OTE Group reported a turnover of €1.788 billion, up 7.9%, and adjusted profit attributable to shareholders of €283 million, up 5.3%, for the first half of the year. Basic earnings per share increased by 8.7% to €0.6289.
According to the company, OTE Group's consolidated revenues increased by 6.6% to €910.7 million in Q2 2024 as a result of strong performance in Greece. In Greece, revenues increased by 7.6%, driven by strong performance in mobile, TV services, broadband services, and ICT projects. In Romania, revenues declined by 3.8% in a highly competitive market, partly reflecting the impact of a reduction in mobile termination rates and promotional activities in previous periods aimed at retaining the customer base.
The Group's total operating expenses, excluding depreciation, amortisation, impairment, and charges related to restructuring costs (mainly voluntary severance programs), increased by 11.8% compared to Q2 2023 to €567.3 million, mainly reflecting costs related to revenue growth.
The Group's adjusted EBITDA (AL) profitability remained unchanged at €326.7 million, with pressure on profitability in Romania offsetting the 1.5% increase in Greece. The high contribution of ICT revenues as well as international wholesale revenues, albeit with low margins, resulted in a decrease in the group's adjusted EBITDA (AL) margin in the quarter to 35.9%.
Adjusted fixed asset investments amounted to €156.1 million, down 6.4% from Q2 2023. OTE continues to roll out the largest FTTH network in Greece, increasing its availability to households and businesses. Investments in Greece and mobile Romania amounted to €145.5 million and €10.6 million, respectively.
Free cash flow after leases was €121.2 million in Q2 2024, down 15.8% from Q2 2023, mainly due to different timing of payments under the voluntary redundancy program. The company maintains its free cash flow target for 2024.
The group's net debt as of June 30, 2024, was €457.0 million, equivalent to 0.3 times adjusted EBITDA (AL) on a 12-month basis. The next major bond repayment for the group is set for September 2026 (€500 million bond, 0.875%).
Chairman and CEO Costas Nebis said, "I am proud to have the opportunity and responsibility to lead the next day of OTE Group, contributing to the solid structure built by my predecessors. Since the first weeks of my return, I have confirmed that the group has the right people, the necessary skills, and the motivation to succeed. As the needs for communication and digitalisation in Greece grow, I am confident that the prospects ahead are positive and we can further improve our performance.
We are the leading provider of digital services in Greece, through which our customers communicate, work, and entertain themselves. Building on our competitive advantages, we will identify and exploit all opportunities to sustain our growth. We will continue to invest in fibre networks, 5G, and TV content, accelerating their commercialisation. We will intensify the transformation of the company and leverage the group's expertise and customer loyalty. The recent agreements to reciprocate sports content on pay-TV and discounts on wholesale FTTH are fully aligned with the direction we intend to take, to the benefit of the entire market and the company. All our actions are geared towards sustainable growth through digitalisation, simplification, and innovation to create even greater value for customers, shareholders, and society in general."
