OTE -Q3/9M:18 1st Glimpse: Satisfactory quarter better than expected | Greece performance drives profitability

Q3/9M:18 highlights:

§  Total adjusted EBITDA in Greece was up in the quarter by 5.7%, at €320.6mn. At 42.5%, the adjusted EBITDA margin in Greece was up an impressive 150 basis points compared to the third quarter of 2017.

§  In Q3’18, the Group’s adjusted Free Cash Flow was €132.5mn, a €160.6mn increase compared to Q3’17,

§  The Group’s adjusted Net Debt was €0.8bn at September 30, 2018, an increase of 24.4% compared to September 30, 2017. The Group’s ratio of adjusted Net Debt to 12-month trailing adjusted EBITDA stood at 0.6x.

§  For the full year, management continues to expect adjusted Capex of approximately €700mn. Reflecting further cash generation improvements, OTE expects 2018 full-year reported FCF to reach approximately €260mn. This amount has already been paid out to shareholders pursuant to the shareholder remuneration policy announced earlier this year. 

The following table summarize reported results vs consensus estimates: 

ΗΤΟ

2017

2018

Y-o-Y

2018

Act. vs

2017

2018

Y-o-Y

2018

Act. vs

EUR thous.

9M

9M

(%)

Q3 Est.

Est.

Q3

Q3

(%)

Q3 Est.

Est.

Sales

2,859.0

2,871.9

0.5%

2,883.5

-0.4%

991.2

991.5

0.0%

1,003.1

-1.2%

EBITDA

924.7

953.7

3.1%

947.2

0.7%

317.4

359.0

13.1%

352.5

1.8%

EBITDA Mrg

32.3%

33.2%

+86 bps

32.8%

1.1%

32.0%

36.2%

+419 bps

35.1%

3.0%

Net Income

119.9

207.3

72.9%

191.00

8.5%

52.4

119.3

127.7%

103.0

15.8%

Net Mrg

4.2%

7.2%

+302 bps

6.6%

9.0%

5.3%

12.0%

+675 bps

10.3%

17.2%

Hellenic Telecom will host a conference call to present and discuss results on Thursday November 8, 2018 at 17:00 (Greek Time). Dial in numbers:

  • GR          8008481114
  • UK          08082380669
  • US          18775539962

Manos Chatzidakis – Head of research

29 Alexandras Avenue

11473 Athens,Greece