OTE – Revenue increase by 3.5% in Greece in the quarter

OTE announced a 1.8% increase in Group revenues for the third quarter of 2021, thanks to further growth in Greece, while the Adjusted EBITDA (AL) of the Group increased by 3.2%.

Positive performance continues in Greece, where revenue growth reached 3.5%. In terms of fixed retail revenues, there was an increase of 1.8%, due to the strong growth in broadband services and the positive trends in television. Also, a significant increase of 8.2% was recorded in revenues from mobile services, mainly due to the recovery in roaming revenues.

The increase in Custom EBITDA amounted to 5%. The strengthening of the main indicators (KPIs) and the operating trends continues, while the demand for faster broadband speeds is increasing. Fiber optic subscription services increased by 24% while the FTTH network continues to grow, as it was available to 479 thousand households at the end of September.

Romania’s mobile was affected by extraordinary adjustments last year, while recording improving profitability trends. In addition, the sale of Telekom Romania (fixed) was successfully completed. The extraordinary remuneration of shareholders amounted to 174 million euros and the extraordinary dividend or approximately € 0.25 / share amounted to 113 million euros, while the repurchase program of own shares was formed at 61 million euros

Tsamaz: “Everything higher than last year”

In a message, the President and CEO of OTE Group Michalis Tsamaz noted the following:

“Thanks to our continued strong performance in Greece, the OTE Group recorded a strong third quarter. Group revenues, EBITDA and EBITDA margin, are all higher than last year. Revenues in Greece were boosted by growing demand for higher speeds and more data, both mobile and fixed, as well as by the recovery in tourism that led to a significant improvement in roaming revenues. In Romania, we completed the sale of our activities in the fixed and acquired 100% in the mobile, whose performance is in the right direction. “Our strong cash flows since the beginning of the year, allow us to implement smoothly, both the policy of remuneration to shareholders, and our investments in state-of-the-art infrastructure, for the benefit of our customers and the country.”

Prospects

Thanks to its state-of-the-art networks, OTE provides even faster speeds, quality and reliability to its customers, both retail and wholesale. The dynamic development of FTTH and 5G networks enables it to offer even better services to customers and to continue to grow. Following the lifting of travel restrictions due to COVID 19 and the easing of travel restrictions, OTE estimates that it will achieve a substantial recovery of revenue and profitability in 2021.

The gradual implementation of the Recovery and Sustainability Plan in Greece, amounting to € 30.5 billion, is estimated to contribute to the country’s economic development in the coming years. OTE has the know-how to enhance the digitalization of the country and to offer the technological background that will accelerate its future development. As the demand for wider access to high speed connections increases, OTE intends to continue its investments in fiber optic home networks (FTTH) in the coming years. These investments will contribute to the sustainable development of OTE, in the medium and long term.

For 2021, the adjusted investments are estimated to slightly exceed € 550 million, while the Management continues to expect adjusted free cash flows of approximately € 575 million. Free cash flows will amount to approximately € 480 million, making up the total Remuneration to Shareholders for 2021. In addition, the Board of Directors approved an extraordinary remuneration to shareholders of € 174 million, which is a distribution of the net amount from sale of the stake held by OTE to Telekom Romania (Fixed).