Message from Miguel Almeida, CEO Building Portugal's Digital Future
In the second quarter of 2025, NOS strengthened its position as a driving force behind Portugal's digital transformation, through a series of initiatives that combine technology, innovation, and a firm commitment to the country's economic, social, and environmental development.
With an investment of €228 million in the first half of the year, NOS continues to demonstrate its commitment to deliver the best mobile and fixed network infrastructure and the most advanced communications services, as evidenced by our clear leadership in providing "5G Standalone" technology. At the core of this investment is a focus on innovation. For the second year in a row, NOS was recognised by the Direção Geral de Estatísticas da Educação e Ciência (an official education and science statistics office in Portugal) as the company that invests the most in R&D - a distinction that reinforces our role as a catalyst for the country's digital transformation.
As part of NOS's evolution into a broader digital enterprise, and following the acquisition of Claranet Portugal in March, this quarter we launched CyberInspect - a new business unit that democratises access to cybersecurity, enabling any company to identify vulnerabilities and reduce risks.
With a unique portfolio of products and services and a superior customer experience, and despite a challenging market environment, NOS maintained its revenue growth trajectory, posting a 3% increase in the second quarter.
As part of its Transformation Programme, NOS continues to improve operational efficiency - particularly through process reengineering supported by disruptive technologies such as generative Artificial Intelligence, which has driven productivity gains and cost reductions across all areas of business. The success of this programme, which is still far from its full potential, has enabled an expansion of the operating margin, which grew by 1.2 pp. this quarter. Combined with revenue growth, this margin expansion led to a 6% increase in EBITDA and a 35% rise in Operating Cash Flow.
Our strong focus in new growth avenues, combined with growing operational efficiency in the telecommunications business, makes us face the company's future with confidence, despite an increasingly challenging market context. NOS remains firmly committed to reinforce its significance and unique role in Portugal's digital transition.
Consolidated revenues increased by 3.2% to 458.2 million euros, supported by solid performance in the Telecommunications business.
Operational efficiency and ongoing transformation programs enable costs to grow at a slower pace than revenues, resulting in a 5.9% EBITDA growth and margin expansion of 1.2pp to 44.3%.
CAPEX continues its decreasing trend, declining by -1.9% overall, reflecting the completion of most investments in 5G.
Sustained growth in operational free cash flow with EBITDA AL minus CAPEX increasing to 77.4 million euros.
Consolidated Financial Statements
The Consolidated Financial Statements for 2Q25 were subject to a limited review.
Considering the completion of the acquisition of Claranet Portugal, as announced on March 17, 2025 ("link to the announcement"), the business units have been renamed to "Telecommunications," "IT," and "Audiovisuals and Cinemas." Additionally, the results and capex data for the periods between 2Q24 and 4Q24 have been restated to ensure comparability with the 2025 figures, reflecting the effects of the Claranet Portugal acquisition from April 2025 onwards.
Table 1.
Profit and Loss Statement (1)
(Millions of Euros)
2Q24
2Q25
2Q25 / 2Q24
1H24
1H25
1H25 / 1H24
Operating Revenue | 444.2 | 458.2 | 3.2% | 847.5 | 879.6 | 3.8% |
Operating costs excluding D&A | (252.7) | (255.3) | 1.1% | (471.5) | (484.4) | 2.7% |
