Hellenic Telecommunications Organization Sa · ATHEX:HTO
Hellenic Telecommunications Organization Sa — OTE Group — Q1 2024 Earnings Presentation
29 slides from Hellenic Telecommunications Organization Sa's earnings presentation, 2024
Slide 1: OTE Group Q1 2024 Results
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Slide 2: Disclaimer
2 Disclaimer This presentation is provided to persons who are entitled to receive it in accordance with the laws and In addition to figures prepared in accordance with IFRS, OTE also presents alternative performance measures, regulations of appropriate jurisdictions. This presentation is provided for
Slide 3: Strategy: The 7 Pillars of our Strategic Plan
3 Strategy: The 7 Pillars of our Strategic Plan TECHNOLOGY BEST CUSTOMER REVENUE LEAD IN DIGITALIZATION, GROWTH MINDSET SUPERIORITY EXPERIENCE TRANSFORMATION CORE BUSINESS SIMPLIFICATION & AND CULTURE • Accelerate FTTH COST OPTIMIZATION • Introduction and evaluation of Optical Fiber • Digital Transf
Slide 4: Digital Transformation
4 Digital Transformation Our goal: to be the leader for Digital Transformation in Greece and a role–model in Europe with superior Customer Experience & Operational Efficiency DIGITAL @CUSTOMER DIGITAL @NETWORK DIGITAL @COMPANY Digital Interplay Simplification Internal Interactions • One App primary tou
Slide 5: 2023 Sustainability Commitments - Performance
5 2023 Sustainability Commitments - Performance CLIMATE NEUTRALITY 2023 PERFORMANCE OTE Group contributes to DT Group Climate Targets: • Climate neutral in terms of own emissions (Scope 1&2) by 2025, including up to 95% reduction by 2025, compared to 2017 • 100% Renewable electricity, from 2021 onwa
Slide 6: Sustainability Strategic Priorities: Commitments 2024 onwards
6 Sustainability Strategic Priorities: Commitments 2024 onwards CLIMATE NEUTRALITY OTE Group1 contributes to DT Group Climate Targets: • Climate neutral in terms of own emissions (Scope 1&2) by 2025, including up to 95% reduction by 2025, compared to 2017 • 100% Renewable electricity, from 2021 onwa
Slide 7: Sustainability & ESG Indices, Rankings and Ratings
7 Sustainability & ESG Indices, Rankings and Ratings The OTE Group responds to sustainability & ESG analysts’ questions and assessments. OTE is included in several national and international sustainability/ESG indices, rankings and ratings. OTE, since 2008, meets the requirements and is Since 2018,
Slide 8: Financial Review
pappbeetettete: iF Rit Financial Review OTE Group Qi 2024 Results
Slide 9: Highlights
9 Highlights GROUP GREECE A solid start to the year, ongoing positive momentum in Greece Solid operating and financial performance Q1 ’24 +9.2% +1.2% +10.3% +1.5% 39.8% REVENUES ADJ. EBITDA (AL) REVENUES ADJ. EBITDA (AL) MARGIN Q1 ’24 €127m €117.5m FTTH subscribers +3.3% mobile service FTTH network
Slide 10: Group Overview
10 Group Overview OTE Group is the largest Q1 2024 telecommunications ROMANIA provider in the Greek market with presence €877.6m €117.5m also in Romania. OTE is among the largest listed REVENUES (YOY +9.2%) ADJ. CAPEX (YOY +47.1%) companies in the Athens Stock Exchange. €326.0m €127.1m GREECE ADJ. E
Slide 11: Revenues & Adj. EBITDA (AL)
11 Revenues & Adj. EBITDA (AL) 930 Total Revenues (€m) 881 878 3,455 3,469 804 854 5.1% 9.2% 1.1% -2.0% -2.6% FY 2022 FY 2023 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 yoy change % Adj. EBITDA (AL) (€m) 37.1% 40.1% 40.0% 36.7% 38.3% 39.0% 38.7% 353 341 1,348 322 327 326 1,343 2.8% 1.2% -1.0% -1.8% -1.5% FY 2022
Slide 12: Capex
12 Capex Adjusted Capex (€m) 192 183 167 638 621 610-620 118 18.5% 80 17.9% 19.5% 20.8% 20.6% 13.4% 9.9% FY 2022 FY 2023 FY 2024 Guidance Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 As % of sales As % of sales Per Country (€m) Q1 2024 • FTTH footprint at 1.375 million homes and businesses as of March 31, 2024 • F
Slide 13: Cashflow
13 Cashflow Adjusted FCF (€mn) Q1’24: -43.2% yoy 1,293 1,165 309 315 308 234 248 116 130 654 229 544 51 148 (80) (638) (621) (118) (167) (183) (192) FY 2022 FY 2023 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Adjusted Capex Adj. Net operating CF Adj.FCF 226 Reported FCF (€m) Q1’24: -43.8% yoy 597 144 127 501 104 ~
Slide 14: Shareholder Remuneration Policy
14 Shareholder Remuneration Policy Shareholder Remuneration Policy 70%-100% Proposed Dividend Total Shareholders payout at €0.71 up +23% at €450m up +5% FCF distribution through a combination of dividends and share buybacks 70%-100% Starting from 2023, the cash dividend will account for at least 50%
