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 Viotek conference call and live webcast to present and discuss the third quarter 2026 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, OTEC Group, Mr. Babis Mazarakis, Chief Financial Officer, Mr. Panagiotis Gavrilidis, Chief Marketing Officer, Consumer Segment, OTEC Group, and Mr. Evrikos Sarsentis, Head of IR and M&A. Mr. Nebis, you may proceed.

Thank you, Kelly. So, we're welcome to everyone, and thank you for joining us here today to review our third quarter results. Our performance over the first nine months of the year reinforces our confidence in delivering our 2026 growth ambition. In the third quarter, EBDA growth accelerated further, reflecting the sustained momentum across our business and continued progress in our transformation agenda. At the same time, underlying revenue growth remained strong, supported by the resilience of our operations and the contribution of our key growth areas. Looking at our quarterly performance in more detail, I will start with a fixed business. While navigating and demanding competitive landscape, we maintain a broadly stable broadband base compared to a year ago, while sustaining positive momentum across fiber-to-the-home, fixed wireless access, and pay-TV services. Our B2B data communication services also recorded solid growth driven by advanced connectivity solutions supporting In FTTAs, infrastructure utilization increased further, driven by solid customer net additions in both retail and wholesale. Our network footprint continues to expand, reaffirming our position as the leading network provider in the country across both urban and rural areas. At the same time, adoption of our advanced in-home connectivity solutions continues to progress well. further enhancing the customer experience and strengthening the distinctiveness of our offering over competitors. At the same time, the strong momentum of our fixed wireless access offering has strengthened our ability to compete effectively with satellite-based alternatives. By fully leveraging the capabilities of our 5G standalone network, we are enhancing our fixed broadband proposition, extending high-speed connectivity across the country and further reinforcing our competitive position in the market. Within our fixed segment, Pay TV continued to perform strongly. In a dynamic environment, we once again delivered robust revenue and customer growth, surpassing the 800,000 customer milestone. This achievement underscores the sustained appeal of our offering and its growing contribution to the overall strength of our fixed services portfolio. Turning now to our mobile business, we are pleased to see continued solid momentum. Customers continue to migrate from prepaid to postpaid plans, while demand for higher-value data services is growing. As a result, we delivered another quarter of strong postpaid customer growth and another quarter of overall mobile-based ARPU growth. And with prepaid customers still representing a relatively high share of the market compared to the rest of Europe, we see substantial room for further growth in the future. The consistent quality and reach of our mobile network remain our key competitive advantages and important drivers of customer value. With the widest population coverage in the country, our 5G and 5G Plus networks continue to set us apart, while their performance is recognized by leading independent industry benchmarks. This consistent performance underscores our long-term investment in the network and our commitment to delivering superior customer experience. In our system solution business we are now looking ahead with the recovery and resilience facility deployment cycle mostly complete. We delivered another solid performance in the quarter and our robust results today reinforce our commitment to delivering solid double digit growth for the full year. We are strengthening our collaboration with several EU organizations and continuing to advance the digitization of both the public and private sectors. focusing on high growth areas like cloud, security and AI. The strong portfolio of national and international opportunities we are building gives us confidence and provides a solid foundation for the year ahead. We are combining strong performance across our business with the continued transformation of our tech group, embedding data and AI to improve the customer experience, unlock greater efficiencies, strengthen our value proposition, and further differentiate us in the market. Our focus here spans across several areas. First of all, enhancing sales and customer interactions, advancing intelligent network management, Improving IT productivity while at the same time developing AI-native products and new revenue opportunities. This includes AI-enabled solutions already visible to our B2B customers and our planned AI calling service designed to offer a next-generation experience to our customers. We are also introducing AI-driven customer interfaces, conversational tools and intelligent agents to empower customer support. We already see tangible benefits in our customer care services where AI capabilities have been employed extensively. Across our networks, we are pursuing greater automation while leveraging AI to enhance software development productivity and accelerate execution. Before closing, allow me to share a few words about the recent evolution of our brand to telecom. By combining our strong foundations with the scale, technology and innovation of a global leader, we are opening up new possibilities to innovate faster, harness the potential of AI, create better digital experiences and deliver even greater value to our customers, our shareholders and the country overall. We are setting our sights higher with a clear ambition to lead in Europe and bring Greece to the forefront of digitization in Europe. Looking ahead, we remain confident in our ability to compete effectively, supported by the strength of our business, our leading network infrastructure, and the momentum across our key growth areas. With our ongoing investments and disciplined execution, we are focused on delivering our 2026 targets, sustaining growth, and creating long-term value. And with that, I will hand over to Babis.

