NOS SGPS (NOS) Q4 2024 earnings summary

Executive summary

• Achieved record results in revenue, profitability, and cash generation in 2024, with strong market position and leadership in 5G and FTTH coverage reaching 5.7 million households.

• Strategic execution and AI-enabled transformation drove operational success, margin expansion, and enhanced customer experience.

• Market share in telecommunications increased to 31.5%, with sustainable growth and robust shareholder returns.

• Announced acquisition of Claranet Portugal to strengthen business digital transformation capabilities.

Financial highlights

• Consolidated revenues grew 6.2% year-over-year to €1,696.3M; 4Q24 revenues up 8.1% to €448.0M.

• EBITDA increased 7.1% for FY24 to €767.6M; 4Q24 EBITDA up 11.6% to €182.5M, with margin expansion to 40.7%.

• Net income excluding extraordinary effects rose 21.4% to €187.0M; reported net income up 50.6% to €273.1M.

• Free cash flow reached €359.9M in FY24, boosted by €117.2M in non-recurrent events.

• CAPEX decreased 3.9% to €372.7M, reflecting a structural slowdown in investment.

Outlook and guidance

• Focus on technological leadership, customer experience, and operational efficiency, with AI deployment across all business areas.

• Ongoing transformation program expected to deliver further efficiency gains, especially in OpEx and CapEx.

• Commitment to attractive and sustainable shareholder remuneration, maintaining robust capital structure below 2x net debt/EBITDA AL.

• No specific guidance for 2025 revenue or EBITDA growth due to market uncertainty.

• Double-digit B2B revenue growth expected to persist, supported by the Claranet acquisition.