Slide 15: Debt and Liquidity Profile
15 Debt and Liquidity Profile 0.4x 0.3x 0.5x 0.5x 0.4x 1,291 1,212 1,099 1,191 1,089 506 672 635 521 Net Debt/EBITDA 391 Net Debt Net Debt/EBITDA (519) (464) (568) at €521m (AL) at 0.4x (784) (821) Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Gross Debt Cash Net Debt Debt Maturity Profile (€m) (Nominal amounts) S&P
Slide 16: Greece
OTE Group Qi 2024 Results Greece
Slide 17: Greece – Financial Overview
17 Greece – Financial Overview Total Revenues (€m) Adj. EBITDA (AL) (€m) 855 43.3% 40.9% 42.9% 39.4% 39.8% 3, 340 3,155 3,189 30. 0% 812 812 25. 0% 41.5% 41.6% 2, 840 787 10.3% 20. 0% 736 1,326 348 1,310 322 337 323 2, 340 15. 0% 5.0% 319 10. 0% 1, 840 5. 0% 2.4% -0.9% -2.2% 1.6% 0. 0% 0.9% 1.6% 1.5
Slide 18: Greece – Financial Overview
18 Greece – Financial Overview Retail Fixed Revenues (€m) 933 915 Retail fixed service revenues stable: 229 228 228 230 229 • Solid Broadband performance and healthy TV operations were 1.2% offset by contracting legacy services 0.0% -3.7% -0.9% • The expected launch of FTTH state subsidy coupon shoul
Slide 19: Greece – Fixed & Broadband KPIs
19 Greece – Fixed & Broadband KPIs OTE Fixed Lines Evolution (000) OTE Broadband lines Evolution (000) 2,342 2,346 2,359 2,359 2,333 2,701 2,699 2,691 2,693 2,686 15 13 9 4 0 2 0 (3) (6) (8) Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Additions Additions OTE BB Penetration on Fixed F
Slide 20: Greece – Fiber KPIs
20 Greece – Fiber KPIs Fiber Subscribers (000) 48% of subs on 100Mbps or more Fiber Penetration (on Broadband) 1,565 1,546 1,515 1,526 1,489 64% 65% 65% 66% 66% 41 25 21 Q1'23 Q2'23 Q3'23 Q4’23 Q1’24 19 11 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Additions FTTH Retail Subscribers (000) FTTH Homes Passed 287 25
Slide 21: Greece – COSMOTE TV
21 Greece – COSMOTE TV TV Subscribers (000) 688 Q1’24: +6.0% yoy 665 678 649 648 •Renewal of UEFA Champions League, Europa League and Conference League TV rights for 2024-2027 •UEFA TV rights for 2021-2024 •Broadcasting rights of Key Greek football teams for 2023- 2025 17 •8/14 Greek Superleague foo
Slide 22: Greece – Mobile KPIs
22 Greece – Mobile KPIs Total Subscribers (000) Q1’24: Post Paid +6.3% yoy 7,345 7,373 7,366 7,168 7,157 4,348 4,322 4,279 4,039 3,971 3,129 3,187 2,997 3,051 +5.5% 3,086 +6.1% +6.3% +5.3% Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Postpaid Prepaid Avg.Data usage* (GB) 14.2 Q1'24: +39% yoy 12.6 12.0 Another posi
Slide 23: Greece – Digitalization
23 Greece – Digitalization Smartphone penetration (%) 80% 81% 81% 81% 81% Mobile data bundle Remote Wi-Fi router subscription renewal, bill management, parental control payment, and ordering features and management of +1pp functionality for additional short-digit premium OTE services value-added ser
Slide 24: Mobile Network Superiority in Greece
24 Mobile Network Superiority in Greece OOKLA: Umlaut Best in Test certification, for 9th consecutive time, COSMOTE Fastest Mobile Network for 7th consecutive year for its mobile internet and voice services in Greece 116.59 56.08 61.28 MEDIAN DOWNLOAD SPEED (MBPS) MEDIAN UPLOAD SPEED (MBPS) MEDIAN LA
Slide 25: Romania
OTE Group Q1 2024 Results
Slide 26: Romania – Financial Overview
26 Romania – Financial Overview Total Revenues (€m) Adj. EBITDA (AL) (€m) 306 12.4% 287 5.9% 78 38 5.1% 6.9% 6.5% 5.3% 4.2% 69 69 71 66 17 3 5 5 4 3 FY 2022 FY 2023 FY 2022 FY 2023 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Adjusted Capex (€m) Adj. EBITDA (AL) Margin % 40 11 38 10 1
Slide 27: Romania – Financial Overview
27 Romania – Financial Overview Mobile Service Revenues (€m) 203 185 48 46 48 43 39 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 FY 2022 FY 2023 • Ongoing impact by mobile termination rate (MTR) cuts, an additional 50% reduction has been in place since the beginning of 2024 • Mobile service revenues were impacted
Slide 28: Romania – Mobile KPIs
28 Romania – Mobile KPIs Q1'24: Post Paid +4.0% yoy Data Revenues (€m) Total Subscribers (000) 4,062 4,063 3,899 3,798 3,661 20 20 21 20 20 2,205 2,200 2,016 1,882 1,729 1,857 1,864 1,883 1,916 1,932 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q1'23 Q2’23 Q3’23 Q4’23 Q1’24 &# Postpaid Prepaid Data Revenues as % o
Slide 29: Thank you.
Thank you.