Q4 2025-FY 2025 Financial Results
OTE Group (AIM: OTES) reported robust financial results for the fourth quarter and full year of 2025, with revenues increasing by 8.7% to €916.3 million in Q4 and reaching €3,464.3 million for the full year, a 3.9% rise. The company also raised its 2026 EBITDA guidance to approximately 3%, reflecting a positive outlook driven by strong mobile service revenue growth and significant Fiber-to-the-Home (FTTH) expansion. In the fourth quarter, mobile service revenues grew by 5.2%, bolstered by a record addition of 60,000 post-paid subscribers, while fixed retail service revenues saw a 2.6% increase. The FTTH connections surged to 567,000, with 58,000 new additions in the quarter, as the rollout is on track to reach 2.1 million homes.
This performance aligns with OTE's strategic objectives outlined in previous announcements, including its commitment to enhancing digital infrastructure and expanding its FTTH network. The company has consistently communicated its ambition to lead in digital transformation and connectivity, as evidenced by its ongoing investments in advanced network solutions. Following the disposal of Telekom Romania Mobile Communications, OTE has focused on its core operations, which has allowed it to streamline its financial reporting and concentrate on growth in its remaining segments. The new shareholder remuneration policy linked to Free Cash Flow (FCF) performance, proposing a total payout of €532 million for 2026, underscores the company's commitment to returning value to shareholders while maintaining a robust operational framework.
Financially, OTE's balance sheet appears solid, with cash and cash equivalents amounting to €520.9 million, a notable increase of 11.5% year-on-year. The net debt has decreased by 14% to €553.3 million, indicating improved financial health and capacity for future investments. The company generated approximately €542.8 million in FCF for 2025, which supports its planned expenditures, including a dividend payout of €355 million and a €177 million share buyback program. This disciplined approach to capital allocation reflects OTE's focus on sustainable growth while enhancing shareholder returns.
In terms of peer comparison, OTE operates in a competitive telecommunications landscape, with direct peers including companies such as Telenor ASA (OSL: TEL), which has a market capitalisation of approximately €25 billion and focuses on mobile and broadband services across Europe and Asia. Another comparable entity is Orange S.A. (Euronext: ORA), which has a market cap of around €30 billion and offers similar services in various European markets. Additionally, Vodafone Group plc (LSE: VOD), with a market cap of approximately €30 billion, competes in mobile and broadband sectors across multiple regions. These peers demonstrate a similar focus on expanding digital infrastructure and enhancing customer connectivity, although OTE's specific focus on FTTH expansion sets it apart in the Greek market.
The significance of OTE's recent results lies in its ability to de-risk its business model through strategic investments in FTTH and mobile services, which are expected to drive future growth. The company's commitment to enhancing shareholder value through substantial dividends and share buybacks further positions it favorably against its peers. As OTE continues to execute its strategic vision towards 2030, its focus on digital transformation and network innovation will be critical in maintaining its competitive edge in the telecommunications sector. The anticipated growth in FTTH adoption and mobile service expansion is likely to bolster OTE's market position, making it a compelling player in the evolving landscape of European telecommunications.