Hellenic Telecommunications Organization Sa · ATHEX:HTO
Hellenic Telecommunications Organization Sa — Q2 2024 Earnings Presentation
29 slides from Hellenic Telecommunications Organization Sa's earnings presentation, August 2024
Slide 1: OTE Group Q2 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: Financial Review
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Slide 4: Key Developments
4 Key Developments FTTH OTE - NOVA FTTH Gigabit Voucher TV Agreement Wholesale • Approved by EC • Cross-supply of sports channels • Approved by EC • Expected in Q4 2024 • Enhanced Pay-TV services to Greek • Planned volume discounts in the FTTH consumers wholesale market • €200 maximum coupon • Effect
Slide 5: OTE FTTH Rollout and 5G+ Investment Plan
5 OTE FTTH Rollout and 5G+ Investment Plan > € 3bn FTTH Footprint (Homes Passed) >75% end of Q2 2024 by the end of 2024 by the end of 2027 1.46m ~1.8m 3m
Slide 6: Mobile Network Superiority in Greece
6 Mobile Network Superiority in Greece OOKLA: Umlaut Best in Test certification, for 10th consecutive year, COSMOTE Fastest Mobile Network for 8th consecutive year for its mobile internet and voice services in Greece 150.53 67.89 76.39 MEDIAN DOWNLOAD SPEED (MBPS) MEDIAN UPLOAD SPEED (MBPS) MEDIAN LA
Slide 7: Highlights
7 Highlights GROUP GREECE Key developments to drive growth Continuing growth Group Revenues up sharply, Adjusted EBITDA (AL) stable on Romania challenges Q2 ’24 +6.6% REVENUES €326.7m +7.6% REVENUES +3.7% MOBILE SERVICE +1.5% ADJ. EBITDA (AL) ADJ. EBITDA (AL) REVENUES Q2 ’24 €121.2m €156.1m FCF ADJ.
Slide 8: Group Overview
8 Group Overview Q2 2024 6M 2024 OTE Group is the largest telecommunications ROMANIA €910.7m €1,788.3m provider in the Greek market with presence REVENUES (YOY +6.6%) REVENUES (YOY +7.9%) also in Romania. OTE is among the largest listed €156.1m €273.6m companies in the Athens ADJ. CAPEX (YOY -6.4%)
Slide 9: Revenues & Adj. EBITDA (AL)
9 Revenues & Adj. EBITDA (AL) 930 Total Revenues (€m) 881 878 911 3,469 854 3,455 5.1% 9.2% 6.6% 1.1% -2.6% FY 2022 FY 2023 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 yoy change % Adj. EBITDA (AL) (€m) 37.1% 40.0% 36.7% 35.9% 38.3% 39.0% 38.7% 353 341 1,348 327 326 327 1,343 2.8% 1.2% 0.0% -1.8% -1.5% FY 2022 FY
Slide 10: Capex & Cashflow
10 Capex & Cashflow Adjusted Capex (€m) 183 192 167 638 621 156 Q2 2024 610-620 118 18.5% €146m GREECE 17.9% 19.5% 20.8% 20.6% 13.4% 17.1% €11m ROMANIA FY 2022 FY 2023 FY 2024 Guidance Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 As % of sales As % of sales Reported FCF (€m) Q2’24: -15.8% yoy 597 144 127 121 501 10
Slide 11: Shareholder Remuneration Policy
11 Shareholder Remuneration Policy Shareholder Remuneration Policy Dividend at Total Shareholders payout €0.71 up +23% at €450m up +5% 70%-100% FCF distribution through a combination of dividends and share buybacks Starting from 2023, the cash dividend will account for at least 50% of total sharehol
Slide 12: Debt and Liquidity Profile
12 Debt and Liquidity Profile 0.3x 0.5x 0.5x 0.4x 0.3x 1,212 1,191 1,099 1,143 1,089 Net Debt/Adj.EBITDA (AL) 672 635 521 391 457 Net Debt Net Debt/Adj.EBITDA (AL) (519) (464) (568) at €457m at 0.3x (686) (821) Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Gross Debt Cash Net Debt Debt Maturity Profile (€m) (Nominal
Slide 13: Greece
OTE Group Q2 2024 Results Greece
Slide 14: Greece – Financial Overview
