Hellenic Telecommunications Organization SA
ATHEX:HTO
Hellenic Telecommunications Organization SA
In the bustling world of communications and technology, Hellenic Telecommunications Organization SA, often known as OTE, stands as a pivotal player in Greece. Established in 1949, OTE has evolved from a traditional telephone service provider to a modern communications giant. At the heart of its operations is the delivery of integrated telecom solutions, ranging from fixed-line telephony services to mobile communication, broadband internet, and subscription-based television. Throughout its journey, OTE has embraced the digital transformation wave, constantly innovating and expanding its suite of services. It has successfully capitalized on its robust infrastructure and technological expertise to cater to both residential and business clients across diverse needs.
Financially, OTE generates its revenue through a well-diversified portfolio. A significant chunk comes from its mobile segment, under the Cosmote brand, which provides a variety of voice and data packages tailored for individual and corporate users. Additionally, OTE's fixed-line segment, although mature, still contributes substantially as it transitions customers to fiber-optic and digital services. The broadband and television sectors have shown consistent growth, tapping into the increasing demand for reliable connectivity and high-quality entertainment content. With a strategic partnership with Deutsche Telekom, which owns a large stake in the company, OTE benefits from synergies that bolster its competitive position, allowing it to maintain a strong financial footing and continue its quest for innovation in the Greek and Southeast European markets.
In the bustling world of communications and technology, Hellenic Telecommunications Organization SA, often known as OTE, stands as a pivotal player in Greece. Established in 1949, OTE has evolved from a traditional telephone service provider to a modern communications giant. At the heart of its operations is the delivery of integrated telecom solutions, ranging from fixed-line telephony services to mobile communication, broadband internet, and subscription-based television. Throughout its journey, OTE has embraced the digital transformation wave, constantly innovating and expanding its suite of services. It has successfully capitalized on its robust infrastructure and technological expertise to cater to both residential and business clients across diverse needs.
Financially, OTE generates its revenue through a well-diversified portfolio. A significant chunk comes from its mobile segment, under the Cosmote brand, which provides a variety of voice and data packages tailored for individual and corporate users. Additionally, OTE's fixed-line segment, although mature, still contributes substantially as it transitions customers to fiber-optic and digital services. The broadband and television sectors have shown consistent growth, tapping into the increasing demand for reliable connectivity and high-quality entertainment content. With a strategic partnership with Deutsche Telekom, which owns a large stake in the company, OTE benefits from synergies that bolster its competitive position, allowing it to maintain a strong financial footing and continue its quest for innovation in the Greek and Southeast European markets.
Romania Exit: OTE completed its exit from the Romanian market, strengthening sustainable free cash flow and leading to a EUR 40 million extraordinary dividend.
Revenue Growth: Greece revenue grew by 5% in Q3, driven by strong performance in Mobile, TV, broadband, and ICT segments.
EBITDA and Margins: EBITDA rose 2% in the quarter, with an EBITDA margin of 41%, down 120 basis points year-over-year due to a higher mix of lower-margin revenue.
FTTH Momentum: FTTH net additions accelerated, with 38,000 new customers in the quarter and total FTTH customers now at 509,000, representing 22% of the broadband base.
Guidance Upgrades: Free cash flow guidance for 2025 raised to EUR 530 million, reflecting only Greek operations after the Romanian disposal.
CapEx Commitment: Annual CapEx is expected to remain around EUR 600 million for the coming years, covering continued FTTH and FWA rollout.
Mobile Pricing: OTE is implementing a 2.6% inflation-linked price increase for postpaid mobile customers, combined with added value offers.
ICT & TV Strength: ICT revenues grew nearly 38% and TV revenues by almost 17%, both contributing to overall growth.
