REG - Hellenic Telecomms - 1st Quarter Results
14/05/2025 09:00
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RNS Number : 6233I Hellenic Telecomms Organization S A 14 May 2025
OTE GROUP REPORTS 2025 FIRST QUARTER RESULTS
Highlights
· Solid start to the year: Greece Revenues up 1%, Adj. EBITDA (AL) up
1.8%
oContinued positive momentum in Mobile; Service Revenues up 1.2%, Post-paid
subscribers +6.1%
oMarked improvement in Fixed Retail Service Revenues
oDouble-digit growth in TV Revenues
oSolid FTTH performance; customer base reached 430k; strong additions of 36k
oFTTH homes passed at c.1.8mn, utilization increasing to 29%
OTE GROUP (€ mn) Q1'25 Q1'24 y-o-y
Revenues 878.8 877.6 +0.1%
Adjusted EBITDA (AL) 329.1 326.0 +1.0%
margin % 37.4% 37.1% +0.3pp
Adjusted EBITDA (AL) - Greece 329.1 323.2 +1.8%
margin % 40.2% 39.8% +0.4pp
EBIT 186.2 182.2 +2.2%
Profit to owners of the parent 148.9 134.8 +10.5%
Adj. Profit to owners of the parent 159.4 142.5 +11.9%
EPS (€) 0.3673 0.3242 +13.3%
Capex 125.5 117.5 +6.8%
Free Cash Flow (AL) 96.7 127.1 -23.9%
Adjusted Free Cash Flow (AL) 108.9 130.0 -16.2%
Cash and cash equivalents 549.6 567.8 -3.2%
Net Debt 561.7 521.0 +7.8%
Note: The purpose and calculations of all 'Adjusted' data are detailed in the
Alternative Performance Measures Section (#APM)
Message from the Chairman & CEO, Kostas Nebis:
"I'm pleased to report a solid start to 2025, with first-quarter results
reflecting positive momentum in line with our targets, the success of our
unwavering focus on the country's digitization and on our accelerating growth.
Revenues and EBITDA both increased year-over-year, as our strategy is starting
to unfold, driving positive performances across our mobile, broadband, TV, and
ICT segments. Our mobile business continued to strengthen its market
leadership, while fixed services delivered notable improvements through higher
fiber customer adoption and improved offerings. Our continuing investments in
FTTH and 5G infrastructure remain key to our network superiority, enabling
ultra-fast, reliable connectivity and exceptional user experiences, further
strengthening customer loyalty.
Recently, we launched our new brand identity, with COSMOTE joining forces with
TELEKOM, the leading telecommunications brand globally. COSMOTE TELEKOM will
further solidify our position as part of a worldwide telecommunications group
with significant strength and economies of scale, while further
differentiating us from competition. Looking ahead, we are focused on
leveraging our technological strengths and the scale of the TELEKOM Group to
drive innovation and sustainable value creation. With the rollout of our
strategy, we are taking the next steps towards delivering long-term benefits
for all our stakeholders".
OUTLOOK
OTE remains well-positioned to achieve its targets, supported by its strong
market presence and strategic initiatives, despite challenges, such as the
global economic slowdown and the competitive intensity of the market. In 2025,
OTE will continue to execute its investment strategy, maintaining a clear
focus on delivering best-in-class networks. The Company plans to pass
approximately 2.1 million homes and businesses with FTTH (Fiber-to-the-Home)
by year-end, being by far the leader in the network's reach, and thereby
ensuring it can attract and upgrade its customers, securing its long-term
profitable growth. OTE will further expand its 5G Stand-Alone (SA) coverage,
maintaining its clear mobile network advantage, while being able to offer FWA
services where necessary. At the same time, OTE continues reinforcing its
leadership in Greece's digital infrastructure, enhancing the customer
experience through targeted investments in digital services and touchpoints,
and continuing the transformation of its operations to drive greater
efficiency and foster innovation.