14 Greece – Financial Overview Total Revenues (€m) Adj. EBITDA (AL) (€m) 855 846 40.9% 42.9% 39.4% 39.8% 38.6% 3, 340 3,155 3,189 30. 0% 812 812 25. 0% 41.5% 41.6% 2, 840 787 10.3% 20. 0% 1,326 348 15. 0% 7.6% 1,310 322 337 323 327 2, 340 5.0% 10. 0% 1, 840 5. 0% 2.4% 0. 0% -2.2% 0.9% 1.6% 1.5% 1, 3
Slide 15: Greece – Financial Overview
15 Greece – Financial Overview Retail Fixed Revenues (€m) Retail fixed service revenues flat: 933 915 228 228 230 229 228 • Positive momentum in Broadband and TV • Retail fixes services will be supported by: 1.2% 0.0% 0.0% ➢ OTE – NOVA agreement on sport content sharing -3.7% -0.9% ➢ FTTH wholesale a
Slide 16: OTE – Fixed & Broadband KPIs
16 OTE – Fixed & Broadband KPIs OTE Fixed Lines Evolution (000) OTE Broadband lines Evolution (000) 2,387 2,392 2,405 2,406 2,407 2,623 2,615 2,617 2,611 2,602 13 13 4 1 1 2 -2 -8 -6 -9 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Additions Additions OTE BB Penetration on Fixed FMC B2
Slide 17: OTE - FTTH
17 OTE - FTTH FTTH Homes passed (000) Utilization on homes passed by OTE’s infrastructure (%) 1,331 1,375 1,460 1,148 22% 24% 1,051 19% 19% 19% 183 86 110 97 44 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Additions >85% on OTE’s infrastructure FTTH Retail Subscribers (000) Total mark
Slide 18: OTE – COSMOTE TV
18 OTE – COSMOTE TV Q2’24: +6.2% yoy TV Subscribers (000) 647 664 677 687 687 OTE-NOVA: AGREEMENT FOR THE CROSS-SUPPLY OF THEIR SPORTS CHANNELS • Renewal of UEFA Champions League, Europa League and -1 17 13 10 Conference 0 • League TV rights for 2024-2027 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 • UEFA TV righ
Slide 19: OTE – Mobile KPIs
19 OTE – Mobile KPIs Total Subscribers (000) Q2’24: Post Paid +6.9% yoy 7,325 7,317 7,119 7,107 7,189 4,720 4,678 4,436 4,375 4,405 2,682 2,732 2,784 2,606 2,638 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Postpaid Prepaid Avg.Data usage* (GB) 14.2 Q2'24: +28% yoy 12.6 13.2 Another positive “COSMOTE Neo” the 12.0
Slide 20: OTE – Digitalization
20 OTE – Digitalization Smartphone penetration (%) 82% 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 servic
Slide 21: ESG
OTE Group Q2 2024 Results
Slide 22: 2023 Sustainability Commitments - Performance
22 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 onw
Slide 23: Sustainability Strategic Priorities: Commitments 2024 onwards
23 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 onw
Slide 24: Sustainability & ESG Indices, Rankings and Ratings
24 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 25: Romania
OTE Group Q2 2024 Results
Slide 26: Telekom Romania Mobile – Financial Overview
26 Telekom Romania Mobile – Financial Overview Total Revenues (€m) Adj. EBITDA (AL) (€m) 306 12.4% 287 5.9% 78 38 6.9% 6.5% 5.3% 4.2% 69 71 66 67 -0.1% 17 5 5 4 3 0 FY 2022 FY 2023 FY 2022 FY 2023 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Adjusted Capex (€m) Adj. EBITDA (AL) Margin
Slide 27: Telekom Romania Mobile – Financial Overview
27 Telekom Romania Mobile – Financial Overview Mobile Service Revenues (€m) 203 185 46 48 43 39 38 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 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 ➢ Challenging competit
Slide 28: Telekom Romania Mobile – KPIs
28 Telekom Romania Mobile –KPIs Q2'24: Post Paid +4.7% yoy Data Revenues (€m) Total Subscribers (000) 4,063 3,899 3,798 3,661 3,601 20 21 20 20 21 2,200 2,016 1,882 1,729 1,650 1,864 1,883 1,916 1,932 1,951 Q2’24 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q2’23 Q3’23 Q4’23 Q1’24 &# Postpaid Prepaid Data Revenues
Slide 29: Thank you.
Thank you.
Hellenic Telecommunications Organization (OTE Group) — Q2 2024 Earnings Presentation on 6ix