Hellenic Telecommunications Organization S.A.

For the quarter, adjusted total revenues increased 8% year on year, fixed retail service revenues rose 1.4%, mobile service revenues grew 2.3%, and other revenues excluding data communications increased 31.2%. Adjusted EBITDA after leases increased 3% and the margin improved to 40.1%. FTTH net additions were 62,000, bringing the base to 687,000; FWA net additions were 19,000; Pay TV revenue grew in the high single-digit range with net adds of plus 1,000; and system solutions revenue increased 52.1%. CapEx was about EUR 157 million, down 7.7% year on year, and free cash flow after leases was EUR 150 million versus EUR 161 million a year ago. Management expects full-year CapEx of approximately EUR 600 million, full-year EBITDA growth of 3%, reported free cash flow around EUR 750 million, and adjusted free cash flow of EUR 570 million to EUR 580 million.

Kostas Nebis framed the quarter as evidence that OTE is progressing toward its 2026 growth ambition, with strong core execution, network leadership, and an ongoing shift toward digital, AI-enabled operations. He emphasized FTTH, fixed wireless, Pay TV, mobile postpaid growth, and ICT as the main growth engines, while also highlighting the new A- rating from S&P as validation of the company’s resilience and financial strength. His tone was confident and forward-looking, repeatedly stressing that OTE is building foundations for 2027 and beyond through fiber, 5G, cloud, cybersecurity, and AI.

Babis Mazarakis focused on the financial bridge behind the quarter’s performance. He said adjusted total revenues grew 8%, adjusted EBITDA after leases rose 3% to a 40.1% margin, and the company remains on track for 3% full-year EBITDA growth. He cited around EUR 3 million of copper-sale income, lower personnel expenses from voluntary exit schemes, marketing down almost 7%, CapEx of about EUR 157 million, and free cash flow after leases of EUR 150 million; he also reiterated full-year CapEx of approximately EUR 600 million and adjusted free cash flow guidance of EUR 570 million to EUR 580 million.

Analysts pressed management on whether a potential PPC-Vodafone fiber JV could intensify wholesale or retail competition, and on whether spectrum renewal could attract new entrants; management said it is too early to quantify the JV’s impact, though they expect some future pressure depending on infrastructure overbuild, and said spectrum details should become clearer around October or November. Questions also focused on whether slower fixed/mobile growth reflects ARPU pressure and whether the 3% EBITDA target is still achievable; management said mobile growth is being driven by prepaid-to-postpaid migration, with ARPU up EUR 5 to EUR 6 per migration, and said second-half cost savings, AI/digitalization benefits, and ongoing top-line resilience support the guidance. On competitive threats, management said PPC has created some pressure but not a material impact so far, and that Starlink’s momentum has slowed since OTE launched FWA.