Hellenic Telecommunications Organization S.A.

Ladies and gentlemen, thank you for standing by. I am Gaili, your chorus call operator. Welcome and thank you for joining the EOTech conference call and live webcast to present and discuss the third quarter and nine months 2025 financial results. All participants will be in listen-only mode and the conference is being recorded. The presentation will be followed by a question and answer session. Should anyone need assistance during the conference call, you may signal an operator by pressing star and zero on your telephone. At this time, I would like to turn the conference over to Mr. Kostas Nebis, CEO of Tech Group, Mr. Babis Mazarakis, Chief Financial Officer, and Mr. Panagiotis Gavrilidis, Chief Marketing Officer, Consumer Segment of Tech Group. Mr. Nebis, you may proceed.

Thank you, and good morning or good afternoon, everyone, and thank you for joining us today to review our third quarter results. I would like to start with a recent exit from the Romanian market. We are very pleased to have successfully completed a key milestone that will lead to a substantial improvement in our annual cash flow and enhanced shareholder value. In line with our commitment, we have adjusted our shareholder remuneration following the completion of this transaction by distributing an extraordinary dividend. Before reviewing the quarterly performance, I would also like to highlight a recent agreement to expand the ultra-fast broadband coverage in the remaining clods of rural and semi-rural areas across Greece through a subsidized project covering a further 480,000 homes and businesses. This will further solidify our leadership in the market by connecting even more people to fiber speed networks. This initiative underscores OTE's commitment to providing to as many households and businesses as possible the fastest, broadest and most reliable gigabit connectivity services driving Greece's digitization and transformation going forward. Turning to our quarterly performance now, I would like to stress, above all, the acceleration of the recovery in our fixed retail service revenues that is supporting our overall growth in both revenues and profitability. The performance of our fixed retail services is accelerating, building on last quarter's momentum. This growth was driven by the increasing adoption of FTTH services, supported by the growing demand, voucher initiatives, and our expanding network availability. We continue to lead with Greece's largest fiber network and further enhance our offerings to the customer premises. Our FTTH footprint is growing significantly, enabling more connections as we continue to record strong customer additions. The newly adopted regulatory framework for stop selling FTTC in FTTH already connected buildings will further boost the transition to fiber connection, further accelerating the monetization of our fiber network investments and offer improved services to the end users. At the same time, our fixed wireless access solution powered by 5G standalone technology is gaining significant traction. effectively bridging gigabit connectivity gaps, contributing to positive broadband net adds in a traditionally weak performing quarter. In our TV segment, we are seeing the positive impact of strengthened anti-piracy measures and anticipate additional support from the abolition of the special tax at the beginning of next year, making our pay TV propositions even more affordable to the end users. Our TV business continues its robust growth and strong customer acquisitions. Building on our leading FTTH network, rising fixed wireless access adoption and strong TV performance, we remain focused on enhancing customer value. In line with this, we have deepened our convergent services strategy by partnering up with one of the major energy providers to enhance further the value offered to our retail customers. In the mobile segment, we continue our strong growth, driven by our network leadership and attractive commercial offerings. The successful transition from prepaid to postpaid plans, the optimization of our prepaid portfolio, and the increasing adoption of larger bundles and 5G devices penetration all together contribute to our solid performance. The recent CPI adjustments, which were mild after many years of experiencing much higher inflationary pressures on our cost drivers, were combined with additional customer benefits, and we contribute to some extent in our future growth. We remain at the forefront of the market as the operator of Greece's only commercially available 5G standalone network. And the reliability and resilience of our network continue to reinforce our long-term trajectory. We have also recently introduced the Magenta AI portfolio services, aiming to democratize AI access in the Greek market. By integrating the power of AI, we are delivering great value, further strengthening our commitment to innovation and customer satisfaction, partnering up with a number of global leaders in AI innovation, leveraging the partnerships of the Telecom Group. Our ICT business continues its strong momentum with another quarter of double-digit growth, highlighting our pivotal role in advancing the digitization of diverse sectors, supporting the digital transformation in businesses and the public sector organizations across Greece. To highlight, our recent contribution with advanced digital services and innovative educational tools in the educational sector, bringing all stakeholders closer to the Gigabit Society. In addition, our international ICT business is also growing, including projects for several European agencies. We remain focused on our operating and production model transformation, aiming to build a digital-first organization by actively deploying digital and AI tools. We have already enhanced areas like predictive network maintenance and customer care, with AI role in customer interactions steadily growing, boosting efficiencies, and delivering further value. Before finishing this review, I would also like to briefly mention that we have undertaken the initiative to provide free-of-charge high-speed connections to around 600 schools in remote areas of Greece, leveraging our FWA technology, opening up access to the digital world and offering equal opportunities to digitization for all students in Greece. A strong performance relies on our strategic directions. The strength of our integrated services portfolio provides tangible benefits and helps us confidently navigate competitive challenges while driving our future growth ambitions. Looking ahead, we remain confident in our ability to lead the market, capitalize on new opportunities, and consistently deliver on our commitments to our shareholders, customers, and partners. Bobby, on to you.

