OTE’s growth trajectory will continue, driven by the increasing adoption of FTTH (optical fiber to the home), the success of the Fixed Wireless Access service and the performance of television services, the group’s management estimated.
Following the 9-month results, OTE’s chairman and CEO, Kostas Nebis, stated his satisfaction with the performance in the retail fixed sector, where, as he said, “despite the challenges, fixed services remain on a positive trajectory for the second consecutive quarter, while the mobile sector continues to grow.”
As he said, the sale of Telekom Romania Mobile (TKRM), which was completed in the third quarter, is “a strategic move that allows OTE to focus on the domestic market and continue to create further value for its shareholders.”
OTE shareholders benefit from the sale of the subsidiary in Romania and will receive, as announced, an extraordinary dividend of 0.10 euros, the payment of which will be made on December 30, 2025.
Additionally, the group’s 2025 targets are being adjusted: OTE expects free cash flow of 530 million euros in 2025, up from 460 million euros (before the aforementioned sale). Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) will increase by approximately 2% this year, as management expects strong performance in its core services (mobile, broadband and television), combined with effective cost management in various areas. Investments (CAPEX) will amount to 600 million (no change), as the company continues to develop its FTTH infrastructure and increase the coverage of the 5GStand Alone (SA) network on which the Fixed WirelessAccess (FWA) service is based.
Regarding the 9 months, OTE Group’s turnover increased by 2.3%, to 2,548 million, adjusted EDITDA by 1.9% to 1,022.4 million and adjusted profits distributed to shareholders by 2.4% to 469.9 million euros.
Investments in fixed assets during the same period rose by 8.2%, to 437.1 million, while net debt amounted to 698.1 million, up 2%. In the network sector, after undertaking the entire partially subsidized Ultra Fast Broadband (UFBB) project, OTE aims to bring FTTH to approximately 3.5 million homes and businesses by 2030, while the year will end with approximately 2.1 million.
Speaking to analysts, Nebis noted that the agreement for UFBB is fully compatible with OTE’s objectives, as, in any case, OTE in the Ultra Fast areas has a significant market share. OTE’s FTTH subscribers amount to 509 thousand, representing 22% of total broadband connections. OTE management is particularly pleased with the progress of the FWA service, which now has around 40 thousand subscribers. The growing adoption of FWA contributed significantly to the increase in net broadband connections in a traditionally sluggish quarter, increasing OTE’s total broadband subscriber base to 2.4 million.
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