In Greece, given the current market dynamics, OTE expects to continue its
momentum for the rest of the year: In Broadband, the two available FTTH
subsidies (the Gigabit Voucher and Smart Readiness Coupon) are enhancing FTTH
service uptake, while the launch of the FWA solution should further support
Broadband trends. In TV, OTE is expanding its customer base and enhancing its
ARPU, benefiting from the sports content-sharing agreement with NOVA.
Additionally, the anti-piracy legislation approved earlier this year-and
expected to be fully implemented-should further strengthen OTE's market
position. In Mobile, a high prepaid customer base and a more-for-more strategy
provide further growth opportunities. Positive momentum in the postpaid
segment is expected to continue in 2025, while recent initiatives in the
prepaid segment should further support mobile growth. In ICT, where OTE is one
of the major Systems Integrators for businesses and the public sector in
Greece and the EU, it should continue benefiting from the ongoing deployment
of the EU Recovery and Resilience Fund. In Wholesale, OTE anticipates
continuing facing headwinds, while the volume discount agreement in FTTH
wholesale market should facilitate the transition towards fiber optic services
and enhance investment monetization.
In Romania, while performance remains challenging, the disposal effort
continues, with the streams of regulatory approvals and sale negotiations
ongoing.
2025 Guidance - Reiterate:
· Free Cash Flow (FCF): OTE Group anticipates generating approximately
€460mn Free Cash Flow in 2025, incorporating estimated cash flow deficit in
TELEKOM ROMANIA MOBILE (TKRM) for the full year, in case of no disposal.
· Capital Expenditure (CAPEX): The Group projects CAPEX
of €610mn-€620mn in 2025, focusing on the expansion of its Fiber to the
Home (FTTH) infrastructure.
· Adj. EBITDA (AL): OTE expects EBITDA growth in Greece to reach almost
2%, fueled by solid performance across key services, including mobile,
broadband, and TV alongside effective cost management in several areas.
2025 SHAREHOLDER REMUNERATION
OTE intends to distribute approximately 98% of its expected 2025 Free Cash
Flow of approximately €460mn. Total shareholder remuneration is targeted at
approximately €451mn, corresponding to a proposed €298mn cash dividend and
approximately €153mn in share buybacks. In case TKRM disposal concludes
successfully within 2025 and depending on the outcome, the proposed amount for
shareholder remuneration will be adjusted accordingly to reflect the real
impact on OTE Group Free Cash Flow.
The share buyback program is currently in place and the purchase of own shares
commenced on February 28, 2025. As of the date of this release, OTE had
executed approximately €30mn in share buybacks. The proposed dividend per
share stands at €0.7216 per share. The dividend is expected to be paid out
on July 9, 2025. 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 according to the law.
OTE GROUP HIGHLIGHTS
ΟΤΕ Group Revenues in Q1'25 were nearly unchanged at €878.8mn, as growth
recorded in Greece was almost offset by ongoing pressure in Romanian
operations. Revenues from Greek operations were up 0.8%, driven by positive
performances in mobile, TV, broadband, and ICT services, which more than
offset an anticipated drop in wholesale revenues. In Romania, revenues
declined by 8.0% to €60.9m in the quarter in a highly competitive market.
Total Group Operating Expenses, excluding depreciation, amortization,
impairment and charges related to voluntary leave schemes and restructuring
costs, amounted to €531.4mn in Q1'25, remaining nearly unchanged (-0.2%)
year-on-year, in line with top-line trends.
Group Adjusted EBITDA (AL) reached €329.1mn, up 1.0%, reflecting solid
growth of 1.8% in Greek operations, while performance in the Romanian mobile
segment weighed on overall results.
Group Capex in Q1'25 amounted to €125.5mn, up 6.8% from Q1'24, on ongoing
FTTH rollout and higher spending on TV content, compared to the same period
last year. Capex in Greece and Romania stood at €117.4mn and €8.1mn,
respectively.
Reported Free Cash Flow (AL) stood at €96.7mn compared to €127.1m in
Q1'24, as lower Income Tax paid in the quarter, resulting from certain tax
refunds, was offset by Capex spending and higher working capital needs, mainly
due to ongoing ICT projects and different timing of certain liabilities
payments.
