NOS SGPS (NOS) Q3 2025 earnings summary

Executive summary

• Achieved robust operational performance with improved RGU trends and the highest net additions since 2023, as well as strong momentum across all business lines in 3Q25.

• Consolidated revenue declined 1.2% year-over-year to €457.3M, mainly due to a 20.9% drop in Cinema & Audiovisuals, while Telco remained resilient.

• EBITDA grew 2.7% year-over-year to €222.7M, with margin expansion driven by cost management, GenAI-supported transformation, and strong Telecom and IT performance.

• Net income rose 24.9% to €65.2M, supported by operational gains, lower financial costs, and favorable tax incentives.

• Recognized as one of the world's most sustainable companies and awarded top distinctions for mobile internet, Wi-Fi, and TV services.

Financial highlights

• Revenue: €457.3M (-1.2% YoY); Telco revenue: €395.9M (+0.3% YoY); IT revenue: €45.2M (-0.4% YoY); Cinema & Audiovisuals: €12.4M (-20.9% YoY).

• EBITDA: €222.7M (+2.7% YoY); EBITDA margin: 48.7% (+1.8pp YoY); EBITDA AL: €188.7M (+2.4% YoY).

• Net income: €65.2M (+24.9% YoY), with extraordinary items excluded.

• Free cash flow before extraordinary items: €70.4M (-19% YoY), impacted by higher tax payments and extraordinary items.

• CAPEX: €91.5M (-2% YoY), with IT CAPEX up 18.6% YoY and Telco CAPEX/revenue at 21.5%.

Outlook and guidance

• Sustained operational momentum expected, leveraging cost discipline, transformation initiatives, and GenAI-driven efficiencies for long-term savings.

• Continued focus on expanding fixed network coverage and value-added growth in mobile and fixed segments.

• Short-term RGU and ARPU trends may soften before stabilizing in the medium term (6–9 months).

• CapEx expected to continue declining in 2026, with further FTTH expansion leveraging third-party networks.

• No decision yet on price increases for next year; evaluation ongoing.