EBITDA | 191.5 | 202.9 | 5.9% | 376.0 | 395.3 | 5.1% |
EBITDA margin | 43.1% | 44.3% | 1.2pp | 44.4% | 44.9% | 0.6pp |
Operating costs excluding D&A AL | (284.8) | (289.1) | 1.5% | (532.8) | (549.1) | 3.1% |
EBITDA AL (2) | 159.4 | 169.1 | 6.1% | 314.7 | 330.5 | 5.0% |
EBITDA AL margin | 35.9% | 36.9% | 1.0pp | 37.1% | 37.6% | 0.4pp |
Leasings | (32.2) | (33.8) | 5.2% | (61.3) | (64.8) | 5.7% |
Depreciation and Amortization | (128.6) | (121.7) | (5.4%) | (251.0) | (245.4) | (2.2%) |
(Other Expenses) / Income | 40.2 | (9.0) | (122.5%) | 71.5 | (5.1) | (107.1%) |
Operating Profit (EBIT) (3) | 103.1 | 72.2 | (30.0%) | 196.5 | 144.8 | (26.3%) |
Share of profits (losses) of associates and joint ventures | 2.0 | 2.4 | 20.2% | 4.7 | 11.7 | 150.7% |
(Financial Expenses) / Income | (20.0) | (16.7) | (16.6%) | (40.7) | (32.7) | (19.7%) |
Leases Financial Expenses | (2.7) | (2.8) | 3.2% | (11.0) | (5.8) | (47.5%) |
Funding & Other Financial Expenses | (17.3) | (13.9) | (19.7%) | (29.7) | (26.9) | (9.5%) |
Income Before Income Taxes | 85.1 | 57.9 | (32.0%) | 160.5 | 123.9 | (22.8%) |
Income Taxes | (4.7) | 0.2 | (103.7%) | (12.2) | (6.8) | (44.2%) |
Non-Controlling Interests | (0.1) | (0.3) | 222.0% | (0.1) | (0.3) | 232.4% |
Net income | 80.4 | 57.8 | (28.1%) | 148.2 | 116.8 | (21.2%) |
Net income excluding extraordinary non-recurring effects(4) | 49.5 | 57.4 | 16.0% | 95.1 | 112.5 | 18.3% |
The values presented from Q2 2024 to Q4 2024 have been restated to ensure comparability with the 2025 data, reflecting the effects of the acquisition of Claranet Portugal from April 2025 onwards
EBITDA AL = Operating Result + Depreciation, Amortization, and Impairment Losses + Integration Costs + Losses / (Gains) on Asset Disposals + Other Non-Recurrent Costs / (Gains) after Leases
EBIT = Net profit before financial results and taxes.
Excludes extraordinary items resulting from tower sale and non-recurring gains related to activity fees.
Table 2.
Profit and Loss Statement - Telco
(Millions of Euros)
2Q24
2Q25 2Q25 / 2Q24 1H24
1H25 1H25 / 1H24
Revenue | 383.3 | 392.3 | 2.3% | 759.1 | 781.9 | 3.0% |
Consumer Revenue | 282.1 | 281.3 | (0.3%) | 559.6 | 563.7 | 0.7% |
Business Revenue | 101.2 | 111.0 | 9.6% | 199.4 | 218.1 | 9.4% |
Operating costs excluding D&A | (206.0) | (207.5) | 0.8% | (409.6) | (417.6) | 2.0% |
EBITDA | 177.3 | 184.7 | 4.2% | 349.5 | 364.3 | 4.2% |
EBITDA margin | 46.3% | 47.1% | 0.8pp | 46.0% | 46.6% | 0.6pp |
Operating costs excluding D&A AL | (234.2) | (237.0) | 1.2% | (464.2) | (475.0) | 2.3% |
EBITDA AL | 149.1 | 155.3 | 4.2% | 294.9 | 306.9 | 4.1% |
EBITDA AL margin | 38.9% | 39.6% | 0.7pp | 38.8% | 39.3% | 0.4pp |
Table 3.
Profit and Loss Statement - IT (1)
(Millions of Euros)
2Q24
2Q25 2Q25 / 2Q24 1H24
1H25 1H25 / 1H24
Revenue (2) | 49.7 | 49.3 | (0.8%) | 62.9 | 66.4 | 5.6% |
Service revenue | 30.9 | 34.2 | 10.4% | 43.7 | 49.0 | 12.2% |
Equipment & licences revenue | 18.7 | 15.1 | (19.2%) | 19.2 | 17.4 | (9.4%) |
Operating costs excluding D&A | (44.2) | (42.8) | (3.2%) | (55.7) | (58.1) | 4.3% |
EBITDA | 5.5 | 6.5 | 18.8% | 7.2 | 8.4 | 16.1% |
EBITDA margin | 11.0% | 13.2% | 2.2pp | 11.5% | 12.6% | 1.1pp |
Operating costs excluding D&A AL | (45.5) | (44.4) | (2.5%) | (57.3) | (59.9) | 4.6% |
EBITDA AL | 4.1 | 4.9 | 18.1% | 5.6 | 6.5 | 16.3% |
EBITDA AL margin | 8.3% | 9.9% | 1.6pp | 0.1pp | 9.8% | 0.9pp |
The values presented from Q2 2024 to Q4 2024 have been restated to ensure comparability with the 2025 data, reflecting the effects of the acquisition of Claranet Portugal from April 2025 onwards
In accordance with IFRS 15, the revenue from contracts where NOS and Claranet act as an Agent (and not as a Principal) should be recognized on a net basis in the consolidated financial
Table 4.
