REG - Hellenic Telecomms - Q2 2025 Financial Results
Today 09:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250806:nRSF2076Ua&default-theme=true
RNS Number : 2076U Hellenic Telecomms Organization S A 06 August 2025
OTE GROUP REPORTS 2025 SECOND QUARTER RESULTS
Highlights
· Telekom Romania Mobile disposal approved by Romanian Competition
Authority & expected to close within Q3 of 2025
· Improving momentum in Greece: Revenues up 1.1%, Adj. EBITDA (AL) up
2%
· Accelerated Mobile performance; Service Revenues up 3.2%, Post-paid
subscribers +5.8%
· Fixed Retail Service Revenues returned to growth; double digit growth
in TV and solid FTTH
· FTTH customer base expanded to 470k; record additions of 40k
· FTTH rollout at c.1.9mn homes - utilization increasing to 31%
OTE GROUP (€ mn) Q2'25 Q2'24 y-o-y 6M'25 6M'24 y-o-y
Revenues 913.3 910.7 +0.3% 1,792.1 1,788.3 +0.2%
Adjusted EBITDA (AL) 328.6 326.7 +0.6% 657.7 652.7 +0.8%
margin % 36.0% 35.9% +0.1pp 36.7% 36.5% +0.2pp
Adjusted EBITDA (AL) - Greece 333.2 326.8 +2.0% 662.3 650.0 +1.9%
margin % 39.0% 38.6% +0.4pp 39.6% 39.2% +0.4pp
EBIT 145.8 171.1 -14.8% 332.0 353.3 -6.0%
Profit to owners of the parent 81.0 125.9 -35.7% 229.9 260.7 -11.8%
Adj. Profit to owners of the parent 129.4 140.5 -7.9% 288.8 283.0 +2.0%
EPS (€) 0.2008 0.3047 -34.1% 0.5686 0.6289 -9.6%
Capex 175.7 156.1 +12.6% 301.2 273.6 +10.1%
Free Cash Flow (AL) 155.1 121.2 +28.0% 251.8 248.3 +1.4%
Adjusted Free Cash Flow (AL) 170.0 145.9 +16.5% 278.9 275.9 +1.1%
Cash and cash equivalents 658.1 686.0 -4.1% 658.1 686.0 -4.1%
Net Debt 449.1 457.0 -1.7% 449.1 457.0 -1.7%
Note: The purpose and calculations of all 'Adjusted' data are detailed in the
Alternative Performance Measures Sectio (#APM) n (#APM)
Message from the Chairman & CEO, Kostas Nebis:
"We delivered another quarter of solid performance and disciplined strategic
execution, building on the strong foundations we have established. In Greece,
our momentum remained robust, and we delivered healthy financial results. Our
mobile segment accelerated significantly this quarter, delivering strong
growth and further solidifying our leadership position in the market. Notably,
our fixed retail business returned to growth, supported by the strength of our
TV services and sustained demand for FTTH. Fiber rollout is on track, and we
are encouraged by the growing subscriber base and increasing penetration
levels.
We received the approval by Romanian authorities for the disposal of Telekom
Romania Mobile, and we anticipate finalizing the transaction shortly. This is
a significant step that aligns with OTE's strategic focus on optimizing its
portfolio and unlocking further value for our shareholders boosting our annual
free cashflow generation. Looking ahead, we remain committed to driving
profitable growth, and creating long-term value for all stakeholders. With a
proven track record of service excellence, a comprehensive portfolio of
top-tier offerings, and the strength of the TELEKOM Group behind us, we are
well-positioned to seize the opportunities that lie ahead."
OUTLOOK
Against the backdrop of global uncertainty and rising competition, OTE will
continue to build on its strong competitive position to maintain market
leadership and deliver on its strategic plan. The Company is well-positioned
to achieve its targets, supported by ongoing investments in best-in-class
networks, a proven track record, and a comprehensive service portfolio across
fixed, mobile, broadband, TV, and bundled offerings. OTE remains focused on
expanding next-generation networks and digital capabilities that benefit
customers and the society. By the end of 2025, it plans to have passed
approximately 2.1 million homes with FTTH - by far the leader in network reach
- and further expand its 5G Stand-Alone (SA) coverage, maintaining its clear
advantage in mobile networks. With a commitment to service excellence, Gigabit
leadership, and AI-driven transformation, OTE continues to create value for
customers and the wider economy.
