Positive performance for the second quarter of 2024, with an increase in revenue and adjusted EBITDA (AL) announced the OTE.

In more detail, according to the announcement of the company’s financial results, at Group level, consolidated revenues increased by 7% and amounted to 910.7 million euros mainly thanks to the positive performance in Greece. Adjusted EBITDA (AL) was unchanged at €326.7m, and the margin was 35.9%, due to the challenges in Romania.

Adjusted fixed asset investments were €156.1 million, down 6.4% compared to Q2 2023. Free cash flow after leases was €121.2 million, down 15 .8% on an annual basis, mainly due to different timing of payments under the voluntary retirement program.

The Group’s net borrowing as at 30 June 2024 was €457.0 million and corresponds to 0.3 times the annual adjusted EBITDA (AL). The next major bond repayment for the Group is set for September 2026.

In Greece, the growth trend continued, with revenues increasing by 8%, to 846.1 million euros. Adjusted EBITDA (AL) profitability increased by 1.5% to €326.8 million, with a margin of 38.6%. Revenue from retail landline services remained unchanged in the quarter at €227.5 million while revenue from mobile services increased by 3.7%, continuing the positive trend of recent quarters. Other revenue increased by 21.7% in the quarter, mainly reflecting strong momentum in ICT projects.

OTE continues to expand the total subscriber base in fiber optic services (FTTx), with the total number of subscribers reaching 1,581 thousand. In the quarter, FTTH customers registered a record growth of 38 thousand, with the total subscriber base reaching 324 thousand. OTE’s FTTH infrastructure penetration (percentage of customers on available lines) increased to 24% from 19% a year earlier, thanks to continued network expansion as well as targeted promotions.

As the Management of OTE Group estimates, the new subsidy voucher for optical fiber connection recently approved by the European Commission and expected to be available in the 4th quarter of the year, will further encourage the adoption of FTTH connections. The European Commission’s approval of the offer of volume discounts at wholesale level is expected to contribute to the strengthening of demand and the development of the FTTH infrastructure, as noted in the announcement

OTE will continue to strengthen its technological superiority in Greece, leveraging its competitive advantage in FTTH infrastructures and 5G coverage. In addition, it is expected to continue to benefit from the positive macroeconomic outlook in Greece and the gradual implementation of the Recovery and Resilience Plan, ensuring continued growth of ICT activities.

As far as OTE TV subscribers are concerned, they reached 687 thousand, increased by 6.2% compared to the corresponding period last year, thanks to COSMOTE TV’s streaming service and attractive TV content. The market is expected to benefit from the recent agreement between OTE and NOVA regarding the exchange of their sports channels, which until now were offered exclusively on each provider’s platform.

In Romania, total revenue decreased by 3.8% compared to Q2 2024 and stood at €66.7 million. Revenues from mobile services decreased by 17.3% year-on-year and amounted to 38.3 million euros, affected by the difficult competitive environment and by promotions to retain the customer base of previous periods.

For 2024, OTE’s total remuneration to shareholders will amount to approximately 450 million euros and will be divided into a dividend worth 297 million euros and a Share Purchase Program of approximately 153 million euros. The dividend, corresponding to Euro 0.71 per share, is increased by 23% compared to 2023 and was paid on July 10, 2024.

Kostas Nebi: Proud of the opportunity and responsibility to lead the next day of OTE Group

“I am proud to have the opportunity and responsibility to lead the next day of OTE Group, contributing to the solid edifice built by my predecessors. From the first weeks of my return, I confirmed that the Group has the right people, the necessary resources and the motivation to succeed. As the needs for communication and digitization in Greece increase, I am confident that the prospects ahead of us are positive and we can further improve our performance.

We are the leading provider of digital services in Greece, through which our customers communicate, work and have fun. Building on our competitive advantages, we will identify and exploit all opportunities to sustain our growth. We will continue to invest in fiber networks, 5G and TV content, accelerating their commercial exploitation. We will intensify the transformation of the company and utilize the expertise of the Group and the loyalty of our customers.

The recent agreements for reciprocal distribution of sports content on pay TV and discounts on wholesale FTTH, are fully aligned with the direction we intend to follow, for the benefit of the entire market and the company. All our actions are geared towards sustainable development through digitalisation, simplification and innovation, to create even greater value for customers, shareholders and society at large.”