Thank you, Costas, and welcome to everyone, from me as well. Before reviewing our performance, let me briefly clarify our FTTH-allowed failures. Starting out of this quarter, alongside our existing metrics, which refers to home passed by fiber and have an active fixed-line connection, we will also report all homes passed irrespective of whether there is an active connection and antenna technology or these are simply empty. This definition aligns well with prevailing market practice and improves comparability. We will disclose both metrics through the fourth quarter 2026 reporting period. Let's move now to the performance of the quarter. Total revenues adjusted for the anticipated phase-out of certain international wholesale activities with near zero margin impact increased by 5% year-on-year, while the respective growth for the nine-month period stood at over 8%, namely 8.4%. The increase is mainly driven by positive performances across system solutions and data communications alongside the ongoing momentum in FTTH, TV and particularly the mobile. In the fixed business, the retail market remained intensively competitive with fixed retail service revenues slightly lower year-on-year and broadly stable in the first nine months. Including data communications, Fixed retail service revenues increased by 2.9% year-on-year, supported by continued FTTH customer data and solid contributions from our TV and fixed wireless access businesses. Data communications delivered solid growth, driven primarily by rising B2B demand for advanced connectivity solutions, notably our SD-WAN offering. In FTTH, Strong net additions of 52,000 brought our customer base to 739,000, representing 31% of our broadband base compared with 21% a year ago. Continued customer migrations, footprint expansion, and solid wholesale demand further increased the utilization of our network to 44% based on the commercially available active lines approach, or 32% based on the broader HomePass definition that I referred earlier. We remain on track with our rollout and continue to lead the market, having reached 3 million HomePass with a target of more than 3.1 million by year end and an ambition of more than 4.6 million by 2030. These figures are based on home-pass approach in line with the prevailing market practices. FWA maintains strong momentum, recording 15,000 net additions, bringing the total subscriber base to 134,000, more than double the 62,000 recorded a year ago. A key driver remains our advanced 5G Wi-Fi proposition, supported by the continued expansion of our 5G Plus network. By extending high-speed broadband to underserved areas, FWA complements our overall broadband proposition and reinforces our competitive position. In TV, positive trajectory continues with revenues growing at a high single-digit rate, namely 9%. We added 9,000 subscribers during the quarter, and as Kostas mentioned, we crossed the 800,000 mark, increasing our customer base by 6% year-on-year. We have now secured most of our key content for this season, and though at a moderate pace, we expect positive momentum to continue, supported by the strength and value of our proposition. Moving to mobile, Our business remains strong and resilient, delivering consistent growth and solid KPIs across the board. Service revenues increased by 2% year-on-year, supported by strong postpaid growth and sustained demand for high value proposition. As expected, growth has moderated as we moved beyond the benefits of last year's prepaid adjustments, while the fourth quarter will also reflect the normalization of the CPI changes which were implemented last year. Postpaid performance remained strong with 49,000 net additions, while year-on-year subscriber growth remained elevated at 7.5%. This performance is supported by continuous migration from prepaid to postpaid, a trend that is also driving growth in the overall mobile ARPU. Mobile data usage increased by 18% year-on-year to 24 GB per user per month, while unlimited plans reached 37% of the total B2C base, up from 33% a year before. These trends reflect growing demand for higher value mobile data services. A critical enabler of our mobile growth is our network leadership, which remains a key differentiator. Our 5G population coverage now exceeds 99% and 5G Plus has reached approximately 85%. Other revenues, which also excludes data communications, increased by 15.7% year-on-year, supported by another positive performance in system solutions, where revenues increased by 9%, albeit at a more moderate pace following the completion of the RRF investment cycle. As Kostas outlined, we have many reasons to be confident about the year ahead, supported by a rich and diversified portfolio. Asset revenues were also up in the quarter, recording a 9% year-on-year increase, mainly as a result of higher prices in the market. Turning to wholesale now, the drop in revenues primarily reflects the planned phase-out of zero-margin international transit activities, as already communicated in our previous calls. We are anticipating a total of approximately 160 million euros of revenues to roll off during this year, completing the rundown that began in 2025. Importantly, you should keep in mind, given the very low margin nature of this revenue stream, we anticipate only a very minimal impact on profitability. On the domestic side, wholesale revenues continue to follow trends similar to previous periods. mainly reflecting the rollout of completing FTTH networks in the market. So our full year expectation remains at approximately 15 million euros drop. At the same time, demand for our wholesale FTTH remains strong, with 43,000 net additions in the quarter, bringing the total for the nine months to 138,000, already exceeding the full year 2025 level. This continued take-up further supported the increase in the utilization of our fiber infrastructure. Aggressive DBDA after leases increased by 3.1% year-on-year, with a margin expanding by 90 base points to 42.1%. This performance was driven by sustained service revenue growth and continued cost discipline. Lower personnel expenses and deficiencies in other direct The increase relates to the portion of our energy consumption that remains exposed to floating prices. Our transformation initiatives continue to drive sustainable cost efficiencies, with indirect costs declining to 28% of service revenues compared to 30% a year ago. Digital adoptions also continue to progress with e-sales, digital payments, and e-top-ups accounting for 37%, 44%, and 53% on totals, respectively. These improvements, together with our solid operating performance, reinforce our confidence in achieving our full-year EBITDA growth guidance of 3%. Finally, let me say a few things on CapEx and Free Cash Flow. CAPEX reached 176.4 million euros, up 17.8% year-on-year, primarily reflecting TV payments during the quarter. For the first nine months of the year, CAPEX was broadly stable versus last year, increasing by just 1% compared with the same period of last year, and as we publish today, we maintain our CAPEX guidance at a bit over 600 million euros. Investments are focused on expanding our FTTH footprint and accelerating the rollout of our 5G standalone network, supporting our fiber, mobile, and fixed wireless access offerings. Frequent slow after leases increased by 27.7% year-on-year, reaching 137.4 million in the quarter due to lower income tax payments, higher EBITDA, and improved working capital. For the full year, we reiterate our reported free cash flow guidance of approximately 750 million euros, as well as underlying free cash flow of 570 to 580 million euros, adjusting only for the one-off tax items. That said, this implies an extraordinary strong pre-cash flow generation in the last quarter of the year, which will be positively impacted by lower working capital needs as we anticipate the reduction in sales outstanding given the completion of RRF funded projects and lower tax payments. Finally, a few words on our debt position as we issue the 350 million bond to partially refinance our 500 million bond that matured in September. While the pricing reflects the current environment, our credit rating and our strong balance sheet limited our spread. Without one operator, we are now available to provide any further clarifications. Operator?