The Group's Net Debt stood at €561.7mn as of March 31, 2025, and the ratio
of net debt to 12-month Adjusted EBITDA (AL) stood at 0.4x. The Group does not
face any bond maturity until September 2026 (€500mn 0.875% Notes).
Revenues (€mn) Q1'25 Q1'24 y-o-y
Greece 818.9 812.3 +0.8%
Romania mobile 60.9 66.2 -8.0%
Eliminations (1.0) (0.9) +11.1%
OTE GROUP 878.8 877.6 +0.1%
Adjusted EBITDA (AL) (€mn) Q1'25 Q1'24 y-o-y
Greece 329.1 323.2 +1.8%
margin (%) 40.2% 39.8% +0.4pp
Romania mobile 0.0 2.8 -100.0%
margin (%) 0.0% 4.2% -4.2pp
OTE GROUP 329.1 326.0 +1.0%
margin (%) 37.4% 37.1% +0.3pp
GREECE HIGHLIGHTS
Fixed Segment Operational Data Q1'25 Q1'24 y-o-y Net Adds
Fixed line subscribers 2,571,490 2,610,807 -1.5% (39,317) (9,309)
Broadband subscribers 2,351,162 2,356,097 -0.2% (4,935) (987)
...out of which: Total Fiber Speeds* 1,626,054 1,563,628 +4.0% 62,426 13,660
...out of which: 430,406 286,791 +50.1% 143,615 35,907
FTTH
TV subscribers 733,217 686,539 +6.8% 46,678 7,623
Note: All operational KPI's for 2024 period have been reclassified. Fixed,
Broadband and TV operational data include only RGU.
* Including FTTx and FWA technologies
FTTH: OTE continued to deliver robust growth in its Fiber-To-The-Home (FTTH)
subscriber base, reporting another strong quarter with 36k net customer
additions, as the strategy of converting customers to FTTH as fast as possible
is delivering, supported by the government subsidies, especially in the latter
part of the quarter. The company's total FTTH subscribers reached 430K, now
accounting for 18.3% of its total broadband connections-a 6 percentage point
increase year-over-year, highlighting significant potential for further
expansion. Notably, among OTE customers with access to FTTH infrastructure,
penetration has already reached 46%, underscoring sustained demand for
high-quality connectivity.
Reinforcing its market leadership, OTE remains the top provider of FTTH
infrastructure in Greece. By March 2025, OTE's FTTH network had extended to
nearly 1.8 million homes and businesses, representing a substantial share of
the country's total installed FTTH lines. The company is on track to expand
coverage to 2.1 million homes by the end of 2025 and aims to reach
approximately 3 million by 2027, supporting both current demand and future
growth ambitions.
As of March 2025, the utilization rate of OTE's FTTH infrastructure increased
to 29%, up from 22% a year earlier. Of the 430k total OTE FTTH customers, 84%
are served by OTE's network, while 44% of competitors' FTTH subscribers now
rely on OTE's infrastructure, up from 36% the previous year. This reflects the
positive impact of strategic FTTH wholesale agreements among key market
players concluded last year.
Gigabit Voucher: The first wave of the FTTH subsidy programs is underway,
including 200k Gigabit Vouchers and 60k Smart Readiness coupons available
across the market. These initiatives are supporting fiber penetration and
utilization of OTE's infrastructure. OTE is recording a steadily increasing
number of coupons being redeemed by its customers. As FTTH adoption leads to
higher customer satisfaction, lower churn, and reduced operating costs,
expanding the FTTH subscriber base early on is a key pillar in securing
long-term growth.
Fixed Broadband - FWA: In early 2025, OTE launched Fixed Wireless Access (FWA)
services using 5G+ network slicing-an advanced solution leveraging its 5G WiFi
technology. This strategic move aims to overcome challenges in the fixed
broadband market, particularly in areas without access to fiber optic
infrastructure while it provides a reliable alternative to satellite services.
Currently the FWA service has been adopted by more than 7k customers, while
its benefits are expected to become more evident later this year, especially
during the summer, when seasonal demand for reliable connectivity in more
remote areas peaks.
