The results of the Cosmote and Nova deal are positive, according to a report by Deutsche Bank.

It is recalled that the two groups agreed to exchange sports content for a small price (up to €3) in order to deal a blow to pay-TV piracy. The bank leaves a high upside for OTE of over 35% and gives a buy recommendation at €19.5. The house notes that OTE's deal with Nova for their exclusive sports content is positive for the organisation, as it bodes well for both the revenue and cost prospects of pay-TV.

OTE SIZE

Analysts point out that last year OTE recorded €120 million in revenues (4% of total sales) from pay-TV, but without a major contribution to overall profitability. Revenues this year will reach €3.65 analysts estimate net profit to be €820.5 million, with EBITDA at around €1.44 billion. The bank says the share valuation is 8.9 times in P/E terms and 4.3 times in EV/EBITDA terms, with a dividend yield of 5.6%.

THE PACKS

Analysts estimate that the sports package will cost around €28 per subscription, and several pirated subscriptions could be converted to legal ones, increasing revenues for the state. 

THE NUMBERS

The piracy problem in our country is acute, and the numbers are relentless. It is estimated that the number of pirate platforms in the country (illegal channels, streaming services via illegal devices, and/or via the internet) for a subscription fee is between 600,000 and 800,000 subscribers. Consequently, although Greek pay-TV platforms invest millions to acquire national and international rights, they fail to recover their costs, resulting in a total loss of revenue of at least €125 million per year. This situation has resulted in a reduction in investment in new content. Piracy also leads to a reduction in revenue for the Greek state, with annual losses estimated at €75 million.