Greece's OTE Hellenic Q2 revenue slightly beats on mobile, postpaid growth
Greece's OTE Hellenic Q2 revenue slightly beats on mobile, postpaid growth
Overview
Greece telecom provider's Q2 revenue was flat yr/yr, slightly beating analyst expectations
Adjusted EBITDA for Q2 rose 3% yr/yr, supported by service revenue growth and cost efficiencies
Free cash flow for Q2 declined, mainly due to timing differences in income tax payments
Outlook
OTE reiterates 2026 guidance for c.3% adjusted EBITDA (AL) growth
Company expects 2026 free cash flow (AL) of c.€750 mln, capex of c.€600 mln
OTE targets 2.4 mln FTTH homes passed by end-2026
Result Drivers
MOBILE AND POSTPAID GROWTH - Co said mobile service revenues rose 2.3% in Q2, driven by record postpaid net additions and higher data usage
FTTH AND FIXED RETAIL - Co said fixed retail service revenues grew, supported by record FTTH customer additions, network expansion, and solid TV and FWA performance
SYSTEM SOLUTIONS - Co said System Solutions revenues rose 52% yr/yr, driven by digital transformation projects in public and private sectors
Company press release: ID:nRSc3455Oa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Slight Beat* | EUR 855.80 mln | EUR 852.94 mln (2 Analysts) |
Q2 Adjusted EBITDA (AL) |
| EUR 343.30 mln |
|
Q2 Free Cash Flow (AL) |
| EUR 149.60 mln |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 4 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the integrated telecommunications services peer group is "buy"
Wall Street's median 12-month price target for Hellenic Telecommunications Organization SA is €21.00, about 5.4% above its July 28 closing price of €19.93
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago
Reuters Recommended Reads
July 29 - Greek telecoms group OTE's core profit boosted by mobile and fibre growth
July 29 - Telefonica ups operating cash flow goal as Brazil, Spain boost core profit
July 28 - Orange raises profit, cash flow targets on Africa growth
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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