Thank you, Costas, and welcome to everyone on the call from E-Advert. As Costas already pointed out, the completion of our exit from the Romanian market marks a significant milestone. From a financial perspective, this transaction strengthens our forecast flow on a sustainable basis. We have adjusted our shareholder remuneration and we will proceed with an extraordinary dividend distribution of around 40 million euros, or 10 cents per share, in the next month. Now, turning to our quarterly figures. In Greece, we achieved a robust 5% increase in revenues, reflecting continued strength across our mobile, TV, broadband, and ICT segments, which more than offset the expected headwinds in areas such as national wholesale. EBITDA rose by 2%, keeping us firmly on track for our 40-year objectives. These days, fixed service revenues accelerated their growth this quarter to 1.3%. Our TV segment delivered another strong quarter, with revenues increasing by nearly 17%, maintaining a solid double-digit growth trajectory. Our customer base expanded by 6.7%, almost matching the net additions recorded in the same period last year, despite this being the second year of our content-sharing agreement. While we expect the anniversary effect from last year's Q4 price adjustments to impact year-on-year growth comparisons, our outlook for this segment remains positive. The adoption of anti-piracy legislation this year, together with the removal of the 10% special tax on pay TV, which would be effective January 1st of 2026, are paving the way to further encourage the take-up of legitimate platforms and reinforce our strong position in the market. Our broadband segment delivered a short performance this quarter, achieving positive net customer additions, despite the third quarter typically being seasonally the softer. We recorded 1,800 net broadband additions, driven primarily by the momentum in our fixed wireless access, FWA, offering, which now serves 33,000 subscribers. Turning to our FTTA service. There we delivered another strong quarter, recording 38,000 net additions and bringing our total FTTH customer to 509,000. Our retail FTTH customers now represent 22% of our total broadband base, up from 15% in the same period last year. This robust growth, coupled with sustained wholesale demand of our infrastructure, is driving increased network utilization and monetization. Utilization level has risen to 33%, reflecting both the ongoing demand for our FTTH network and the strength of our wholesale partnerships. In addition, under the new regulations in place, we have now started to stop offering non-FTTH services in buildings already connected with FTTH. This change serves as a key driver for customer upgrades and accelerates the transition to fiber to the home products. Now turning to our mobile operations. Their service revenues increased by 2.7%, sustaining their solid momentum. Our post-paid maintains its strong growth trajectory, with the customer base expanding by 6.4%, primarily driven by ongoing pre-to-post migrations. Starting from December this year, we'll implement a CPI-linked increase in monthly fees for our mobile customers. The adjustment is modest, 2.6%, averaging less than half a euro, and will apply to roughly 2 million postpaid customers, and will support the continued growth of mobile service revenues in the coming quarters. Our network leadership continues to serve as a key competitive differentiation. 5G coverage now exceeds 99% of the population, while 5G plus coverage has expanded to more than 75%. Data usage maintains its strong upward trajectory, with average monthly consumption per user reaching 20.5 gigabytes per month, representing a 29% year-over-year increase. In our wholesale segment, Revenues increased by 4.2% in the quarter, but that was primarily driven by higher volumes in the low-margin international traffic, which helped offset, in revenue terms only, the decline in national wholesale revenues. I would like to say that the international wholesale contributed approximately 81 million euros in the quarter. However, we expect this revenue stream, international wholesale revenues, of course, to decline in the coming quarters as certain activities will be phased out. Specifically, we anticipate that approximately 150 million euros in revenues will be removed from our records at the end of the fourth quarter of this year and a small amount impacting the first quarter of 2026. The termination of certain agreements where OTE acts as transit career will have minimal, if none, impact on profitability. Our national wholesale agreements On the other hand, continue to deliver solid volumes with 31,000 lines added to our network in the third quarter and 93,000 net additions year-to-date. On the other revenue streams, our system solution businesses, the core of our ICT segment, continued its robust growth, delivering almost 38% increase in the quarter. This strong performance builds on the momentum established in previous periods, and we anticipate this positive trend will persist throughout the remaining of this year. The solid results in ICT help to partially mitigate the decline in hazard revenues, which decreased by 15%, primarily due to phase-out of certain zero-margin activities there as well. Total operating expenses, excluding depreciation, amortization, and one-off items, increased by 34.3 million euros in the quarter, broadly in line with our revenue growth. The increase was mainly and primarily attributable to higher costs directly associated with top-line expansion, particularly increased third-party fees within our operating expenses, which reflect the strong momentum in our ICT segment as we discussed before. Additionally, we continue to incur certain operating expenses related to the growing adoption of fiber to the home, notably associated with the final phase of the connection of the customer. We remain, of course, firmly committed to cost discipline across all other several areas, with continued savings most evident in personal expenses, supported by the ongoing benefits from our X programs. As a result, adjusted BDA after leases increased by 2% in the quarter, maintaining the same positive trend as in the previous quarter. Our EBITDA margin reached 41%, representing a decrease of 120 base points year-over-year, primarily reflecting a higher proportion of lower-margin revenue streams. Overall, as we now approach the year-end, our performance reinforces our confidence in achieving our full-year EBITDA targets and guidance. Now let's take a look at the CAPEX and CASH flows. First of all, CAPEX was up 8.2% in the first nine months, reaching €437 million, largely reflecting continued rollout of fiber to the home and the expansion of our fixed wireless access infrastructure. Our full-year CAPEX guidance now stands at approximately €600 million after stripping off the Romanian business. I would like to clarify that the acquisition of the VB concession will not, will not alter our CAPEX guidance. We now anticipate that we will be covering nearly 3.5 million homes by 2030, as we will continue our fiber-to-the-home rollout for a couple of more years, and therefore maintain the current levels of approximately 600 million CAPEX per annum. Finally, Fricas Law, after leasing from convening operations, reached 108 million euros in the quarter, up from 100 million on the same period last year. The improvement was mainly driven by the high EBITDA in the quarter. Income tax outflows and the quality capital figures have been affected by different settlement amounts between these lines related to payments and receivables from the public sector. Today, we updated our guidance for free cash flow to 530 million euros, up from 460 million due to the disposal of the Romanian business. The revised guidance now reflects exclusively our grid operations. At this point, we concluded the presentation and operators were now available to provide any further clarification.