensignal, reinforcing OTE's strong market
position, customer satisfaction, and commercial momentum, while supporting its
differentiation in the market.
SIGNIFICANT EVENTS OF THE QUARTER
OTE acquired 100% of TERNA FIBER S.A (renamed to UltrafastOTE 2)
On January 29, 2026, ERGA YPODOMIS EVRYZONIKOTITAS acquired the remaining
49.9% of TERNA FIBER S.A from GRID TELECOM S.A. On November 05, 2025, OTE had
acquired from GEK TERNA S.A. its 100% subsidiary, ERGA YPODOMIS
EVRYZONIKOTITAS, which owned 50.1% of TERNA FIBER S.A. Following the
completion of the abovementioned transactions, OTE owns, through its 100%
subsidiary ERGA YPODOMIS EVRYZONIKOTITAS, 100% of the shares of TERNA FIBER
SA. The transactions received the relevant approvals of the competent State
Contracting Authority.
New Shareholder Remuneration Policy
On February 25, 2026, the Board of Directors of OTE approved the new
Shareholder Remuneration Policy linked to actual FCF performance instead of
the projected cash flows, enhancing transparency.
2026 Shareholder Remuneration
Following the decision by OTE's Board of Directors on February 25, 2026, OTE
intends to distribute 100% of the 2025 Free Cash Flow generation including
funds used in investment in concession arrangements. Total shareholder
remuneration is targeted at €532mn, corresponding to a proposed €355mn
cash dividend and approximately €177mn in share buybacks. The Board of
Directors of OTE will propose to the Company's Annual General Shareholder
Meeting of June 9, 2026, the distribution of a dividend of €0.8777 per
share. The dividend will be paid out to shareholders on July 7, 2026. The
share buyback execution started on March 2, 2026, and is currently in force.
It is noted that own shares owned by the Company at the ex-dividend date are
not entitled to dividend; therefore, the dividend corresponding to such own
shares will increase the dividend payable to the other shareholders.
Share Buyback Program and OTE Shares Award Incentive Plan
During the period from January 1, 2026, to January 9, 2026, when the purchases
under 2025 SBB program were completed, the Company acquired 236,283 own
shares, at an average price of €16.88 per share. On March 2, 2026, the first
year of the new SBB 2026-2028 program commenced. During the period from March
2, 2026, to May 7, 2026, the Company acquired 2,154,370 own shares at an
average price of €17.22 per share.
As of May 7, 2026, the Company held a total 9,951,384 own shares. Of these,
9,799,155 own shares acquired during the period from May 2, 2025 to April 30,
2026 will be proposed for cancellation in the Annual General Meeting of
Shareholders of June 9, 2026.
On January 21, 2026, the Company acquired 11,329 own shares to be granted to
personnel and/or members of the management of the Company and/or an affiliated
company in the context of OTE Shares Award Incentive Plan for the year 2025.
About OTE
OTE Group is the largest telecommunications provider in the Greek market. OTE
is among the largest listed companies, with respect to market capitalization,
in Euronext Athens.
OTE Group offers the full range of telecommunications services: from
fixed-line and mobile telephony, broadband services, to pay-TV and ICT
solutions. In addition to its core activities, the Group is also involved in
electronic payments, delivery services, real estate, insurance distribution
and professional training.
Additional Information is also available on: https://www.cosmote.gr
(https://www.cosmote.gr)
CONFERENCE CALL DETAILS
Date: Friday, May 08, 2026
Time: 13:00pm Athens Time (C.E.S.T. +1)
Dial-in
Details
Greece +30 210 9460 800
Germany +49 (0) 800 588 9310
UK & International +44 (0) 203 059 5872
USA +1 516 447 5632
We recommend that you call any of the above numbers 5 to 10 minutes before the
conference call is scheduled to start.
Live Webcast Details
To participate via webcast you may join by linking at the internet site:
https://87399.themediaframe.eu/links/otegroup260508.html
(https://87399.themediaframe.eu/links/otegroup260508.html)
If you experience difficulty, please call + 30 210 9460803.
