Hellenic Telecommunications Organization (HTO) Q2 2024 earnings summary

Executive summary

• Group revenues rose 7.9% year-over-year to €1,788.3mn in H1 2024, driven by strong Greek operations, while Romania faced ongoing challenges.

• Adjusted EBITDA (AL) increased 0.6% to €652.7mn, with margin contraction to 36.5% due to higher low-margin revenue streams.

• Free cash flow after leases declined 32.9% to €248.3mn, mainly due to higher tax payments, capex, and timing of voluntary retirement schemes.

• CEO strategy focuses on monetizing investments in fiber, mobile, pay TV, and ICT, emphasizing digital transformation and operational efficiency.

• Shareholder remuneration for 2024 totals €450mn, including a 23% higher dividend per share at €0.71 and a share buyback program.

Financial highlights

• Group revenues: €1,788.3mn (+7.9% YoY); Greece: €1,658.4mn (+8.9% YoY); Romania: €132.9mn (-3.9% YoY).

• Adjusted EBITDA (AL): €652.7mn (+0.6% YoY); margin: 36.5% (-2.6pp YoY); Greece margin at 39.2%.

• Free cash flow after leases was €121mn in Q2 and €248.3mn in H1, down 60% and 32.9% YoY, respectively.

• Group adjusted CapEx was €156mn in Q2 and €273.6mn in H1, down 6% YoY in Q2 but up 10.9% YoY in H1.

• Net debt at €457mn, with Net Debt/Adj. EBITDA (AL) at 0.3x; cash and cash equivalents at €686mn.

Outlook and guidance

• FY 2024 CapEx guidance confirmed at €610–620mn, mainly for FTTH rollout.

• Free cash flow target for 2024 reaffirmed at ~€470mn.

• Shareholder remuneration guidance maintained at ~€450mn, or 95% of free cash flow.

• Fixed service revenues expected to improve in 2025, driven by FTTH vouchers, wholesale agreements, and pay TV content sharing.