The OTE Group has reported continued growth in the Greek market, showing an 8% increase in revenue and a 1.5% rise in adjusted EBITDA for the second quarter of 2024.
The company plans to return about 95% of its estimated free cash flow to shareholders, with approximately 450 million euros allocated for this purpose. This includes a 297 million euro dividend and a 153 million euro share buyback program.
The approved dividend of 0.71 euro per share marks a 23% increase from 2023, with a total payment of 0.7216 euro per share made on July 10, 2024, reflecting additional amounts related to shares on the ex-dividend date. The share buyback program, which started on Feb. 26, 2024, has seen 48% of the allocated funds utilized so far.
In the end quarter of this year, OTE’s consolidated revenue grew by 6.6% to 910.7 million euros, driven by strong performance in Greece, where revenue increased by 7.6%. This growth was supported by robust results in mobile, television, broadband, and ICT services.
However, in Romania, revenue fell by 3.8% due to competitive pressures and reduced mobile termination rates.
Adjusted EBITDA remained stable at 326.7 million euros, with gains in Greece offset by declines in Romania.
Capital expenditures were 156.1 million euros, down 6.4% from the previous year, with ongoing investments in Greece’s FTTH network and Romanian mobile services. Free cash flow after leases was 121.2 million euros for Q2 2024, a 15.8% decrease year-over-year.
The company continues to target its free cash flow goals for this year. As of June 30, 2024, net debt was 457.0 million euros, representing 0.3 times adjusted EBITDA, with the next major bond repayment scheduled for Sep. 2026.
The OTE group aims to enhance its technological leadership in Greece through its FTTH and 5G infrastructure.
Recent developments include the Gigabit voucher to boost FTTH adoption, a content-sharing agreement with NOVA to strengthen TV services and fight piracy, and the European Commission’s approval of volume discounts in the wholesale FTTH market, further advancing fiber optic services and market growth.