Investor Relations Contacts:
Evrikos Sarsentis - Mergers, Acquisitions and Investor Relations Director, OTE
Group
Tel: +30 210 611 1574, Email: esarsentis@ote.gr (mailto:esarsentis@ote.gr)
Sofia Ziavra - Investor Relations Senior Manager OTE Group
Tel: + 30 210 617 7628, Email: sziavra@ote.gr
Elena Boua - Investor Relations Expert
Tel: + 30 210 611 7364, Email: eboua@ote.gr (mailto:eboua@ote.gr)
Forward-looking Disclaimer
Certain statements in this document constitute forward-looking statements.
Such forward-looking statements are subject to risks and uncertainties that
may cause actual results to differ materially. These risks and uncertainties
include, among other factors, changing economic, financial, business or other
market conditions. OTE will not update such statements on a regular basis. As
a result, you are cautioned not to place any reliance on such forward-looking
statements. Nothing in this document should be construed as a profit forecast
and no representation is made that any of these statements or forecasts will
come to pass. Persons receiving this announcement should not place undue
reliance on forward-looking statements and are advised to make their own
independent analysis and determination with respect to the forecast periods,
which reflect the Group's view only as of the date hereof.
EXHIBITS
I. Alternative Performance Measures "APMs"
II. Consolidated Statement of Financial Position as of March 31, 2026 and
December 31, 2025
III. Consolidated Income Statement for the quarter ended March 31, 2026 and
comparative 2025
IV. Consolidated Statement of Cash Flows for the quarter ended March 31,
2026 and comparative 2025
I. ALTERNATIVE PERFORMANCE MEASURES "APMS"
The Group uses Alternative Performance Measures ("APMs") to support decision
making and performance evaluation. APMs and the respective adjusted measures
provide additional insight into the Group's underlying performance and are
calculated using amounts directly reconcilable to the Group's Financial
Statements, while also taking into account the items below, which, due to
their nature, affect comparability. As these costs or payments are of
significant size and of irregular timing, it is a common industry practice to
be excluded for the calculations in order to enhance comparability with
industry peers and facilitate a better understanding of the Group's
performance. The APMs should be read in conjunction with and do not replace
the directly reconcilable IFRS line items.
1. Costs or payments related to Voluntary Leave Schemes: Costs or payments
related to Voluntary Leave Schemes comprise the exit incentives provided to
employees and the contributions to the social security fund to exit/retire
employees before conventional retirement age. These costs are included within
the income statement as well as within the cash flow statement lines "costs
related to voluntary leave schemes" and "payment for voluntary leave schemes",
respectively.
2. Costs or payments related to other restructuring plans: Other
restructuring costs comprise non-ongoing activity-related costs arising from
significant changes in the way the Group conducts business. These costs are
mainly related to the Group's portfolio management restructuring.
3. Spectrum acquisition payments: Spectrum payments comprise the amounts
paid to acquire rights (licenses) through auctions run by the National
Regulator to transmit signals over specific bands of the electromagnetic
spectrum.
DEFINITIONS AND RECONCILIATIONS OF ALTERNATIVE PERFORMANCE MEASURES ("APMS")
The operations of TELEKOM ROMANIA MOBILE COMMUNICATIONS represented a separate
area of operations for the Group and a separate cash generating unit. As a
result, its operations for the year 2025 (as of the date of disposal), have
been treated as discontinued operations (apart from Balance Sheet of 2025).
Net Debt: Net Debt is used to evaluate the Group's capital structure and
leverage. Net Debt is defined as long-term borrowings plus short-term portion
of long-term borrowings plus short-term borrowings plus other financial
liabilities less cash and cash equivalents. Following the adoption of IFRS 16
financial liabilities related to leases are included in the calculation of net
debt.
Net Debt
OTE Group (€ mn) 31/03/2026 31/03/2025
Long-term borrowings 350.0 848.8
Short-term portion of long-term borrowings 499.6 -
Short-term borrowings - -
Lease liabilities (long-term portion) 160.1 185.6
Lease liabilities (short-term portion) 49.2 67.9
Financial liabilities related to digital wallets 11.2 9.0
Cash and cash equivalents (551.0) (549.6)
Net Debt 519.1 561.7
EBIT: Earnings Before Interest and Taxes (EBIT) is derived directly from the
Financial Statements of the Group, line "Operating profit before financial and
investing activities" of the Income Statement. EBIT provides useful
information to analyze the Group's operating performance.