In Greece, given the current market dynamics, OTE expects to maintain its
positive momentum for the remainder of the year. Broadband is supported by
FTTH subsidies uptake and the launch of a new FWA solution. TV growth
continues, driven by the content-sharing agreement with NOVA and reinforced by
new anti-piracy legislation. In Mobile, a strong customer base,
"more-for-more" strategy, and initiatives in prepaid support ongoing growth,
while postpaid momentum remains solid. The ICT segment continues to benefit
from increasing digitization of the country, while Wholesale remains
challenging, though the FTTH wholesale agreements facilitate the transition to
fiber and enhance investment monetization.
In Romania, the Competition Authority has approved the proposed transaction
with Digi and Vodafone Romania, paving the way for the imminent completion of
the disposal. The completion of the Transaction remains subject to the
finalization of the relevant documentation among the parties, as well as the
approval on certain matters by ANCOM (the National Authority for Management
& Regulation of Communications in Romania) and is expected to take place
within the third quarter of 2025.
2025 Guidance - Reiterate:
2025 guidance remains unchanged pending completion of the Telekom Romania
Mobile disposal:
· Free Cash Flow (FCF): OTE Group anticipates generating FCF of
approximately €460mn in 2025, incorporating estimated cash flow deficit in
TELEKOM ROMANIA MOBILE (TKRM) for the full year.
· 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 will distribute approximately 98% of its expected 2025 Free Cash Flow of
approximately €460mn. Total shareholder remuneration is targeted at
€451mn, corresponding to €298mn cash dividend and approximately €153mn
in share buybacks. The dividend per share stands at €0.7216, and the final
dividend of €0.7415 per share-adjusted for treasury shares outstanding
as of the ex‑dividend date-was paid on July 9, 2025. The share buyback
program is currently ongoing, and the purchase of own shares commenced on
February 28, 2025. As of the date of this release, OTE had executed €82.2mn
in share buybacks. Net proceeds from the sale of Telekom Romania Mobile will
be distributed to shareholders following completion of the transaction.
OTE GROUP HIGHLIGHTS
ΟΤΕ Group Revenues in Q2'25 slightly increased (+0.3%) to €913.3mn, as
growth recorded in Greece was largely offset by continued pressure in Romanian
operations. Revenues from Greek operations were up 1.1%, driven by positive
performances in mobile, TV, broadband, and ICT services, which more than
offset declines in wholesale and handset revenues.
Total Group Operating Expenses, excluding depreciation, amortization,
impairment and charges related to voluntary leave schemes and other
restructuring costs, amounted to €566.0mn in Q2'25, remaining nearly
unchanged (-0.2%) year-on-year, in line with top-line trends.
Group Adjusted EBITDA (AL) reached €328.6mn, up 0.6%, driven by solid growth
of 2.0% in Greek operations.
Operating profit before financial and investing activities (EBIT) stood at
€145.8mn down 14.8% compared to €171.1mn a year ago, mainly driven by
24.7% increase in depreciation due to the write-down of €40.0mn recognized
in Q2'25 related to Telekom Romania Mobile.
Group Capex in Q2'25 amounted to €175.7mn, up 12.6% from Q2'24, mainly due
to the investment in FTTH infrastructure. Capex in Greece and Romania stood at
€169.9mn and €5.8mn, respectively.
Reported Free Cash Flow (AL) stood at €155.1mn compared to €121.2mn in
Q2'24, as lower income tax payments offset higher Capex. The Group recorded
lower income tax outflows in the quarter, mainly due to the €62.7mn
prepayment return by Greek tax authorities, following the absorption of
Cosmote subsidiary by OTE in early 2024. This will be offset in the second
half of 2025 through the respective tax payments by OTE.
The Group's Net Debt stood at €449.1mn as of June 30, 2025, and the ratio of
net debt to 12-month Adjusted EBITDA (AL) stood at 0.3x. The Group does not
face any significant bond maturity until September 2026 (€500mn 0.875%
Notes).
