The market positively evaluates the results announced by OTE for the nine-month period of 2023, as it seems that the group maintains profit margins and EBITDA, while simultaneously increasing market shares in mobile and fixed services in our country.
According to information from BnB Daily, OTE is expected to accelerate the investments planned for FTTH and 5G, while the slight decline in ICT projects is attributed to the long pre-election period, which froze revenue collections from specific projects.
COST SAVING
The management of the listed company expects an increase in adjusted EBITDA (AL) levels for the nine-month period, supported by cost-saving initiatives in areas such as personnel and energy costs. OTE has entered into agreements for a significant portion of its energy needs for 2024, securing future costs, albeit at higher prices compared to its previous contract. At the operational level, performance is expected to be influenced by the challenges faced in Romania.
INVESTMENTS €620 MILLION
The management of OTE maintains the target for free cash flows at approximately €500 million, while the Group's investments will be around €620 million, 3% lower compared to the previous forecast of €640 million. This is due to the timing of certain payments for television content and some delays in the implementation of FTTH (Fiber to the Home) due to adverse weather conditions in the previous period.
OTE continues to show positive performance in the broadband services market, as attractive offers and customer upgrades contributed to another increase in subscribers, reaching 2,346 thousand, a 2.1% annual increase. The penetration of broadband connections in the total fixed lines increased to 87%, up from 85% a year ago. Net new connections amounted to 4 thousand in the third quarter, although historically it has a low contribution to the year, attracting the majority of net additions to the market.
MOBILE
With the positive trends of the previous quarters continuing, OTE achieved a 5.5% annual increase in contract subscribers in the quarter. The quarter saw 35 thousand net new connections, a result of attracting subscribers and upgrades from prepaid to contract services.
FTTH NETWORK
At the end of September, 1.148 million households and businesses had access to the FTTH network, and it is expected to exceed 1.3 million by the end of 2023. In the quarter, FTTH customers recorded a strong increase, by 22 thousand, with the total subscriber base growing to 216 thousand. The penetration of OTE's FTTH infrastructure (percentage of customers on available lines) reached 19%, up from 16% a year ago. The penetration of FTTH services to OTE customers, from households where optical fiber has been installed, already exceeds 30%.
TV SUBSCRIBERS
Television subscribers reached 665 thousand in the third quarter of 2023, an increase of 3.3% compared to the same period last year, marking a positive quarter with 17 thousand net additions. In recent months, there has been a strong effort to combat piracy by the relevant authorities in collaboration with key providers. OTE benefited from the increased demand in this quarter, leveraging its rich television content, especially in sports.
EXPANDING 5G
The company continues to expand its 5G network, achieving a significant competitive advantage with nationwide population coverage of 90%, well ahead of the target set for the end of 2023. Coverage in Athens and Thessaloniki already stands at 97%, while 68 other cities in Greece enjoy coverage exceeding 95%, with speeds surpassing 1Gbps in some areas. OTE continues to promote data usage through its networks, with the average data usage per month reaching 14GB in the quarter, an increase of 28%.
