Q2 2026 OTE Results

OTE delivers solid Q2 2026 results with rising profits and improved credit rating.

What the company is saying

OTE frames the quarter as a period of operational and financial strength, highlighting a 3.0% increase in Adjusted EBITDA (AL) to €343.3 million and a 21.7% rise in the final dividend per share to €0.90214. The company emphasizes record FTTH net additions of 62,000, expanding its customer base to 687,000 and increasing network coverage to 2.2 million homes. Management claims continued leadership in FTTH deployment and mobile subscriber growth, with postpaid subscribers up 8% year-on-year. The announcement foregrounds S&P’s upgrade of OTE’s credit rating to A-, asserting this makes OTE the only company in Greece with an 'A' category rating, though no comparative data is provided. Forward-looking statements reiterate guidance for c.3% Adjusted EBITDA (AL) growth, c.€600 million capex, and c.€750 million Free Cash Flow (AL) for 2026. The tone is confident and positive, with CEO Kostas Nebis quoted as affirming OTE’s transformation and market position.

What the data suggests

The reported numbers confirm a steady financial trajectory. Q2 2026 revenues reached €855.8 million, up just 0.1% year-on-year, while Adjusted EBITDA (AL) grew by 3.0% to €343.3 million, and EBIT rose 5.9% to €203.3 million. Net profit attributable to shareholders increased 12.2% to €145.0 million, and EPS climbed 15.0% to €0.3683. Capex fell 7.7% to €156.9 million, indicating improved capital efficiency, and net debt dropped 9.8% to €405.3 million, with a low net debt/EBITDA ratio of 0.3x. Free Cash Flow (AL) declined 6.9% to €149.6 million, which is a negative outlier. Operationally, FTTH net additions hit a record 62,000, with utilization at 41.7% and network coverage at 2.2 million homes. Mobile service revenues grew 2.3% to €270.0 million, and postpaid subscriber growth was robust at 8%. Some claims, such as 8% revenue growth and market leadership, are not substantiated by the disclosed data; actual revenue growth is much lower, and no comparative market data is provided.

Analysis

The announcement's tone is positive but proportionate to the actual, measurable progress disclosed. Key financial and operational metrics—such as revenues, Adjusted EBITDA (AL), EBIT, profit, EPS, capex, net debt, and free cash flow—are all reported with clear year-on-year comparisons, and most claims are directly supported by these figures. While there are some forward-looking statements (e.g., FTTH homes passed target, full-year guidance), the majority of the headline claims are realised and substantiated by current data. The capital outlay (capex) is significant but is paired with immediate and ongoing operational and financial improvements, not just long-dated projections. There is no evidence of narrative inflation or overstatement; the language is largely factual, and unsupported or exaggerated claims are minimal and do not dominate the announcement.

Risk flags

• ●Revenue growth is significantly overstated in the narrative, with the company citing 8% growth but actual Q2 2026 revenue growth at only 0.1%. This gap between headline claims and reported numbers raises concerns about selective disclosure and narrative inflation.
• ●Segmental revenue and profitability data are incomplete, particularly for fixed retail services and Data com, making it difficult to independently verify operational claims and assess the sustainability of growth in all business lines.
• ●The claim of market leadership in FTTH and exclusivity in credit rating lacks supporting comparative data, introducing reputational risk if competitors or rating agencies dispute these assertions.
• ●Free Cash Flow (AL) declined by 6.9% year-on-year to €149.6 million, contrasting with improvements elsewhere and suggesting potential pressure on cash generation despite higher profits and lower capex.
• ●A €500 million bond matures in September 2026, and while the company plans to refinance most of it, execution risk remains if market conditions deteriorate or refinancing costs rise.

Bottom line

OTE’s Q2 2026 results show genuine operational and financial progress, with rising profits, improved margins, and a stronger balance sheet. Most headline claims are supported by disclosed numbers, though some—such as the 8% revenue growth and market leadership—are exaggerated or unsubstantiated. The company’s ability to raise its dividend by 21.7% and secure an A- credit rating from S&P reflects real underlying strength. However, the drop in Free Cash Flow (AL) and incomplete segmental disclosures temper the positive narrative. The maturing €500 million bond in September 2026 introduces a refinancing hurdle, but leverage remains low. For investors, the main takeaway is that OTE is delivering on most of its promises, but scrutiny is warranted around cash generation and the accuracy of some operational claims. Further transparency on segmental performance and substantiation of market leadership would strengthen the investment case.

Announcement summary

(LSE:OTES) OTE GROUP reported Q2 2026 revenues of €855.8 million and Adjusted EBITDA (AL) of €343.3 million, up 3.0% year-on-year, with a margin of 40.1%. The company achieved record FTTH quarterly net additions of 62k, expanding the customer base to 687k and FTTH network coverage to 2.2 million homes passed, with utilization increasing to 41.7%. Mobile service revenues grew by 2.3%, with record post-paid net additions of 62k and year-on-year subscriber growth of 8%. Capex for Q2 2026 was €156.9 million, down 7.7% from Q2 2025, and Free Cash Flow (AL) stood at €149.6 million. The final dividend per share was €0.90214, up 21.7%, and S&P upgraded OTE's credit rating to A- from BBB+. The company projects FTTH homes passed to reach approximately 2.4 million by year-end 2026 and reiterates 2026 guidance of c.€750mn Free Cash Flow (AL), c.€600mn Capex, and c.3% Adjusted EBITDA (AL) growth.

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