Revenues (€mn) Q2'25 Q2'24 y-o-y 6M'25 6M'24 y-o-y
Greece 855.1 846.1 +1.1% 1,674.0 1,658.4 +0.9%
Romania mobile 61.4 66.7 -7.9% 122.3 132.9 -8.0%
Eliminations (3.2) (2.1) +52.4% (4.2) (3.0) +40.0%
OTE GROUP 913.3 910.7 +0.3% 1,792.1 1,788.3 +0.2%
Adjusted EBITDA (AL) (€mn) Q2'25 Q2'24 y-o-y 6M'25 6M'24 y-o-y
Greece 333.2 326.8 +2.0% 662.3 650.0 +1.9%
margin (%) 39.0% 38.6% +0.4pp 39.6% 39.2% +0.4pp
Romania mobile (4.6) (0.1) - (4.6) 2.7 -
margin (%) -7.5% -0.1% -7.4pp -3.8% 2.0% -5.8pp
OTE GROUP 328.6 326.7 +0.6% 657.7 652.7 +0.8%
margin (%) 36.0% 35.9% +0.1pp 36.7% 36.5% +0.2pp
GREECE HIGHLIGHTS
Operational Data Q2'25 Q2'24 y-o-y Net Adds
Fixed Business
Fixed line subscribers 2,569,635 2,602,041 -1.2% (32,406) (1,855)
Broadband subscribers 2,357,136 2,356,245 0.0% 891 5,974
...out of which: Total Fiber Speeds* 1,649,197 1,581,448 +4.3% 67,749 23,143
470,368 324,308 +45.0% 146,060 39,962
...out of
which: FTTH
TV subscribers 734,931 686,518 +7.1% 48,413 1,714
Mobile Business
Mobile Subscribers 7,154,814 7,189,258 -0.5% (34,444) 17,441
2,945,504 2,784,160 +5.8% 161,344 45,864
Postpaid
4,209,310 4,405,098 -4.4% (195,788) (28,423)
Prepaid
* Including FTTx and FWA technologies
Note: Broadband KPI's for 2024 period have been reclassified.
FTTH: OTE sustained strong momentum in expanding its Fiber-To-The-Home (FTTH)
customer base, achieving another record-breaking quarter with 40k net
additions. The company's strategy to accelerate FTTH adoption is paying off,
supported by the government subsidy programs. The company's total FTTH
subscribers reached 470K, now accounting for 20% 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, adoption has already reached 46%, reflecting
sustained demand for high-quality connectivity.
OTE continues to lead the Greek market in FTTH infrastructure deployment,
further strengthening its market leadership. As of June 2025, its
Fiber-To-The-Home network had passed approximately 1.9 million homes and
businesses, representing a substantial share of the country's total installed
FTTH lines. The Company remains on track to extend its coverage to 2.1 million
homes by the end of 2025 with an ambitious target of approximately 3 million
by 2027. FTTH rollout plan underscores OTE's commitment to meeting growing
demand and supporting its long-term growth.
As of June 2025, the utilization rate of OTE's FTTH infrastructure increased
to 31%, up from 24% a year earlier. Of the 470k total OTE FTTH customers, 84%
are served by OTE's network, while 46% of competitors' FTTH subscribers now
rely on OTE's infrastructure, up from 37% the previous year. This reflects the
positive impact of strategic FTTH wholesale agreements among key market
players concluded last year.
Gigabit Voucher: The first phase of the FTTH subsidy programs is underway,
including 200k Gigabit Vouchers available across the market. These initiatives
are supporting fiber penetration and utilization of OTE's infrastructure,
while Coupon redemptions are steadily rising. 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 over its 5G+ network slicing, leveraging its advanced 5G WiFi
technology to bridge broadband gaps in non‑fibered areas and provide a
reliable voice and broadband offering. The recent addition of voice services
has further strengthened the FWA offering. The service is gaining traction
particularly during the summer period when demand for reliable connectivity in
remote areas peaks, with over 19k customers currently on board. As a result of
the successful expansion of FWA, total broadband net additions turned positive
in the quarter (+6k), reversing the trajectory seen over the previous
quarters, reaching a total broadband base of 2.4 million subscribers.
TV: Leveraging its sports agreement with Nova, OTE's TV segment grew 7.1%
year-on-year to 735k subscribers as of June. The Company continues to benefit
from ongoing customer additions and higher ARPU driven by expanded sports
content offering. 2025 anti‑piracy legislation approval will further drive
the shift to legitimate services and reinforce OTE's market position.
Mobile: OTE sustained its positive trajectory in the postpaid segment this
quarter, continuing to build on the momentum established in previous periods.
The company's focused execution of its prepaid-to-postpaid migration
strategy-underpinned by its superior mobile network quality and compelling
customer propositions-continues to deliver tangible results. During the
quarter, the company added 46k postpaid customers, bringing its total postpaid
base to over 2.9 million -marking a 5.8% increase year-on-year. This growth
was supported by a combination of new customer additions and the steady
migration of existing prepaid users to postpaid offerings. Prepaid customers
now account 59% of the total mobile base, compared to 61% a year ago,
underlining the continued potential for further migrations to higher-value
postpaid services.
