Hellenic Telecommunications Organization (HTO) Q3 2024 earnings summary

Executive summary

• Group revenues increased by up to 2% year-over-year in Q3 2024, with Greek operations up 2.5% and Romania down 6.6%; adjusted EBITDA (AL) was slightly down, but Greek EBITDA grew 1.5%.

• Free cash flow after leases rose sharply to €95.2 million, mainly due to lower tax and capex payments.

• Record TV and FTTH subscriber growth, with 31,000 new FTTH customers and TV subscribers up 24,000 to 710,000 in Q3.

• Strategic focus on digital transformation, FTTH and 5G leadership, and advancing digital infrastructure in Greece.

• Preliminary agreement for Romanian operations sale, allowing focus on Greek market strengths.

Financial highlights

• Q3 2024 revenues: €897.2 million (+1.8% YoY); adjusted EBITDA (AL): €350.1 million (-0.7% YoY); Greek EBITDA up 1.5% to €353 million with a 42.4% margin.

• Adjusted capex for Q3 was €159.4 million, down 13% year-over-year, mainly due to lower TV sports content payments.

• Free cash flow after leases was €95.2 million in Q3, up €68.2 million year-over-year.

• Net debt at €684 million, with Net Debt/Adj. EBITDA (AL) at 0.5x.

• Dividend per share increased by 23% to €0.71, with total shareholder remuneration for 2024 at €450 million.

Outlook and guidance

• FY 2024 organic free cash flow expected at €470 million; reported at €435 million due to extraordinary Romania tax payment.

• Full-year CAPEX expected between €600–610 million, reflecting rapid FTTH deployment.

• Shareholder remuneration for 2024 set at €450 million, including dividends and share buybacks.

• Expectation of accelerated growth in 2025, driven by government FTTH subsidies, removal of broadband tax, and TV content agreements.

• Guidance for organic free cash flow and CAPEX maintained; positive momentum expected to continue.