Orange Polska (OPL) Q4 2024 earnings summary

Executive summary

• Delivered strong 2024 results, meeting all objectives with growth in customer base and ARPU across key telco products, especially in the consumer segment.

• Achieved leadership in connectivity, with 5G C-band covering 40% of Poland and significant fiber network expansion.

• Completed the .Grow strategy (2021–2024), driving commercial growth in convergence, mobile, fiber, wholesale, and IT&S.

• Net Promoter Score improved across all segments, securing top market position.

• Financial results were robust, with EBITDAAL up 4.6% year-over-year, net profit exceeding PLN 900m, and organic cash flow around PLN 1bn.

Financial highlights

• Core telecom services revenue grew over 5% year-over-year, driving a 4.6% increase in EBITDA/EBITDAAL.

• Net income increased 12% year-over-year to PLN 913m, supported by higher EBITDAAL and lower employee termination costs.

• Organic cash flow was PLN 985m, with free cash flow now included in regular reporting.

• Economic CapEx/eCapex reached PLN 1.8 billion, with major investments in fiber (PLN 230 million) and mobile (over PLN 500 million).

• Return on capital employed improved from 1.6% in 2020 to 7.9% in 2024.

Outlook and guidance

• 2024 guidance was achieved: revenues declined 1.8%, EBITDAAL grew 4.6%, and eCapex was PLN 1.8bn.

• 2025 priorities: sustain growth in core business (convergence, mobile, fiber), rejuvenate business segment (IT&S), and enhance connectivity via 5G and fiber expansion.

• For 2025, guidance targets low single-digit growth in both revenues and EBITDAAL, with eCapex of PLN 1.8–1.9bn.

• CapEx guidance excludes spectrum acquisition; focus remains on value-creating assets.

• Dividend proposal of PLN 0.53 per share, a 10% increase, with commitment to further increases.