Reinforcing its strategic commitment to network leadership, OTE continues to
expand and enhance its mobile infrastructure. Its 5G network now reaches over
99% of the population, while the rollout of the advanced 5G+ (Stand-Alone)
network has also made significant progress, now covering more than 70% of the
population. This next-generation technology is set to further elevate the
customer experience, offering significantly faster download and upload speeds,
ultra-low latency, enhanced indoor coverage, and greater network reliability.
OTE remains the only operator in Greece to offer a commercially available 5G
Stand-Alone network, underscoring OTE's role as a pioneer in delivering
cutting-edge connectivity solutions.
OTE sustained its strong competitive positioning again this year. OTE's mobile
network was once again recognized as "the Fastest Mobile Network in Greece" at
the Speedtest AwardsTM by Ookla® for the 9(th) consecutive year and "Best in
Test" by "umlaut" for the 11(th) consecutive year. Repeated recognitions
underscore the quality and reliability of OTE's network
infrastructure-supported by ongoing strategic investments-which continue to
enhance customer loyalty and drive revenue momentum, enabling OTE to
differentiate from competition.
Financial Data (€mn) Q2'25 Q2'24 y-o-y 6M'25 6M'24 y-o-y
Revenues 855.1 846.1 +1.1% 1,674.0 1,658.4 +0.9%
Retail Fixed Services 228.8 227.5 +0.6% 457.4 456.6 +0.2%
...Including Data Com. 253.5 250.6 +1.2% 505.5 502.2 +0.7%
Mobile Service Revenues 265.6 257.4 +3.2% 511.9 500.7 +2.2%
Wholesale Services 158.9 164.4 -3.3% 300.7 313.4 -4.1%
Other Revenues 201.8 196.8 +2.5% 404.0 387.7 +4.2%
…οut of which System Solutions 90.6 77.4 +17.1% 182.5 155.4 +17.4%
Adjusted EBITDA (AL) 333.2 326.8 +2.0% 662.3 650.0 +1.9%
margin (%) 39.0% 38.6% +0.4pp 39.6% 39.2% +0.4pp
· Total revenues from Greek operations increased by 1.1% to €855.1mn in
Q2'25, driven by sustained growth in mobile, TV, broadband, and ICT services,
which more than offset declines in wholesale and handsets revenues.
· Retail fixed service returned to positive territory, increasing by 0.6%
after several quarters of decline or stagnation. Continued momentum in TV
segment, the beneficial effect of the Gigabit voucher for FTTH connections
combined with the increased FTTH rollout and the launch of FWA services this
year have all been supporting fixed retail revenue.
· Mobile service revenues grew by 3.2% in Q2'25, indicating a significant
acceleration in growth and reinforcing the segment's strong upward trajectory.
Ongoing expansion, 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 provides
further growth opportunities. In addition, the Company has adjusted its
prepaid portfolio across its physical channels ensuring a balanced value
proposition that supports mobile growth going forward. This strategic
initiative is expected to support ARPU while also facilitating a gradual shift
of customers toward contract offerings.
· Wholesale revenues declined by 3.3% in the quarter, primarily driven by
lower contributions from low-margin international transit traffic revenues, as
well as the anticipated drop in domestic wholesale stream, 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 2.5% in the quarter, supported by sustained
growth in our ICT business. In particular, systems solutions delivered a
strong performance with a 17.1% increase in revenues. OTE has secured multiple
contracts, covering managed network services, ERP implementations, fiber optic
networks, archive digitization, and the modernization of public services,
among other initiatives. OTE recently implemented the National Electronic
Health Record, a major initiative for the digital modernization of Greece's
healthcare system, in collaboration with specialized partners.
· Adjusted EBITDA (AL) in Greece increased by 2.0% to €333.2mn,
reflecting a further strengthening of the positive trends observed in previous
periods. The corresponding margin reached 39.0%, an increase compared to 38.6%
in Q2'24. In addition to revenue growth, cost efficiencies, notably in
personnel expenses, helped counterbalance certain cost increases, contributing
to the 40-basis point expansion in the Adjusted EBITDA (AL) margin and
supporting progress towards the EBITDA target.
