The increase in fiber optic (FTTH) and television subscribers as well as Fixed Wireless Access (FWA) connections, combined with effective cost management, are key factors for the growth that OTE expects this year.
Following the release of the 2024 results and the announcement of the dividend policy, OTE management pointed out that it expects an increase in adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of approximately 2%.
According to the Chairman and CEO, Kostas Nebis, and the General Manager of Financial Affairs, Babis Mazarakis, the planned sale of Telekom Romania Mobile (TKRM) is estimated to be closed towards the end of the first half of the year. The green light of the Romanian Competition Commission is pending, among other things.
The amount that OTE will receive if TKRM is sold will be distributed as a dividend (increasing what has been decided or in the form of an extraordinary dividend).
OTE intends to distribute approximately 98% of the expected free cash flow for 2025 of approximately 460 million euros this year. The total Shareholder Compensation for 2025 will amount to approximately 451 million and will be divided into a proposed dividend of 298 million euros and a Share Buyback Program of 153 million euros.
The proposed dividend corresponds to 0.7216 per share and will be paid, following its approval by the General Meeting of Shareholders in June.
Regarding TKRM, OTE has signed a memorandum of understanding (MoU) with Digi and Vodafone Romania (the former is interested in certain assets of OTE’s subsidiary and the latter in its customer base).
Based on OTE management estimates, if TKRM is not ultimately sold within the current financial year, the impact on the Group’s liquidity will be around 70 million euros.
In 2024, OTE Group increased its turnover by 3.5% to 3,590.8 million and its adjusted EBITDA by 0.4% to 1,347.3 million euros. Adjusted profits allocated to its shareholders increased by 6.8% to 600.8 million and cash and cash equivalents by 0.7% to 467 million euros.
Investments decreased (3.5% to 599.7 million) and adjusted free cash flow decreased by 3.9% to 522.5 million euros. Net debt increased by 1.4% to 643.4 million euros.
This year, OTE Group investments are estimated to range from 610 million to 620 million euros, as OTE continues to develop its FTTH infrastructure.
