Hellenic Telecommunications Organization S.A.

Adjusted total revenues increased 8% year-on-year, with no margin effect from the phase-out of international wholesale. Fixed retail service revenues, including data communications, rose 1.4% year-on-year; mobile service revenues increased 2.3%; other revenues excluding data coms increased 31.2%; and system solutions revenue grew 52.1%. Adjusted EBITDA after leases increased 3% to a 40.1% margin. CapEx was about EUR 157 million, down 7.7% year-on-year. Free cash flow after leases was EUR 150 million versus EUR 161 million a year ago. Guidance was reaffirmed for full-year EBITDA growth of 3%, CapEx of approximately EUR 600 million, reported free cash flow of around EUR 750 million, and adjusted free cash flow of EUR 570 million to EUR 580 million. Management said FTTH homes passed should reach around 2.4 million by year-end, and the wholesale international transit wind-down will continue to weigh on revenues through 2026 and beginning of 2027.

The CEO framed the quarter as continued progress toward OTE’s 2026 growth ambition, emphasizing that the business is growing strongly once the wholesale wind-down is adjusted out. He highlighted record FTTH adoption, strong fixed wireless growth, record mobile postpaid additions, and double-digit ICT growth, while also pointing to AI, cloud and cybersecurity as future growth pillars. His tone was confident and strategic, with repeated emphasis on network leadership, market differentiation and transformation into a more digital-first, eventually AI-native, company.

The CFO emphasized that adjusted total revenue rose 8% year-on-year, driven by strong system solutions, solid mobile growth and resilient fixed retail, while adjusted EBITDA after leases increased 3% to 40.1%. He cited specific support from roughly EUR 3 million of copper sales, lower personnel expenses, and marketing costs down almost 7%, and said the indirect cost-to-service revenue ratio improved to 28% from 31% a year ago. He also noted CapEx of about EUR 157 million, free cash flow after leases of EUR 150 million, and reiterated full-year CapEx of approximately EUR 600 million plus free cash flow guidance of around EUR 750 million reported and EUR 570 million to EUR 580 million adjusted.

Analysts focused on whether competition could intensify from a potential PPC-Vodafone fiber JV, what that could mean for wholesale and retail pricing, and whether the spectrum renewal process might bring new entrants. Management said the JV is still only a non-binding term sheet and, while it could create future pressure on wholesale revenues, the magnitude depends on how much infrastructure Vodafone overbuilds; on spectrum, they said it is too early and expect more clarity around October or November. Questions also probed ARPU pressure, Q2 EBITDA quality and the sustainability of 3% EBITDA growth; management said ARPU is still supported by prepaid-to-postpaid migration, cost savings from voluntary exits should carry into H2, and AI/digitalization plus top-line momentum support the full-year target.