EBITDA - Adjusted EBITDA - Adjusted EBITDA After Lease (AL)
· EBITDA is derived directly from the Financial Statements of the
Group, line "Operating profit before financial and investing activities,
depreciation, amortization and impairment" of the Income Statement. EBITDA is
defined as total revenues plus other operating income less total operating
expenses before depreciation, amortization and impairment. EBITDA provides
useful information to analyze the Group's operating performance.
· Adjusted EBITDA is calculated by excluding the impact of costs
related to voluntary leave schemes and other restructuring costs.
· Adjusted EBITDA After Lease (AL): Following the adoption of IFRS 16
related to leases, it is a common industry practice to use the EBITDA After
Lease (AL) or Adjusted EBITDA After Lease (AL) in order to facilitate
comparability with industry peers and historical comparison as well. Adjusted
EBITDA (AL) is defined as Adjusted EBITDA deducting the depreciation and
interest expense related to leases.
EBITDA, Adjusted EBITDA and Adjusted EBITDA (AL) margin (%) is defined as the
respective EBITDA divided by total revenues.
EBITDA
OTE Group (€ mn) Q1'26 Q1'25
Revenues 859.4 818.9
Other Operating Income 2.8 1.3
Total Operating Expenses (before Depreciation, amortization and impairment) (528.7) (489.9)
EBITDA 333.5 330.3
Costs related to voluntary leave schemes 19.2 12.8
Other restructuring costs 0.5 0.6
Adjusted EBITDA 353.2 343.7
Depreciation of lessee use rights to leased assets (12.9) (12.7)
Interest expense on leases (1.9) (1.9)
Adjusted EBITDA (AL) 338.4 329.1
Margin % 39.4% 40.2%
Capital expenditure (Capex) and Adjusted Capex : Capex is derived directly
from the Financial Statements of the Group, line "Purchase of property, plant
and equipment and intangible assets" of the Cash Flow Statement. The Group
uses Capex to ensure that the cash spending is in line with its overall
strategy for the use of cash. Adjusted Capex is defined as Capex excluding
spectrum payments.
Capital expenditure (Capex) & Adj Capex
OTE Group (€ mn) Q1'26 Q1'25
Purchase of property plant and equipment and intangible assets (108.5) (117.4)
Spectrum Payments - -
Adjusted CAPEX (108.5) (117.4)
Free Cash Flow (FCF)- Free Cash Flow After Lease (AL) - Adjusted FCF After
Lease (AL)
· Free Cash Flow is defined as net cash flows from operating
activities, after payments for purchase of property, plant and equipment and
intangible assets (Capex) and adding the interest received. Free Cash Flow
After Lease (AL) is defined as Free Cash Flow after lease repayments.
· Adjusted FCF After Lease (AL) facilitates comparability of Cash Flow
generation with industry peers and discussions with the investment analyst
community and debt rating agencies. It is calculated by excluding from the
Free Cash Flow After Lease (AL) payments for voluntary leave schemes, other
restructuring costs as well as spectrum payments.
FCF After Lease (AL) and Adjusted FCF After Lease (AL) are intended to measure
the cash generation from the Group's business activities while facilitate the
understanding the Group's cash generating performance as well as availability
for debt repayment, dividend distribution and own reserves.
Free Cash Flow (FCF)
OTE Group (€ mn) Q1'26 Q1'25
Net cash flows from operating activities 180.2 235.9
Minus: Net cash flows from operating activities of discontinued operations 3.2
Purchase of property, plant and equipment and intangible assets (108.5) (117.4)
Interest received 1.6 2.4
Free Cash Flow 73.3 117.7
Lease repayments (12.9) (11.5)
Free Cash Flow After Lease (AL) 60.4 106.2
Payment for voluntary leave schemes 12.8 11.1
Payment for other restructuring costs 1.8 1.1
Spectrum payments - -
Adjusted FCF After Lease (AL) 75.0 118.4
Adjusted Profit to owners of the parent: Adjusted Profit for the period
attributable to owners of the parent is intended to provide useful information
to analyze the Group's net profitability excluding the impact of significant
non-recurring or irregularly recorded items in order to facilitate
comparability with previous ongoing performance. For the respective period of
2026 and the comparable period of 2025, Profit to owners of the parent was
impacted by costs related to voluntary leave schemes and other restructuring
costs.
