NOS SGPS (NOS) Q3 2024 earnings summary

Executive summary

• Achieved strong business momentum and financial health, with over 6% year-over-year revenue growth and market share gains in retail, especially in mobile and fixed segments.

• EBITDA increased 6.3% to €213 million, with a margin of 49.2%, reflecting improved operating efficiency.

• Net income rose 14.6% year-over-year to €52.6 million, supported by operational gains and cost management.

• Robust performance across all business segments, with positive trends in key operating metrics and customer base growth.

• Achieved nationwide 5G coverage, reaching all Portuguese municipalities and recognized for advanced deployment.

Financial highlights

• Consolidated revenues grew 6.1% year-over-year to €432.7 million, led by Telco (+6.3%) and Audiovisuals & Cinema (+1.7%).

• EBITDA up 6.3% to €213 million; EBITDA after leases up 5.8% to €181.6 million.

• Net income increased 14.6% to €52.6 million; free cash flow surged to €117.4 million, aided by operational momentum and one-off effects.

• CapEx declined 4.9% year-over-year to €92.9 million, with structural reductions in Telco investments.

• Audiovisuals and cinema revenue grew 1.7% despite a 5.3% drop in ticket sales.

Outlook and guidance

• Stable, positive trends expected to continue into Q4, with sustained free cash flow generation due to efficient cost control and declining investment needs.

• Continued focus on expanding nationwide coverage and best-in-class infrastructure, with 80.1% of households covered by FttH and 100% municipalities reached with 5G.

• Ongoing cost efficiency initiatives, including AI-driven projects, expected to accelerate in 2025.

• Strategic focus on technological innovation, including a 20% stake in Daredata for AI and machine learning.

• Commitment to sustainability, with over 90% of financial debt linked to ESG KPIs.