Hellenic Telecommunications Organization S.a Stock Earnings Reports

OTE delivered a solid H1/2026 with adjusted revenue growth of ~8% YoY (excluding the zero-margin wind-down of international wholesale), EBITDA after leases up 3% with a margin of 40.1%, and continued strong cash generation. Key operational highlights: FTTH net additions hit a record 62,000 (687,000 FTTH subscribers, 29% of broadband base), homes passed at 2.2m (target ~2.4m by year-end), fixed wireless access (5G FWA) surpassed 100,000 customers and ~120,000 FWA subscribers in total, and Pay TV revenues grew strongly with modest net additions. Mobile saw record postpaid net adds (62,000), postpaid base +8% YoY, blended ARPU +3%, average data use 21 GB/mo (+20%), 5G coverage >99% and 5G+ ~84%. ICT/system solutions grew strongly (+52% YoY in the quarter) but will face H2 normalization as RRF-funded projects taper; management is building a pipeline for 2027 including international wins. Financial posture: Q2 CapEx €157m (FY guidance ~€600m), free cash flow after leases €150m in Q2; full-year reported FCF expected ~€750m (adjusted €570–580m). Credit: S&P upgraded OTE to A-, the only A-rated company in Greece. Risks/near-term headwinds: phased exit of international transit (impact ~€60m in the quarter, continuing into 2026/early 2027), potential increased wholesale pressure from a possible PPC–Vodafone JV (management flags incremental wholesale downside but uncertain magnitude), and competitive threats in underserved areas (Starlink) that OTE says are being mitigated via FWA and UFBB expansion. Management reiterated confidence in achieving 3% EBITDA growth for the full year driven by top-line resilience, cost savings (voluntary exit schemes), and early benefits from digital/AI initiatives.