OTE’s Consolidated Revenues in Q1’24 were up 9.2% to €877.6mn, fueled by sharp growth in Greece.
Revenues from Greek operations were up 10.3% to €812.3mn, benefiting from solid performances in Mobile,
TV, Broadband, and particularly ICT. In Romania, revenues were down 4.1% at €66.2mn, mainly 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 €532.5mn in Q1’24, up 15.0% compared
to Q1’23, primarily reflecting higher direct costs, associated with higher revenues.
Group Adjusted EBITDA (AL) was up 1.2% at €326.0mn, resulting in a margin of 37.1%. In Greece, Adjusted
EBITDA (AL) increased by 1.5% to €323.2mn, yielding a margin of 39.8%, while Romania Mobile operations
recorded an Adjusted EBITDA (AL) of €2.8mn in the quarter. The significant contribution from ICT and low-
margin international wholesale revenue explains the lower Group Adjusted EBITDA (AL) margin in the
quarter.
Adjusted Capex amounted to €117.5mn, up 47.1% from Q1’23, reflecting the strategic focus on FTTH
deployment. Capex timing in 2023 had been skewed toward the latter part of the year. Capex in Greece and
Romania stood at €106.4mn and €11.1mn, respectively, in Q1’24.
Free Cash Flow (AL) stood at €127.1mn, down 43.8% versus Q1’23 despite higher profitability, mainly due
to higher income tax payments and higher capex payments during the quarter. The company remains on track to deliver its full year Free Cash Flow target. Tax outflows in the comparable period of 2023 had
benefited from an income tax refund.
The Group’s Net Debt stood at €521.0mn as of March 31, 2024, down 17.9% compared to December 31,
2023. The Group’s ratio of Net Debt to 12-month Adjusted EBITDA (AL) stood at 0.4x. The Group does not
face any bond maturity until September 2026.
"2024 is off to a good start", stated the Chairman & CEO, Michael Tsamaz. "I am pleased to report solid operating and financial performances as my tenure nears its conclusion. Revenue growth has accelerated significantly, driven mainly by our ICT, international wholesale, and mobile revenues, while we pursued the expansion of our FTTH footprint and data networks, and grew our EBITDA. Since 2010, when I took over as Chairman and CEO, we have achieved major breakthroughs and we have weathered a few major storms. Together, we transformed our organization and built a sustainable digital services provider. I am proud of OTE’s progress over the years, and of its
contribution to the digital transformation of Greece, its society, and its business environment.
“For the rest of 2024 and the years ahead, under the direction of my successor, Kostas Nebis, OTE is well
placed to continue to grow its brand, generate significant cash flow, invest in the country’s infrastructure, and
provide value to its users, partners, associates, and shareholders.”
In 2024, barring unforeseen circumstances, OTE expects to further improve its operational and financial
performances. The ARPU-enhancing initiatives implemented in late 2023 should support mobile revenue
growth and the fixed retail business. OTE should also continue to benefit from the positive macroeconomic
outlook in Greece and the ongoing deployment of the EU Recovery and Resilience Fund, securing further
growth in the ICT segment. This revenue growth, while driven by lower-margin activities, contributes to the
Group’s long-term performance. As a result, OTE expects to continue growing its revenue base in 2024,
despite anticipated pressure on local wholesale revenues and an overall contraction of the fixed market.
In addition, OTE remains committed to continuously enhancing its efficiency and pursue cost-saving
initiatives, notably in the personnel area. These should generate positive momentum and partly offset the
impact of energy headwinds following the expiration of its 2023 power supply contract. For full year 2024,
based on current market dynamics, OTE is confident that it will deliver further growth in operating profit, albeit
at a slower pace than revenue.
OTE is defending its market positions and securing its market share, while leveraging its significant
competitive advance in terms of FTTH infrastructure, 5G coverage, and network performance to drive ongoing
subscriber additions and upgrades. OTE intends to pursue its investment strategy, continuing to benefit from
its best-in-class networks in fixed and mobile and its recognized customer excellence. The expansion of its
FTTH infrastructure ensures that OTE captures an increasing share of fixed broadband subscribers, with
increased loyalty. Similarly, the widely recognized superiority of OTE’s 5G network is the main enabler for the
continuing mobile service revenue growth.
2024 OUTLOOK
For full year 2024, OTE management reiterates its Free Cash Flow (FCF) guidance of approximately €470mn,
impacted by higher cash income tax payments compared to 2023. In 2024, the Group expects CAPEX in the
range of €610mn to €620mn, primarily earmarked for the further deployment of its FTTH infrastructure.
2024 Shareholder Remuneration
OTE intends to distribute approximately 95% of its expected 2024 Free Cash Flow. Total shareholder
remuneration is targeted at approximately €450mn, corresponding to a proposed €297mn cash dividend and
approximately €153mn in share buyback.
The proposed dividend per share stands at €0.71, up 23%compared to 2023. The dividend will be paid out to shareholders on July 10, 2024, subject to approval of the Annual General Meeting of Shareholders to be held on June 28, 2024. Implementation of the Company’s share buyback program, commenced on February 26, 2024, is currently ongoing.