TV: The company continues to leverage its strategic sports content agreement
with Nova to enhance its offering. As a result, OTE's TV segment continues to
grow, with the customer base reaching 733k by the end of March, marking a
year-on-year increase of 6.8%. TV ARPU has also improved, as subscribers enjoy
the full menu of the combined sport content. In early 2025, anti-piracy
legislation was approved, with implementation by the relevant authorities
expected. This represents a significant step towards facilitating the
transition to legitimate services and further strengthening OTE's market
position.
Mobile Segment Operational Data Q1'25 Q1'24 y-o-y Net Adds
Mobile Subscribers 7,137,373 7,107,284 +0.4% 30,089 -5,180
2,899,640 2,732,413 +6.1% 167,227 42,749
Postpaid
4,237,733 4,374,871 -3.1% (137,138) (47,929)
Prepaid
Note: All operational KPI's for 2024 period have been reclassified. In the
Mobile segment reclassification mainly refers to a certain shift between
Postpaid and Prepaid segment.
OTE continued to make significant progress in its postpaid segment,
capitalizing on its leadership in mobile network quality. The company recorded
strong postpaid additions during the quarter, at 43k, bringing the total base
to 2.9 million-representing a 6.1% year-on-year increase. This growth was
driven by a combination of new customer acquisitions and ongoing migrations
from prepaid to postpaid plans. As of this quarter, prepaid customers account
for 59% of total mobile base, compared to 62% a year ago, highlighting further
opportunities for future upgrades.
In line with its strategy, the company remains committed to expanding its
mobile network. OTE's 5G network now covers more than 99% of the population,
while its 5G+ network (5G Stand-Alone) covers more than 70% of the population.
The 5G+ technology will further improve the customer experience by offering
faster download and upload speeds, ultra-low latency, better indoor coverage,
and increased communication reliability. COSMOTE operates the only
commercially available 5G Stand-Αlone network in Greece - a development that
significantly contributed to Greece being recognized by Ookla's and Omdia's
global evaluation of Europe's digital competitiveness in 5G Standalone, as the
leading country in Europe with the highest 5G SA download speed.
Financial Data (€mn) Q1'25 Q1'24 y-o-y
Revenues 818.9 812.3 0.8%
Retail Fixed Services 228.6 229.1 -0.2%
...Including Data Com. 252.0 251.6 +0.2%
Mobile Service Revenues 246.3 243.3 +1.2%
Wholesale Services 141.8 149.0 -4.8%
Other Revenues 202.2 190.9 +5.9%
…οut of which System Solutions 91.9 78.0 +17.8%
Adjusted EBITDA (AL) 329.1 323.2 +1.8%
margin (%) 40.2% 39.8% +0.4pp
· Total revenues from Greek operations increased by 0.8% to €818.9mn in
Q1'25, fueled by sustained growth in mobile, TV, broadband, and ICT services,
which more than offset a drop in wholesale revenues.
· Retail fixed service revenues were nearly stable in the quarter (-0.2%),
marking a notable improvement compared to previous trends. Sustained strength
in TV services, combined with the positive impact of the Gigabit voucher
program for FTTH connections and the introduction of FWA service this year, is
expected to further support fixed retail revenues in the coming quarters.
· Mobile service revenues maintained positive momentum in Q1'25,
increasing by 1.2%. Ongoing growth particularly in the postpaid segment
primarily reflects customer transitions from prepaid to postpaid plans along
with the uptake of higher-value services. The substantial base of prepaid
customers, provide further growth opportunities. In addition, the Company has
recently updated its prepaid portfolio ensuring a balanced value proposition
that supports mobile growth in the coming period.
· Wholesale revenues declined by 4.8% in the quarter, primarily driven by
lower contributions from low-margin international transit traffic revenues and
the anticipated drop in domestic wholesale stream, largely reflecting
infrastructure built by other operators in the market. The wholesale agreement
with key market players enables OTE to partially mitigate the downside from
this revenue stream over time.