Adjusted Profit to owners of the parent
OTE Group (€ mn) Q1'26 Q1'25
Profit to owners of the Parent from Continuing Operations 138.2 151.8
Costs related to voluntary leave schemes 15.0 10.0
Other restructuring costs 0.4 0.5
Adjusted Profit to owners of the parent 153.6 162.3
II. ΟΤΕ GROUP CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(€ mn) 31/03/2026 31/12/2025
ASSETS
Non - current assets
Property, plant and equipment 2,305.6 2,304.6
Right-of-use assets 216.9 222.1
Goodwill 376.6 376.6
Telecommunication licenses 187.3 195.4
Other intangible assets 259.1 270.9
Investments 0.1 0.1
Loans to pension funds 51.0 52.1
Deferred tax assets 133.8 132.7
Contract costs 14.7 18.0
Other non-current assets 68.7 71.8
Total non - current assets 3,613.8 3,644.3
Current assets
Inventories 43.8 39.9
Trade receivables 716.2 592.3
Other financial assets 6.7 7.0
Contract assets 37.9 36.1
Other current assets 229.5 200.7
Cash and cash equivalents 551.0 520.9
Total current assets 1,585.1 1,396.9
TOTAL ASSETS 5,198.9 5,041.2
EQUITY AND LIABILITIES
Equity attributable to owners of the Parent
Share capital 1,142.9 1,142.9
Share premium 406.8 406.6
Treasury shares (152.6) (123.9)
Statutory reserve 440.7 440.7
Foreign exchange and other reserves (21.1) (21.3)
Retained earnings 404.1 265.9
Total equity 2,220.8 2,110.9
Non-current liabilities
Long-term borrowings 350.0 350.0
Provision for staff retirement indemnities 96.9 104.4
Provision for youth account 61.0 62.8
Contract liabilities 104.6 71.1
Lease liabilities 160.1 164.7
Deferred tax liabilities 1.0 0.9
Other non - current liabilities 36.2 42.0
Total non - current liabilities 809.8 795.9
Current liabilities
Trade accounts payable 841.7 824.3
Short-term portion of long-term borrowings 499.6 499.4
Income tax payable 34.1 27.4
Contract liabilities 282.1 286.7
Lease liabilities 49.2 48.2
Dividends payable 2.3 3.0
Other current liabilities 459.3 445.4
Total current liabilities 2,168.3 2,134.4
Total liabilities 2,978.1 2,930.3
TOTAL EQUITY AND LIABILITIES 5,198.9 5,041.2
III. ΟΤΕ GROUP CONSOLIDATED STATEMENT OF INCOME STATMENT 3
(#_ftn3)
€ mn) Q1'26 Q1'25 y-o-y
Fixed business:
Retail services revenues 232.9 230.4 +1.1%
Wholesale services revenues 85.5 141.8 -39.7%
Other revenues 198.9 126.7 +57.0%
Total revenues from fixed business 517.3 498.9 +3.7%
Mobile business:
Service revenues 257.9 244.5 +5.5%
Handset revenues 43.5 48.3 -9.9%
Other revenues 0.7 0.7 0.0%
Total revenues from mobile business 302.1 293.5 +2.9%
Miscellaneous other revenues 40.0 26.5 +50.9%
Total revenues 859.4 818.9 +4.9%
Other operating income 2.8 1.3 +115.4%
Operating expenses
Interconnection and roaming costs (47.4) (100.5) -52.8%
Provision for expected credit losses (6.9) (6.8) +1.5%
Personnel costs (95.2) (96.9) -1.8%
Costs related to voluntary leave schemes (19.2) (12.8) +50.0%
Commission costs (20.2) (18.7) +8.0%
Merchandise costs (67.9) (61.1) +11.1%
Maintenance and repairs (22.8) (20.8) +9.6%
Marketing (21.5) (15.6) +37.8%
Other operating expenses (227.6) (156.7) +45.2%
Total operating expenses before depreciation, amortization and impairment (528.7) (489.9) +7.9%
Operating profit before financial and investing activities, depreciation, 333.5 330.3 +1.0%
amortization and impairment
Depreciation, amortization and impairment (144.6) (142.3) +1.6%
Operating profit before financial and investing activities 188.9 188.0 +0.5%
Income and expense from financial and investing activities
Finance income and costs (5.6) (2.1) +166.7%
Foreign exchange differences, net (0.2) 0.1 -
