OTE reports higher Q3 revenue and profitability as fibre and digital services drive growth

OTE Group’s revenue amounted to €882.7 million, up 1% year-on-year. Excluding the impact of the planned gradual phase-out of international wholesale activities, which generate almost zero profit margin, revenue growth reached 5% in the quarter and 8% in the first nine months of the year.

Adjusted EBITDA after leases (EBITDA AL) increased by 3.1% to €371.4 million. The EBITDA AL margin improved by 90 basis points, reaching 42.1%, compared with 41.2% in the third quarter of 2025, reflecting higher service revenue and effective cost management.

Operating profit before financial and investment activities (EBIT) reached €236.9 million, up 6% year-on-year.

Investments of €176.4 Million and Higher Free Cash Flow

Capital expenditure amounted to €176.4 million in the third quarter, representing an increase of 17.8% compared with the corresponding period in 2025. The increase was primarily attributable to higher payments for television content, while investments continued in the expansion of the Fiber-to-the-Home (FTTH) network and the development of the 5G Standalone network, which also supports the 5G WiFi service through Fixed Wireless Access (FWA).

Free cash flow after leases increased by 27.7% to €137.4 million, compared with €107.6 million one year earlier. The improvement was driven by lower income tax payments, higher profitability and improved working capital, despite increased capital expenditure.

As of 30 September 2026, the Group’s net debt stood at €683 million, equivalent to 0.5 times its last-twelve-month adjusted EBITDA AL.

On 22 September 2026, OTE S.A. issued a €350 million bond maturing in September 2029, with an annual yield of 3.853%. The proceeds were used to refinance part of a €500 million bond that matured on 24 September 2026, while the remaining €150 million was repaid.

FTTH: 739,000 Subscribers and Target of 4.6 Million Homes Passed by 2030

OTE recorded strong growth in its FTTH customer base, adding 52,000 net new connections in the third quarter. Total subscribers reached 739,000, representing 31% of total broadband connections, compared with 21% one year earlier.

FTTH penetration among customers with access to OTE’s fibre-optic infrastructure reached 56%. Meanwhile, infrastructure utilisation stood at 44% under the previous coverage definition and 32% under the new “homes passed” definition.

Under the new definition, coverage includes all households and businesses with the ability to connect through fibre-optic infrastructure, regardless of whether they have an active fixed-line connection or are served by another technology. The company will continue reporting both indicators during a transitional period.

OTE aims to cover more than 3.1 million households and businesses by the end of 2026 and more than 4.6 million by 2030, based on the new definition. Fibre expansion is supporting the adoption of ultra-high-speed services, reducing customer churn and contributing to lower operating costs.

In this context, the Group is expanding its in-home connectivity services through solutions such as WiFi Mesh and Fiber to the Room (FTTR), which improve network coverage and performance throughout residential properties.

FWA: Subscriber Base More Than Doubles

The Fixed Wireless Access (FWA) service continued to expand strongly, with its subscriber base reaching 134,000 in the third quarter of 2026, compared with 62,000 in the corresponding period of 2025. A total of 15,000 net new connections were added during the quarter.

The service’s growth is strengthening OTE’s presence in areas where access to high-speed fixed-line networks remains limited. Combined with the expansion of FTTH into rural areas, it is broadening the Group’s ability to compete with satellite connectivity services.

Television: More Than 800,000 Subscribers

Television services also recorded growth, with the subscriber base reaching 802,000, up 5.9% year-on-year. The Group added 9,000 net new connections during the third quarter.

Growth was supported by enhanced sports content, stricter anti-piracy legislation and the abolition of the 10% special tax on subscription television services.

Mobile: Revenue Growth of 2% and Higher Data Usage

Mobile revenue increased by 2% in the third quarter, primarily driven by contract services and stronger demand for higher-value plans, particularly those offering unlimited data.

Net additions to contract subscriptions reached 49,000 during the quarter, mainly reflecting customers migrating from prepaid services. The total contract subscriber base reached 3.2 million, up 7.5% year-on-year.

Average monthly data usage reached 24 GB per customer, representing an increase of 18% compared with the third quarter of 2025. Meanwhile, the share of 5G devices in the active customer base increased by 10 percentage points to 51%.

5G population coverage exceeds 99%, while 5G+ network coverage has reached 85%, further strengthening the Group’s competitive position in the mobile market.

System Solutions: Focus on Cloud, Cybersecurity and Artificial Intelligence

Other revenue amounted to €215.2 million, increasing by 15.7% year-on-year. System Solutions made a significant contribution, generating revenue of €105.9 million, up 9%.

Despite the completion of projects financed through the Recovery and Resilience Facility, OTE aims to sustain its growth momentum by strengthening its presence in Cloud, cybersecurity and artificial intelligence.

The Group is also placing greater emphasis on private-sector projects, as well as opportunities involving the European Union and other international organisations.

Wholesale Revenue Declines Following Planned Phase-Out of Activities

Revenue from wholesale services declined by 24.1% in the third quarter, primarily due to the planned gradual phase-out of international traffic activities that generate almost zero profit margin. The process is expected to be completed by the end of 2026.

In domestic wholesale, revenue is being affected by the expansion of other providers’ FTTH networks and broader market trends. Part of this impact is being offset by increasing demand for OTE’s wholesale FTTH services, which is supporting higher utilisation of its fibre-optic infrastructure.

Overall, the third-quarter results reflect OTE’s strategy of strengthening revenue from higher-value services, expanding its fibre-optic and 5G infrastructure, and capitalising on emerging opportunities in digital solutions, while maintaining strong operating profitability and controlled leverage.