ROMANIA HIGHLIGHTS
Mobile Segment Operational Data Q2'25 Q2'24 y-o-y Net Adds
Mobile Subscribers 3,426,613 3,600,870 -4.8% (174,257) (17,753)
1,978,727 1,951,151 +1.4% 27,576 5,640
Postpaid
1,447,886 1,649,719 -12.2% (201,833) (23,393)
Prepaid
Financial Data (€mn) Q2'25 Q2'24 y-o-y 6M'25 6M'24 y-o-y
Revenues 61.4 66.7 -7.9% 122.3 132.9 -8.0%
Mobile Service Revenues 35.3 38.3 -7.8% 71.3 77.2 -7.6%
Other Revenues 26.1 28.4 -8.1% 51.0 55.7 -8.4%
Adjusted EBITDA (AL) (4.6) (0.1) - (4.6) 2.7 -
margin (%) -7.5% -0.1% -7.4pp -3.8% 2.0% -5.8pp
Total revenues from Telekom Romania Mobile (TKRM) amounted to €61.4mn in the
quarter, a decrease of 7.9% year-on-year, primarily due to continued pressure
in the postpaid segment.
Ongoing positive customer additions on the postpaid segment continues, as the
postpaid base achieved a 1.4% year-on-year increase to a total of
approximately 2 million subscribers. Net additions in the quarter stood at 6k.
Adjusted EBITDA (AL) was negative in the quarter (€4.6mn) as performance of
Telekom Romania Mobile was mainly impacted by ongoing topline pressure.
SIGNIFICANT EVENTS OF 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.
Spin-off of passive mobile infrastructure business
On June 23, 2025, the Annual General Meeting of Shareholders approved 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.3, 59-74 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 Annual General Meeting of Shareholders also approved the
appointment of representative of OTE S.A. to sign the final notarial deed for
the demerger and establishment of the new company.
Dividend
On June 23, 2025, the Annual General Meeting of Shareholders approved the
distribution of a dividend €0.7216 per share. The final dividend of
€0.7415 adjusted, for own shares outstanding as of the ex-dividend date, was
paid out on July 09, 2025.
Share Buyback Program and Cancellation of Own Shares
On February 28, 2025, the second year of "2024-2026 Buyback Program"
commenced. During the second quarter of 2025 the Company acquired 2,874,155
own shares at an average price of €16.39 per share.
The Annual General Meeting of Shareholders of June 23, 2025 approved in
accordance with article 49 of Law 4548/2018, the cancellation of 8,840,446 own
shares, along with the reduction of the Company's share capital by Euro
25,018,462.18 (equivalent to the above number of own shares multiplied by the
nominal value of the Company's share, i.e. Euro 2.83) and the amendment of
Article 5 ("Share Capital") of the Company's Articles of Incorporation.
The Company acquired the above shares during the period from June 3, 2024, to
April 30, 2025, at an average price of Euro 14.83 per share. Following
notification of the Athens Stock Exchange and consummation of other legal and
regulatory procedures, the aforementioned shares were canceled and delisted
from the Athens Stock Exchange (ATHEX) as of July 22, 2025, when trading of
the aforementioned shares on the ATHEX has ceased.
New Share Buyback Program (SBB)
The Annual General Meeting of Shareholders of June 23, 2025, approved a new
two-year own-share Buyback Program in the context of a) the Shareholders'
Remuneration Policy in partial execution thereof and b) OTE Shares Award
Incentive Plan, covering up to 10% of the Company's share capital, at a price
range between €1.0 and €30.0 per share (hereafter the 2026-2028 Program).
The SBB Program will be valid for a 24-month period (January 12, 2026, to
January 12, 2028), with the aim a) to cancel the shares acquired and b) to
grant them to personnel and/or members of the management of the Company and/or
an affiliated company.
EVENTS AFTER THE QUARTER
Telekom Romania Mobile Communications Disposal approved by Romanian
Competition Council
On July 29, 2025, OTE announced that the Romanian Competition Council (RCC)
approved the sale of Telekom Romania Mobile Communications ("TKRM"), in a
two-step Transaction, involving:
· The sale of certain TKRM assets to Digi, including the prepaid
customer business segment, certain spectrum rights, and part of the Tower
portfolio.
· The sale of TKRM's shares (representing the entire TKRM's share
capital minus 7 shares held by S.N. Radiocommunicatii) held by OTE, excluding
the above assets, to Vodafone Romania.
The completion of the Transaction remains subject to the finalization of the
relevant documentation among the parties, as well as the approval on certain
matters by ANCOM (Romanian Telecom Regulator) and is expected to take place
within the third quarter of 2025.
Issuance of new Bond
On July 03, 2025, OTE PLC issued a €60mn bond due October 2025, with a yield
of 2.394% per annum, fully subscribed by Deutsche Telekom AG. The proceeds
will be used to cover general corporate needs of OTE Group.
