Hellenic Telecommunications Organization (HTO) investor relations material

Executive summary

• Achieved strong financial and operational performance in Q2 and H1 2026, with revenues up 2.5% to €1,715.2m and adjusted EBITDA (AL) up 3%, advancing strategic priorities and digital transformation.

• S&P Global Ratings upgraded credit rating to A-, the only A-rated company in Greece, reflecting financial resilience and stability.

• Transformation initiatives, including AI adoption and digitalization, are driving efficiency, cost reductions, and customer experience improvements.

• Net profit attributable to owners rose 12.2% to €145.0m in Q2 and 0.8% to €283.2m in H1; EPS up 15% in Q2 and 3.2% in H1.

• Free cash flow (AL) declined due to tax timing but is expected to normalize in H2 2026.

Financial highlights

• Q2 2026 revenues were €855.8m (up 0.1% y-o-y); H1 2026 revenues at €1,715.2m (up 2.5% y-o-y).

• Adjusted EBITDA (AL) for Q2 2026 was €343.3m (+3.0% y-o-y), margin improved to 40.1%.

• Capex for Q2 2026 was €156.9m, down 7.7% year-over-year; full-year Capex expected at €600m.

• Free cash flow (AL) for Q2 2026 was €149.6m, with full-year guidance at €750m (underlying €570–580m).

• Net debt reduced by 9.8% to €405.3m; cash and cash equivalents up 15.8% to €762.3m.

Outlook and guidance

• Confident in achieving ~3% adjusted EBITDA (AL) growth for 2026, supported by top-line performance, cost savings, and digitalization.

• Free cash flow (AL) guidance maintained at ~€750m, with trends expected to normalize in H2.

• Capex for 2026 expected at ~€600m, focused on FTTH and 5G rollout.

• Shareholder payout for 2026 set at €532m, with a new policy targeting 70-100% of FCF distributed via dividends and buybacks.

• Service revenues expected to grow, led by FTTH, FWA, TV, and 5G expansion.