· Other revenues increased by 5.9% in the quarter, primarily driven by
continued positive momentum in ICT. Specifically, revenues from systems
solutions grew significantly by 17.8% during the period. OTE serves as a
leading Systems Integrator for both businesses and the public sector in Greece
and the EU, facilitating digital transformation through the delivery of
cutting-edge technology infrastructure, as well as innovative and tailored IT
and cloud solutions. OTE has been awarded several contracts across both the
public and private sectors, including the provision of managed network
services, ERP systems, fiber optic infrastructure, archive digitalization, and
public services transformation, among others.
· Adjusted EBITDA (AL) in Greece increased by 1.8% to €329.1mn,
continuing the solid trends recorded in previous quarter, while the margin
reached 40.2%, an increase compared to 39.8% in Q1'24. Positive performances
in mobile, TV, and broadband, during the quarter, more than offset the
pressure from legacy services and national wholesale. Similarly, savings in
certain areas, especially personnel costs and energy in the quarter offset
certain increases and support the improvement of the Adjusted EBITDA (AL)
margin by 40 basis points and the achievement of the EBITDA target.
ROMANIA HIGHLIGHTS
Mobile Segment Operational Data Q1'25 Q1'24 y-o-y Net Adds
Mobile Subscribers 3,444,366 3,660,929 -5.9% (216,563) (72,519)
1,973,087 1,931,662 +2.1% 41,425 4,482
Postpaid
1,471,279 1,729,267 -14.9% (257,988) (77,001)
Prepaid
Financial Data (€mn) Q1'25 Q1'24 y-o-y
Revenues 60.9 66.2 -8.0%
Mobile Service Revenues 36.0 38.9 -7.5%
Other Revenues 24.9 27.3 -8.8%
Adjusted EBITDA (AL) 0.0 2.8 -100.0%
margin (%) 0.0% 4.2% -4.2pp
Total revenues from Telekom Romania Mobile (TKRM) amounted to €60.9mn in the
quarter, a decrease of 8.0% year-on-year, primarily due to continued pressure
in the postpaid segment and a decline in handset revenues. Overall, revenues
from Romanian operations remain affected by ongoing challenging market
conditions.
Ongoing positive customer additions on the postpaid segment continues, as the
postpaid base achieved a 2.1% year-on-year increase to a total of 1.97mn
subscribers. Net additions in the quarter stood at 4k.
Adjusted EBITDA (AL) performance of Telekom Romania Mobile was mainly impacted
by ongoing topline pressure along with the effect from the new tax on revenue
introduced in Q2 2024.
SIGNIFICANT EVENTS OF THE QUARTER
2025 Shareholders Remuneration
On February 25, 2025, OTE's Board of Directors approved the Shareholders
Remuneration for 2025 (#SHR) .
Share Buyback Program
On January 10, 2025, the first year of "2024-2026 Buyback Program" as approved
by the Extraordinary General Shareholders' Meeting of November 30, 2023, was
completed. During the period from January 1, 2025, to January 10, 2025, the
Company acquired 116,369 own shares at an average execution price of €14.89
per share.
On February 28, 2025, the second year of "2024-2026 Buyback Program"
commenced. During the first quarter of 2025 the Company acquired 1,011,835 own
shares at an average price of €15.17 per share. As of March 31, 2025, the
Company held a total 8,186,586 own shares including the remaining 7,174,751
shares acquired from June 1, 2024, to January 10, 2025.
EVENTS AFTER THE QUARTER
New commercial identity - COSMOTE TELEKOM
On April 24, 2025, OTE launched its new commercial brand "COSMOTE TELEKOM". By
joining the TELEKOM global brand umbrella, OTE solidifies its position as part
of a worldwide telecommunications group with a strong presence in Europe and
U.S., significant strength, and economies of scale. At the same time, it gets
closer to an international footprint, unlocking additional value for its
customers, people, and all stakeholders, further differentiating OTE from the
competition. The strategic decision to join the forces of the two brands marks
a new era of opportunities.