Gains / (losses) from investments and other financial assets - Impairment - 0.3 -
Total profit/ (loss) from financial and investing activities (5.8) (1.7) -
Profit before tax 183.1 186.3 -1.7%
Income tax (44.9) (34.5) +30.1%
Profit for the period from continuing operations 138.2 151.8 -9.0%
Loss from discontinued operations - (2.9) -
Profit for the period 138.2 148.9 -7.2%
Attributable to:
Owners of the parent 138.2 148.9 -7.2%
Non-controlling interests - - -
IV. GROUP CONSOLIDATED STATEMENT OF CASH FLOW 4 (#_ftn4)
(€ mn) Q1'26 Q1'25
Cash flows from operating activities
Profit before tax 183.1 186.3
Adjustments for:
Depreciation, amortization and impairment 144.6 142.3
Costs related to voluntary leave schemes 19.2 12.8
Provisions for defined benefit plans 0.4 0.5
Foreign exchange differences, net 0.2 (0.1)
(Gains) / losses from investments and other financial assets- Impairment - (0.3)
Finance costs, net 5.6 2.1
Working capital adjustments: (97.8) (101.4)
Decrease / (increase) in inventories (3.9) (5.1)
Decrease / (increase) in receivables (134.3) (78.6)
(Decrease) / increase in liabilities (except borrowings) 40.4 (17.7)
Payment for voluntary leave schemes (12.8) (11.1)
Payment of staff retirement indemnities and youth account, excluding (1.3) (1.3)
employees' contributions
Interest and related expenses paid (except leases) (3.3) (3.0)
Interest paid for leases (1.9) (1.9)
Income tax (paid) / received (55.8) 7.8
Net cash flows from operating activities of discontinued operations - 3.2
Net cash flows from operating activities 180.2 235.9
Cash flows from investing activities
Investment in concession arrangements (1.4) -
Purchase of financial assets (0.1) -
Repayment of loans receivable 1.8 2.4
Purchase of property, plant and equipment and intangible assets (108.5) (117.4)
Net flows related to disposal of subsidiaries/ investments (0.5) (0.2)
Interest received 1.6 2.4
Net cash flows from investing activities of discontinued operations - (8.0)
Net cash flows used in investing activities (107.1) (120.8)
Cash flows from financing activities
Acquisition of treasury shares (28.8) (15.8)
Lease repayments (12.9) (11.5)
Financial liabilities related to digital wallets (0.7) (0.1)
Dividends paid to Company's owners (0.7) -
Net cash flows from financing activities of discontinued operations - (4.7)
Net cash flows used in financing activities (43.1) (32.1)
Net increase/ (decrease) in cash and cash equivalents 30.0 83.0
Cash and cash equivalents, at the beginning of the period 520.9 467.0
Net foreign exchange differences 0.1 (0.4)
Cash and cash equivalents, at the end of the period 551.0 549.6
1 (#_ftnref1) Revenues from FMS customers previously reported under Mobile
Service Revenues are now included in Retail Fixed Services. 2025 figures have
been restated accordingly.
2 (#_ftnref2) FMS customers previously reported under mobile postpaid are
now included in fixed, broadband and FWA, where 5G WiFi subscribers are also
reported. 2025 figures have been restated accordingly.
3 (#_ftnref3) Revenues from FMS customers previously reported under Mobile
Service Revenues are now included in Retail Fixed Services. 2025 figures have
been restated accordingly.
4 (#_ftnref4) For the Q1 2026 period, the cash flow line item "Income tax
paid" does not include an amount of €5.1mn (Q1 2025: €0.0mn) relating to
income tax liabilities that were settled through offsetting with trade and
other receivables from the public sector.
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