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, August 06, 2025
13:00pm (EEST), 11:00am (BST), 12:00pm (CEST), 06:00am (EDT)
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/otegroup250806.html
(https://87399.themediaframe.eu/links/otegroup250806.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 June
30, 2025 and December 31, 2024
III. Consolidated Income Statement for the quarter and six
months ended June 30, 2025 and comparative 2024
IV. Consolidated Statement of Cash Flows for the quarter and six
months ended June 30, 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 from Financial Statements of the Group 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) 30/06/2025 30/06/2024
Long-term borrowings 849.0 848.1
Short-term portion of long-term borrowings - -
Short-term borrowings - 40.0
Lease liabilities (long-term portion) 183.6 183.6
Lease liabilities (short-term portion) 65.0 64.4
Financial liabilities related to digital wallets 9.6 6.9
Cash and cash equivalents (658.1) (686.0)
Net Debt 449.1 457.0
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.
Q2'25 (€ mn) OTE Group Greece Romania
Q2'25 Q2'24 Q2'25 Q2'24 Q2'25 Q2'24
Revenues 913.3 910.7 855.1 846.1 61.4 66.7
Other Operating Income 1.4 0.4 0.9 (0.2) 0.6 0.6
Total Operating Expenses (before Depreciation, amortization and impairment) (576.8) (586.0) (519.1) (523.8) (61.0) (64.3)
EBITDA 337.9 325.1 336.9 322.1 1.0 3.0
Costs related to voluntary leave schemes 10.8 18.7 10.8 18.7 - -
Other restructuring costs - - - - - -
Adjusted EBITDA 348.7 343.8 347.7 340.8 1.0 3.0
Amortization of lessee use rights to leased assets* (17.7) (15.0) (12.6) (12.1) (5.1) (2.9)
Interest expense on leases (2.4) (2.1) (1.9) (1.9) (0.5) (0.2)
Adjusted EBITDA (AL) 328.6 326.7 333.2 326.8 (4.6) (0.1)
margin % 36.0% 35.9% 39.0% 38.6% -7.5% -0.1%
6M'25 (€ mn) OTE Group Greece Romania
6M'25 6M'24 6M'25 6M'24 6M'25 6M'24
Revenues 1,792.1 1,788.3 1,674.0 1,658.4 122.3 132.9
Other Operating Income 3.5 4.0 2.2 3.1 1.4 1.0
Total Operating Expenses (before Depreciation, amortization and impairment) (1,121.6) (1,128.4) (1,009.0) (1,012.4) (116.9) (119.1)
EBITDA 674.0 663.9 667.2 649.1 6.8 14.8
Costs related to voluntary leave schemes 23.6 28.6 23.6 28.6 - -
Other restructuring costs 0.6 - 0.6 - - -
Adjusted EBITDA 698.2 692.5 691.4 677.7 6.8 14.8
Amortization of lessee use rights to leased assets* (35.6) (34.9) (25.3) (24.0) (10.3) (10.9)
Interest expense on leases (4.9) (4.9) (3.8) (3.7) (1.1) (1.2)
Adjusted EBITDA (AL) 657.7 652.7 662.3 650.0 (4.6) 2.7
margin % 36.7% 36.5% 39.6% 39.2% -3.8% 2.0%
* Amortization of lessee use rights to leased assets does not include an
amount of 22.6mn€ in relation to the write down on right-of-use assets of
Telekom Romania Mobile.
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) Q2'25 Q2'24 6M'25 6M'24
Purchase of property plant and equipment and intangible assets - Capex (175.7) (156.1) (301.2) (273.6)
Spectrum Payments - - - -
Adjusted CAPEX (175.7) (156.1) (301.2) (273.6)
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) Q2'25 Q2'24 6M'25 6M'24
Net cash flows from operating activities 347.1 289.8 583.0 550.0
Purchase of property, plant, equipment and intangible assets (175.7) (156.1) (301.2) (273.6)
Interest received 2.5 4.0 5.0 7.4
Free Cash Flow 173.9 137.7 286.8 283.8
Lease repayments (18.8) (16.5) (35.0) (35.5)
Free Cash Flow After Lease (AL) 155.1 121.2 251.8 248.3
Payment for voluntary leave schemes 14.8 24.1 25.9 26.3
Payment for other restructuring costs 0.1 0.6 1.2 1.3
Spectrum payments - - - -
Adjusted FCF After Lease (AL) 170.0 145.9 278.9 275.9
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, net impact from write-down and other restructuring
costs.
