NOS SGPS (NOS) Q2 2024 earnings summary

Executive summary

• Strategic execution and operational discipline drove robust Telco performance in both B2C and B2B segments, maintaining high service quality and positive operational momentum.

• Free cash flow was significantly boosted by operational performance and non-recurring effects, including a €30.6 million after-tax gain from the sale of a tower portfolio.

• Media & Entertainment underperformed due to fewer blockbuster movies in theaters, impacting cinema revenues.

Financial highlights

• Consolidated revenue grew 4.7% year-over-year to €412.2 million, with Telco revenue up 6.1%.

• EBITDA AL increased 3.8% to €156.5 million, with Telco EBITDA AL up 6.1% year-over-year.

• Net income surged 77.2% year-over-year to €80.7 million, mainly due to the tower sale.

• Free cash flow increased by €99.2 million, supported by operational performance and one-off effects.

• CAPEX declined 5.1% year-over-year to €93.1 million, reflecting lower network expansion investments.

Outlook and guidance

• Continued positive operational momentum expected, with further expansion in fixed and mobile coverage and reinforcement of 5G leadership.

• Financial costs expected to stabilize as interest rates plateau; CapEx to continue downward trend.

• Expectations for Media & Entertainment to improve in 2H24 with a stronger lineup of blockbuster movie releases.