NOS, S.G.P.S., S.A. (ZONNF) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, everyone. Welcome to NOSH first quarter and 2026 results conference call. Our CFO, Luís, will guide you through a brief presentation and then we have the executive team in the room who will be happy to take your questions after the presentation. Over to you, Luís. Thank you, Pedro. Good morning to all and welcome to NOSH first quarter conference call. We will begin, as usual, with the main highlights of this first quarter. revenue growth driven by strong IT expansion and solid audiovisuals and cinema performance, more than offsetting competitive pressure in telco. A bit of performance reflects the disciplined cost management and structurally lower capex delivering health-free cash flow generation. And the balance sheet remains strong with a 1.4x leverage ratio and a credit rating upgrade to BBB by S&P, reflecting a stable financial outlook. A quick overview on our main KPIs. In this first quarter, consolidated revenues increased by 1.9% to 460 million and EBITDA rose 3.1%. This solid EBITDA performance, along with a CAPEX reduction of 5%, led to an improved EBITDA IL-CAPEX of 84 million, a growth of 18%. Recurring free cash flow, Excluding extraordinary items grew 22% to almost $30 million, and recurring net income increased 7.9% to $60 million, reflecting a solid operational performance and our GenAI-driven efficiency program. As usual, we will discuss each of these metrics in more detail throughout the presentation. As said, NOS credit rating has been upgraded by S&P to BBB with a stable outlook. S&P Rational for the upgrade highlights three key points. NOS robust operating performance and cost optimization program. That NOS is well positioned to face increased competitive dynamics with modern and well-maintained networks. And that declining fiber and...