Approval of the Draft Demerger Plan with the spin-off of OTE S.A.'s passive
mobile infrastructure business
The Board of Directors of OTE S.A. on its 13.05.2025 meeting, decided the
approval of the Draft Demerger Plan with the spin-off of OTE S.A.'s passive
mobile infrastructure business and its contribution to a new société anonyme
to be incorporated with OTE as sole shareholder in accordance with articles 54
par.3, 57 par.2, 58-73 and 83-87 of L.4601/2019), L.4548/2018, and articles 47
- 51 και 56 - 59 of L. 5162/2024 with Accounting Statements dated
31.12.2024. The completion of the spin-off is subject to the required
approvals by OTE Shareholders General Assembly and the competent authorities.
About OTE
OTE Group is the largest telecommunications provider in the Greek market and
offers mobile telecommunications services in Romania. OTE is among the largest
listed companies, with respect to market capitalization, in the Athens Stock
Exchange.
OTE Group offers the full range of telecommunications services: from
fixed-line and mobile telephony, broadband services, to pay television 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
Wednesday, May 14, 2025
13:00pm (EET), 11:00am (GMT), 12:00pm (CET), 06:00am (EST)
Dial-in Details
Greece
+30 210 9460 800
Germany
+49 (0) 69 2222 4493
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
The conference call will be webcast and you may join by linking at:
https://87399.themediaframe.eu/links/otegroup250514.html
(https://87399.themediaframe.eu/links/otegroup250514.html)
If you experience difficulty, please call + 30 210 9460803.
Investor Relations Contacts:
Evrikos Sarsentis - Head of Mergers, Acquisitions and Investor Relations
Tel: +30 210 611 1574, Email: esarsentis@ote.gr (mailto:esarsentis@ote.gr)
Sofia Ziavra - Deputy Director, Investor Relations
Tel: + 30 210 617 7628, Email: sziavra@ote.gr
Elena Boua - Manager Shareholder Services, Investor Relations
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,
2025 and December 31, 2024
III. Consolidated Income Statement for the first quarter ended
March 31, 2025 and comparative 2024
IV. Consolidated Statement of Cash Flows for the first quarter ended
March 31, 2025 and comparative 2024
I. ALTERNATIVE PERFORMANCE MEASURES "APMS"
The Group uses certain Alternative Performance Measures ("APMs") in making
financial, operating and planning decisions as well as in evaluating and
reporting its performance. APMs provide additional insights and understanding
to the Group's underlying performance, financial condition and cash flow. APMs
and the respective adjusted measures are calculated by using the directly
reconcilable amounts of the Consolidated Statement of Financial Position
(Exhibit II), Consolidated Income Statement (Exhibit III) and Consolidated
Statement of Cash Flow (Exhibit IV) and the below items as well, that due to
their nature impacting 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 calculation of the APMs and the adjusted figures in order
to facilitate comparability with industry peers and facilitate the user to
obtain a better understanding of the Group's performance achieved from ongoing
activity. The APMs should be read in conjunction with and do not replace by
any means 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")
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.
OTE Group (€ mn) 31/03/2025 31/03/2024
Long-term borrowings 848.8 847.9
Short-term portion of long-term borrowings - -
Short-term borrowings - -
Lease liabilities (long-term portion) 185.6 173.5
Lease liabilities (short-term portion) 67.9 62.2
Financial liabilities related to digital wallets 9.0 5.2
Cash and cash equivalents (549.6) (567.8)
Net Debt 561.7 521.0
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 amortization and
interest expense related to leases.
EBITDA, Adjusted EBITDA and Adjusted EBITDA (AL) margin (%) is defined as the
respective EBITDA divided by total revenues.
Q1'25 (€ mn) OTE Group Greece Romania
Q1'25 Q1'24 Q1'25 Q1'24 Q1'25 Q1'24
Revenues 878.8 877.6 818.9 812.3 60.9 66.2
Other Operating Income 2.1 3.6 1.3 3.3 0.8 0.4
Total Operating Expenses (before Depreciation, amortization and impairment) (544.8) (542.4) (489.9) (488.6) (55.9) (54.8)
EBITDA 336.1 338.8 330.3 327.0 5.8 11.8
Costs related to voluntary leave schemes 12.8 9.9 12.8 9.9 - -
Other restructuring costs 0.6 - 0.6 - - -
Adjusted EBITDA 349.5 348.7 343.7 336.9 5.8 11.8
Amortization of lessee use rights to leased assets (17.9) (19.9) (12.7) (11.9) (5.2) (8.0)
Interest expense on leases (2.5) (2.8) (1.9) (1.8) (0.6) (1.0)
Adjusted EBITDA (AL) 329.1 326.0 329.1 323.2 0.0 2.8
margin % 37.4% 37.1% 40.2% 39.8% 0.0% 4.2%
Capital expenditure (Capex) and Adjusted Capex
Capital expenditure 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.