OTE Group (€ mn) Q2'25 Q2'24 6M'25 6M'24
Profit to owners of the Parent 81.0 125.9 229.9 260.7
Costs related to voluntary leave schemes 8.4 14.6 18.4 22.3
Net Impact from write-down 40.0 - 40.0 -
Other restructuring costs - - 0.5 -
Adjusted Profit to owners of the parent 129.4 140.5 288.8 283.0
II. ΟΤΕ GROUP CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(€ mn) 30/06/2025 31/12/2024
ASSETS
Non - current assets
Property, plant and equipment 2,260.6 2,227.6
Right-of-use assets 232.5 262.4
Goodwill 376.6 376.6
Telecommunication licenses 211.6 227.8
Other intangible assets 238.0 279.6
Investments 0.1 0.1
Loans to pension funds 54.3 56.5
Deferred tax assets 174.5 189.3
Contract costs 29.0 33.7
Other non-current assets 72.2 77.4
Total non - current assets 3,649.4 3,731.0
Current assets
Inventories 49.6 51.1
Trade receivables 650.0 536.4
Other financial assets 6.7 6.3
Contract assets 83.1 76.5
Other current assets 139.5 126.2
Restricted cash 0.8 0.7
Cash and cash equivalents 658.1 467.0
Total current assets 1,587.8 1,264.2
TOTAL ASSETS 5,237.2 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 (168.6) (104.2)
Statutory reserve 440.7 440.7
Foreign exchange and other reserves (152.7) (156.4)
Retained earnings 132.6 200.5
Total equity attributable to owners of the Parent 1,836.3 1,964.9
Total equity 1,836.3 1,964.9
Non-current liabilities
Long-term borrowings 849.0 848.5
Provision for staff retirement indemnities 100.8 109.6
Provision for youth account 66.1 69.0
Contract liabilities 77.5 78.9
Lease liabilities 183.6 189.4
Deferred tax liabilities 0.8 0.6
Other non - current liabilities 75.9 86.9
Total non - current liabilities 1,353.7 1,382.9
Current liabilities
Trade accounts payable 811.2 866.4
Income tax payable 187.6 66.9
Contract liabilities 275.9 258.9
Lease liabilities 65.0 63.4
Dividends payable 299.6 2.4
Other current liabilities 407.9 389.4
Total current liabilities 2,047.2 1,647.4
Total liabilities 3,400.9 3,030.3
TOTAL EQUITY AND LIABILITIES 5,237.2 4,995.2
III. OTE GROUP CONSOLIDATED INCOME STATEMENT
(€ mn) Q2'25 Q2'24 y-o-y 6M'25 6M'24 y-o-y
Fixed business:
Retail services revenues 228.8 227.5 +0.6% 457.4 456.6 +0.2%
Wholesale services revenues 158.8 164.3 -3.3% 300.6 313.3 -4.1%
Other revenues 124.1 111.3 +11.5% 249.9 223.5 +11.8%
Total revenues from fixed business 511.7 503.1 +1.7% 1,007.9 993.4 +1.5%
Mobile business:
Service revenues 300.8 295.7 +1.7% 583.0 577.8 +0.9%
Handset revenues 62.6 77.0 -18.7% 130.5 150.4 -13.2%
Other revenues 5.5 5.9 -6.8% 10.1 10.7 -5.6%
Total revenues from mobile business 368.9 378.6 -2.6% 723.6 738.9 -2.1%
Miscellaneous other revenues 32.7 29.0 +12.8% 60.6 56.0 +8.2%
Total revenues 913.3 910.7 +0.3% 1,792.1 1,788.3 +0.2%
Other operating income 1.4 0.4 - 3.5 4.0 -12.5%
Operating expenses
Interconnection and roaming costs (126.7) (130.9) -3.2% (231.2) (243.2) -4.9%
Provision for expected credit losses (9.2) (10.2) -9.8% (17.8) (18.7) -4.8%
Personnel costs (100.0) (103.8) -3.7% (200.9) (207.4) -3.1%
Costs related to voluntary leave schemes (10.8) (18.7) -42.2% (23.6) (28.6) -17.5%
Commission costs (22.2) (23.0) -3.5% (44.5) (46.6) -4.5%
Merchandise costs (87.4) (92.4) -5.4% (168.0) (194.6) -13.7%
Maintenance and repairs (21.5) (23.4) -8.1% (44.5) (44.2) +0.7%
Marketing (22.5) (19.0) +18.4% (39.5) (34.2) +15.5%
Other operating expenses (176.5) (164.6) +7.2% (351.6) (310.9) +13.1%
Total operating expenses before depreciation, amortization and impairment (576.8) (586.0) -1.6% (1,121.6) (1,128.4) -0.6%
Operating profit before financial and investing activities, depreciation, 337.9 325.1 +3.9% 674.0 663.9 +1.5%
