OTE's total revenues from Greek operations posted another quarter of strong growth, up 7.6% to €846.1mn. Top line growth reflects the positive momentum in Mobile, Broadband, TV, and ICT, while low-margin international wholesale revenues were up significantly in the quarter. Retail fixed service revenues were unchanged in the quarter, as continuing positive trends in Broadband, through upselling to FTTx, and TV were offset by contracting legacy services.
In Q2’24, total Revenues of OTE Group were up 6.6% to €910.7mn, fueled by solid performance in Greece. Revenues from Greek operations were up 7.6%, benefiting from solid growth in Mobile, Broadband, TV, and ICT. In Romania, revenues were down 3.8% in a highly competitive market, partly reflecting the impact of mobile termination rate (MTR) cuts, and customer-retention promotions in prior periods.
Total Group Operating Expenses, excluding depreciation, amortization, impairment, and charges related to restructuring costs (primarily voluntary leave schemes), amounted to €567.3mn in Q2’24, up 11.8%, mainly reflecting higher direct costs, associated with higher revenues. Group Adjusted EBITDA (AL) was unchanged at €326.7mn, as the 1.5% growth from Greek operations was offset by pressure on Romania’s profitability.
The significant contribution from ICT and low-margin
international wholesale revenue explains the drop in Group Adjusted EBITDA (AL) margin in the quarter to
35.9%.
Message from the Chairman & CEO, Kostas Nebis,
“I am proud to have the opportunity and responsibility to lead OTE Group into the future, adding another stone to the solid edifice built by my predecessors. In the few weeks since I rejoined OTE, I have been able to appreciate first-hand that the Group enjoys the right skills, resources, and purpose to succeed. I am confident that the prospects ahead of us are encouraging, and we can improve our performance, as Greece’s communication and digitization requirements grow. “We are the leading provider of digital services in the Greek market of the technological solutions that customers expect for work, for interaction, and for entertainment. Using our competitive advantages, we will identify and exploit the opportunities to sustain our growth. We will pursue our investments in fiber, 5G and TV content, and accelerate their monetization. We will step up the transformation of our business model and leverage our Group platforms and customer appeal. Initiatives completed over the past few weeks, such as the TV sports content-sharing and FTTH wholesale agreements, are fully aligned with the direction we intend to take, benefiting the whole market as well as OTE. All our energies are geared at driving sustainable growth through digitalization, simplification, and innovation, to create more value for customers, shareholders, and society at large.”