OTE Group (€ mn) Q1'25 Q1'24
Purchase of property plant and equipment and intangible assets - Capex (125.5) (117.5)
Spectrum Payments - -
Adjusted CAPEX (125.5) (117.5)
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.
OTE Group (€ mn) Q1'25 Q1'24
Net cash flows from operating activities 235.9 260.2
Purchase of property, plant, equipment and intangible assets (125.5) (117.5)
Interest received 2.5 3.4
Free Cash Flow 112.9 146.1
Lease repayments (16.2) (19.0)
Free Cash Flow After Lease (AL) 96.7 127.1
Payment for voluntary leave schemes 11.1 2.2
Payment for other restructuring costs 1.1 0.7
Spectrum payments - -
Adjusted FCF After Lease (AL) 108.9 130.0
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 2025 and the comparable period of
2024, Profit to owners of the parent was impacted by costs related to
voluntary leave schemes and other restructuring costs.
OTE Group (€ mn) Q1'25 Q1'24
Profit to owners of the Parent 148.9 134.8
Costs related to voluntary leave schemes 10.0 7.7
Other restructuring costs 0.5 -
Adjusted Profit to owners of the parent 159.4 142.5
II. ΟΤΕ GROUP CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(€ mn) 31/03/2025 31/12/2024
ASSETS
Non - current assets
Property, plant and equipment 2,244.2 2,227.6
Right-of-use assets 260.5 262.4
Goodwill 376.6 376.6
Telecommunication licenses 219.8 227.8
Other intangible assets 261.9 279.6
Investments 0.1 0.1
Loans to pension funds 55.4 56.5
Deferred tax assets 190.5 189.3
Contract costs 29.4 33.7
Other non-current assets 73.2 77.4
Total non - current assets 3,711.6 3,731.0
Current assets
Inventories 63.6 51.1
Trade receivables 611.3 536.4
Other financial assets 6.5 6.3
Contract assets 80.3 76.5
Other current assets 133.4 126.2
Restricted cash 0.8 0.7
Cash and cash equivalents 549.6 467.0
Total current assets 1,445.5 1,264.2
TOTAL ASSETS 5,157.1 4,995.2
EQUITY AND LIABILITIES
Equity attributable to owners of the Parent
Share capital 1,167.9 1,167.9
Share premium 416.4 416.4
Treasury shares (121.5) (104.2)
Statutory reserve 440.7 440.7
Foreign exchange and other reserves (152.0) (156.4)
Retained earnings 349.4 200.5
Total equity attributable to owners of the Parent 2,100.9 1,964.9
Total equity 2,100.9 1,964.9
Non-current liabilities
Long-term borrowings 848.8 848.5
Provision for staff retirement indemnities 101.0 109.6
Provision for youth account 67.2 69.0
Contract liabilities 78.4 78.9
Lease liabilities 185.6 189.4
Deferred tax liabilities 0.7 0.6
Other non - current liabilities 75.0 86.9
Total non - current liabilities 1,356.7 1,382.9
Current liabilities
Trade accounts payable 854.3 866.4
Income tax payable 113.9 66.9
Contract liabilities 261.0 258.9
Lease liabilities 67.9 63.4
Dividends payable 2.4 2.4
Other current liabilities 400.0 389.4
Total current liabilities 1,699.5 1,647.4
Total liabilities 3,056.2 3,030.3
TOTAL EQUITY AND LIABILITIES 5,157.1 4,995.2
III. OTE GROUP CONSOLIDATED INCOME STATEMENT
(€ mn) Q1'25 Q1'24 y-o-y
Fixed business:
Retail services revenues 228.6 229.1 -0.2%
Wholesale services revenues 141.8 149.0 -4.8%
Other revenues 125.8 112.2 +12.1%
Total revenues from fixed business 496.2 490.3 +1.2%
Mobile business:
Service revenues 282.2 282.1 0.0%
Handset revenues 67.9 73.4 -7.5%
Other revenues 4.6 4.8 -4.2%
