OTE announced strong performance in the third quarter of 2024, with an increase in revenue and adjusted EBITDA (AL) at Group level.
According to the company’s announcement, consolidated revenues at Group level increased by 1.8% and amounted to 897.2 million euros in the third quarter, mainly thanks to the positive performance in Greece.
Adjusted EBITDA (AL) profitability stood at 350.1 million euros, up 1.5%. The Group’s Adjusted EBITDA (AL) margin in the quarter stood at 39%, driven by the high contribution of ICT revenues.
Adjusted fixed asset investments reached 159.4 million, down 13%. Free cash flow after leases came in at 95.2 million euros, down from 27 million euros in the third quarter of 2023, mainly due to lower income tax payments and payments under the voluntary retirement program.
The Group’s net borrowing on 30 September 2024 stood at 684.3 million euros and corresponds to 0.5 times the annual adjusted EBITDA (AL). The next bond repayment for the Group is set for September 2026.
In Greece, the growth path continued, with revenues increasing by 2.5%, to 832.5 million euros, thanks to strong performances in mobile, broadband services, TV services, and ICT projects.
Adjusted EBITDA (AL) profitability rose by 1.5% year-on-year to 353.1 million euros, with the margin remaining high at 42.4%. Retail fixed income was almost flat in the quarter at 227.6 million euros, while revenues from mobile services increased by 2.9% and reached 284.2 million euros.
Other revenue increased by 12.4% in the quarter, mainly reflecting the strong momentum of ICT projects.
For another quarter, OTE continued its strong additions of FTTH subscribers, registering 31,000 new connections, with the total subscriber base reaching 355,000. OTE’s FTTH infrastructure penetration (percentage of customers on available lines) increased to 26.1% from 19.4% a year ago.
As the management of OTE Group estimates, the new subsidy coupon for optical fiber connection (Gigabit Voucher), which is expected to be launched, will further encourage the adoption of FTTH connections. The transition to fiber optic services, as noted in the announcement, is expected to be further promoted by the wholesale volume discount agreement, which is already in place.
OTE will continue to strengthen its technological superiority in Greece, leveraging its competitive advantage in FTTH infrastructure and 5G coverage. Provided there are no further geopolitical challenges, 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 the continued development of ICT activities and supporting its digital transformation country.
As far as TV subscribers are concerned, OTE recorded the biggest increase of the last two years (+7% on an annual basis), with the total subscriber base reaching 710,000. As pointed out in the announcement, this increase clearly reflects the benefits arising from the recent agreement of mutual distribution of sports content between OTE and Nova. It is estimated that this agreement, in addition to providing access to richer sports content, is an effective anti-piracy policy and is expected to lead to the development of the overall pay TV market in Greece.
In Romania, total revenue decreased by 6.6% compared to 66.4 million euros. Revenues from mobile services fell by 15.5% year-on-year and amounted to 40.2 million euros, affected by the difficult competitive environment and the reduction in termination fees.
For 2024, OTE’s total remuneration to shareholders will amount to approximately 450 million euros and will be distributed in a dividend worth 297 million euros as well as in a program for the Acquisition of Own Shares amounting to 153 million euros. The dividend, which has already been paid to shareholders, corresponds to 0.71 euros per share and is increased by 23% compared to 2023.
Nebi: We aim to accelerate our growth in the coming years
Commenting on the results for the third quarter of 2024, the president and CEO of OTE Group, Kostas Nebis, said: “In the third quarter, we continued our dynamic course in the Greek market, recording an increase in revenue and profitability. As we focus on our renewed strategy, we aim to accelerate our growth in the coming years. At the same time, we continue to invest in leading networks and digital services for the benefit of customers and society and maintain our commitment to deliver a leading customer experience, lead in Gigabit networks and further transform the company’s operations.”
Nebis added that “our goal is for the OTE Group to develop into one of the leading digital telecommunication providers in Europe, at the same time leading Greece to the leading digitization positions in Europe. To connect our customers by making their lives better, to empower businesses by helping them grow with the help of technology, while creating a work environment that inspires our people to create, grow and continuously evolve. And all this, having as a priority sustainable growth in all our operations, leveraging the strength and economies of scale of the Telekom Group, but also aiming at increasing the value for our shareholders.”
