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NOS SGPS (NOS) investor relations material

NOS SGPS Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary22 Jul, 2025

Executive summary

  • Consolidated revenues grew 3.2% year-on-year to €458.2M in Q2 2025, led by Telecommunications and strong Audiovisuals & Cinema performance, with the first full consolidation of Claranet Portugal doubling IT scale and expanding market reach.

  • EBITDA increased 5.9% to €202.9M, with margin expansion of 1.2pp to 44.3%, driven by operational efficiency, transformation, and AI initiatives.

  • Net income excluding extraordinary effects rose 16% to €57.4M, while reported net income declined 28% due to fewer one-off gains.

  • CapEx reduction and working capital improvements drove recurring free cash flow up 8.8%, maintaining a solid balance sheet despite acquisitions and dividend payments.

  • Leverage remained at 1.7x, below the 2x reference, with strong liquidity and average cost of debt below 3%.

Financial highlights

  • Operating revenue: €458.2M (+3.2% YoY); EBITDA: €202.9M (+5.9% YoY); EBITDA margin: 44.3% (+1.2pp YoY).

  • Net income (excl. extraordinary): €57.4M (+16% YoY); reported net income: €58M (-28% YoY).

  • CapEx: €91.7M (-1.9% YoY), supporting FCF growth and reflecting completion of major 5G investments.

  • Recurring free cash flow (excl. extraordinary items) up 8.8% to €57.4M.

  • Net debt at €1,145M; leverage at 1.7x; liquidity position at €278M as of June 30.

Outlook and guidance

  • Focus on growth in IT and B2B, leveraging expanded capabilities and partnerships post-Claranet acquisition.

  • No significant integration costs or synergy-driven cost savings expected from Claranet; priority is revenue growth.

  • Transformation and GenAI initiatives expected to continue driving margin expansion and efficiency.

  • No anticipated changes in consumer pricing in the near term; price erosion mainly from product mix and digital brand weight.

  • Confident outlook despite challenging market conditions, with emphasis on new growth avenues and maintaining leadership in 5G.

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Frequently asked questions

NOS SGPS S.A. is a telecommunications and entertainment company providing mobile and fixed-line services, broadband internet, and television solutions. The company offers digital and satellite TV, fiber-optic internet, and mobile network services for residential and business customers. Additionally, NOS operates in the media and entertainment sector, including film production and distribution. The company is headquartered in Lisbon, Portugal, and its shares are listed on Euronext Lisbon.

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