Total revenues from mobile business 354.7 360.3 -1.6%
Miscellaneous other revenues 27.9 27.0 +3.3%
Total revenues 878.8 877.6 +0.1%
Other operating income 2.1 3.6 -41.7%
Operating expenses
Interconnection and roaming costs (104.5) (112.3) -6.9%
Provision for expected credit losses (8.6) (8.5) +1.2%
Personnel costs (100.9) (103.6) -2.6%
Costs related to voluntary leave schemes (12.8) (9.9) +29.3%
Commission costs (22.3) (23.6) -5.5%
Merchandise costs (80.6) (102.2) -21.1%
Maintenance and repairs (23.0) (20.8) +10.6%
Marketing (17.0) (15.2) +11.8%
Other operating expenses (175.1) (146.3) +19.7%
Total operating expenses before depreciation, amortization and impairment (544.8) (542.4) +0.4%
Operating profit before financial and investing activities, depreciation, 336.1 338.8 -0.8%
amortization and impairment
Depreciation, amortization and impairment (149.9) (156.6) -4.3%
Operating profit before financial and investing activities 186.2 182.2 +2.2%
Income and expense from financial and investing activities
Finance income and costs (3.1) (4.3) -27.9%
Foreign exchange differences, net - 0.1 -
Gains / (losses) from investments and other financial assets - Impairment 0.3 0.3 0.0%
Total gain/ (loss) from financial and investing activities (2.8) (3.9) -28.2%
Profit before tax 183.4 178.3 +2.9%
Income tax (34.5) (43.5) -20.7%
Profit for the period 148.9 134.8 +10.5%
IV. GROUP CONSOLIDATED STATEMENT OF CASH FLOW
(€ mn) Q1'25 Q1'24
Cash flows from operating activities
Profit before tax 183.4 178.3
Adjustments for:
Depreciation, amortization and impairment 149.9 156.6
Costs related to voluntary leave schemes 12.8 9.9
Provision for staff retirement indemnities 0.5 0.5
Foreign exchange differences, net - (0.1)
(Gains) / losses from investments and other financial assets- Impairment (0.3) (0.3)
Finance costs, net 3.1 4.3
Working capital adjustments: (103.4) (25.4)
Decrease / (increase) in inventories (12.5) (2.8)
Decrease / (increase) in receivables (78.1) (51.3)
(Decrease) / increase in liabilities (except borrowings) (12.8) 28.7
Payment for voluntary leave schemes (11.1) (2.2)
Payment of staff retirement indemnities and youth account, excluding (1.3) (1.8)
employees' contributions
Interest and related expenses paid (except leases) (3.0) (2.8)
Interest paid for leases (2.5) (2.8)
Income tax (paid)/ received 7.8 (54.0)
Net cash flows from operating activities 235.9 260.2
Cash flows from investing activities
Net outflows related to disposal of subsidiaries/investments (0.2) (8.6)
Repayment of loans receivable 2.4 1.8
Purchase of property, plant and equipment and intangible assets (125.5) (117.5)
Interest received 2.5 3.4
Net cash flows used in investing activities (120.8) (120.9)
Cash flows from financing activities
Acquisition of treasury shares (15.8) (16.0)
Lease repayments (16.2) (19.0)
Financial liabilities related to digital wallets (0.1) (0.1)
Net cash flows used in financing activities (32.1) (35.1)
Net increase/ (decrease) in cash and cash equivalents 83.0 104.2
Cash and cash equivalents, at the beginning of the period 467.0 463.9
Net foreign exchange differences (0.4) (0.3)
Cash and cash equivalents, at the end of the period 549.6 567.8
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