Profit and Loss Statement - Audiovisuals & Cinema
(Millions of Euros)
2Q24
2Q25 2Q25 / 2Q24 1H24
1H25 1H25 / 1H24
Revenue | 19.7 | 25.8 | 31.0% | 42.4 | 48.9 | 15.2% |
Operating costs excluding D&A | (10.9) | (14.1) | 28.8% | (23.1) | (26.3) | 0.1 |
EBITDA | 8.7 | 11.7 | 33.7% | 19.3 | 22.6 | 17.0% |
EBITDA margin | 44.4% | 45.3% | 0.9pp | 45.5% | 46.2% | 0.7pp |
Operating costs excluding D&A AL | (13.5) | (16.9) | 25.0% | (28.2) | (31.8) | 12.9% |
EBITDA AL | 6.2 | 8.9 | 44.2% | 14.3 | 17.1 | 19.7% |
EBITDA AL margin | 31.3% | 34.5% | 3.1pp | 33.7% | 35.0% | 1.3pp |
Consolidated revenue reached 458.2 million euros in 2Q25, representing a 3.2% increase compared to the same period last year. This performance was driven by the consistency of operations in the Telecommunications business unit, with notable growth in the corporate sector and a positive contribution from the Cinema and Audiovisuals business. In the IT business unit, revenue from Services (higher-margin) grew by 10%, despite a 19% decline in Equipment and Licenses revenue (lower-margin and more volatile), resulting in a 0.8% decrease in the IT business unit.
The Telecommunications business unit maintained its growth trajectory, with revenues rising by 2.3% to 392.3 million euros, supported by the strong performance of the business segment, which offset pressures in the consumer segment.
In 2Q25, NOS achieved solid growth of 57.8 thousand RGUs, with 43.5 thousand RGUs in the consumer segment, mainly driven by the increase in postpaid mobile RGUs.
In the Consumer segment, which includes services provided to families and individuals, revenues totalled
281.3 million euros, a 0.3% decrease compared to the same period last year. The lack of price adjustments aligned with inflation and pressure on the customer base due to the new competitive environment impacted ARPU in this segment, leading to a reduction in revenue.
Strong momentum in the corporate segment was supported by increased project and resale activities, with revenues rising by 9.6% to 111.0 million euros, accounting for approximately 28% of total Telecommunications revenues. Revenue growth in the Business segment was fuelled by good performance in the Corporate sector, driven by higher resale of services and integrated solutions. Excluding resale revenues, the organic growth of the Business segment was 6.0%.
In the IT business unit, which includes IT revenue from NOS and Claranet Portugal, the higher-value, higher-margin service segment performed strongly (+10% to 34.2 million euros), while the equipment and licenses resale segment, which has some volatility, declined by 19%. This reduction in equipment and licenses revenue resulted in an 0.8% decrease in total IT revenues.
The Cinema and Audiovisuals business recorded significant growth compared to 2Q24, with revenues increasing by 31.0% to 25.8 million euros, driven by a strong slate of blockbusters and the Easter holiday period, in contrast to 2Q24, which was hampered by postponed releases and an earlier Easter.
In the film exhibition segment, ticket sales increased by 43.8% year-over-year, fueled by major releases such as Lilo & Stitch, Minecraft, and Mission: Impossible. In the Audiovisuals segment, revenues grew by 31.0%, benefiting from the successful portfolio distributed by NOS Audiovisuais, notably Lilo & Stitch, which premiered at the end of 2Q25 and reached the top spot in ticket sales in the first half of 2025.
Table 5.
Operating Indicators 2Q24 2Q25 2Q25 / 2Q24 1H24 1H25 1H25 / 1H24
Cinema
Revenue per Ticket - box office (Euros) | 6.0 | 6.3 | 4.1% | 6.1 | 6.3 | 3.2% |
Tickets Sold - NOS ('000) | 1,322.8 | 1,901.8 | 43.8% | 3,045.4 | 3,552.2 | 16.6% |
Tickets Sold - Total Portuguese Market (1) ('000) | 2,045.5 | 2,889.6 | 41.3% | 4,742.3 | 5,530.0 | 16.6% |
Screens (units) | 214 | 213 | (0.5%) | 214 | 213 | (0.5%) |
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