Hellenic Telecommunications Organization (HTO) Q3 2024 earnings summary

Executive summary

• Group revenues increased by 1.8% year-over-year in Q3 2024, with Greek operations up 2.5% and Romania down 6.6%.

• Adjusted EBITDA (AL) was €350.1mn, down 0.7% year-over-year, but Greek EBITDA (AL) grew 1.5% to €353mn with a margin of 42.4%.

• Free cash flow (AL) reached €95.2mn in Q3, up sharply year-over-year, mainly due to lower tax and capex payments.

• Record net additions in TV (710k, +24k in Q3) and FTTH subscribers (355k, +65% YoY), driven by sports content-sharing and government anti-piracy measures.

• Strategic review and preliminary agreement for Romanian operations, allowing focus on Greek market strengths and transformation into a leading European digital telco by 2030.

Financial highlights

• Q3 2024 revenues: €897.2mn (+1.8% YoY); 9M 2024: €2,685.5mn (+5.8% YoY).

• Adjusted EBITDA (AL): €350.1mn (-0.7% YoY); margin 39.0%.

• Free cash flow (AL): €95.2mn in Q3 (+€68.2mn YoY); 9M 2024: €343.5mn.

• Adjusted capex Q3 2024: €159.4mn (-13.0% YoY), mainly due to lower TV sports content payments.

• Net debt at €684.3mn; Net Debt/Adj. EBITDA (AL) at 0.5x.

Outlook and guidance

• FY 2024 organic free cash flow expected at €470mn; adjusted for extraordinary Romania tax payment, expected outcome €435mn.

• Shareholder remuneration for 2024 set at €450mn, including €297mn dividends and €153mn buybacks.

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

• Anticipate further FTTH and TV subscriber growth as new initiatives and anti-piracy measures take effect.

• Capex for 2024 expected at €600–610mn, reflecting rapid FTTH deployment.