amortization and impairment
Depreciation, amortization and impairment (192.1) (154.0) +24.7% (342.0) (310.6) +10.1%
Operating profit before financial and investing activities 145.8 171.1 -14.8% 332.0 353.3 -6.0%
Income and expense from financial and investing activities
Finance income and costs (5.7) (3.1) +83.9% (8.8) (7.4) +18.9%
Foreign exchange differences, net (1.5) 0.4 - (1.5) 0.5 -
Gains / (losses) from investments and other financial assets - Impairment 0.1 - - 0.4 0.3 +33.3%
Total gain/ (loss) from financial and investing activities (7.1) (2.7) +163.0% (9.9) (6.6) +50.0%
Profit before tax 138.7 168.4 -17.6% 322.1 346.7 -7.1%
Income tax (57.7) (42.5) +35.8% (92.2) (86.0) +7.2%
Profit for the period 81.0 125.9 -35.7% 229.9 260.7 -11.8%
IV. GROUP CONSOLIDATED STATEMENT OF CASH FLOW
(€ mn) Q2'25 Q2'24 6M'25 6M'24
Cash flows from operating activities
Profit before tax 138.7 168.4 322.1 346.7
Adjustments for:
Depreciation, amortization and impairment 192.1 154.0 342.0 310.6
Costs related to voluntary leave schemes 10.8 18.7 23.6 28.6
Provision for staff retirement indemnities 1.6 0.5 2.1 1.0
Foreign exchange differences, net 1.5 (0.4) 1.5 (0.5)
(Gains) / losses from investments and other financial assets- Impairment (0.1) - (0.4) (0.3)
Finance costs, net 5.7 3.1 8.8 7.4
Working capital adjustments: (14.0) (16.7) (117.4) (42.1)
Decrease / (increase) in inventories 13.8 0.6 1.3 (2.2)
Decrease / (increase) in receivables (51.8) (45.1) (129.9) (96.4)
(Decrease) / increase in liabilities (except borrowings) 24.0 27.8 11.2 56.5
Payment for voluntary leave schemes (14.8) (24.1) (25.9) (26.3)
Payment of staff retirement indemnities and youth account, excluding (1.5) (4.9) (2.8) (6.7)
employees' contributions
Interest and related expenses paid (except leases) (3.1) (3.4) (6.1) (6.2)
Interest paid for leases (2.4) (2.1) (4.9) (4.9)
Income tax (paid)/ received 32.6 (3.3) 40.4 (57.3)
Net cash flows from operating activities 347.1 289.8 583.0 550.0
Cash flows from investing activities
Purchase of financial assets - (0.3) - (0.3)
Net outflows related to disposal of subsidiaries/investments - (0.1) (0.2) (8.7)
Repayment of loans receivable 1.2 1.8 3.6 3.6
Purchase of property, plant and equipment and intangible assets (175.7) (156.1) (301.2) (273.6)
Interest received 2.5 4.0 5.0 7.4
Net cash flows used in investing activities (172.0) (150.7) (292.8) (271.6)
Cash flows from financing activities
Acquisition of treasury shares (47.5) (46.3) (63.3) (62.3)
Proceeds from loans granted and issued - 40.0 - 40.0
Lease repayments (18.8) (16.5) (35.0) (35.5)
Financial liabilities related to digital wallets 0.6 1.7 0.5 1.6
Dividends paid to Company's owners (0.6) - (0.6) -
Net cash flows used in financing activities (66.3) (21.1) (98.4) (56.2)
Net increase/ (decrease) in cash and cash equivalents 108.8 118.0 191.8 222.2
Cash and cash equivalents, at the beginning of the period 549.6 567.8 467.0 463.9
Net foreign exchange differences (0.3) 0.2 (0.7) (0.1)
Cash and cash equivalents, at the end of the period 658.1 686.0 658.1 686.0
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR FIFLDTSIRIIERecent news on Hellenic Telecommunications Organization SA
See all newsREG - Hellenic Telecomms - Q2 2025 Financial Results
AnnouncementREG - Hellenic Telecomms - Purchase of Own Shares
AnnouncementREG - Hellenic Telecomms - Total no of shares & voting rights
AnnouncementREG - Hellenic Telecomms - TKRM disposal approval by RCC
AnnouncementREG - Hellenic Telecomms - Purchase of Own Shares
Announcement