This article first appeared on GuruFocus .
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Consolidated Revenue:Increased by 1.9% to EUR460 million.
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EBITDA:Rose 2.1% to EUR203 million with a margin of 44.2%.
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EBITDA minus CapEx:Grew 18% to EUR84 million.
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Recurring Free Cash Flow:Increased 22% to almost EUR80 million.
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Recurring Net Income:Increased 7.9% to EUR60 million.
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Telco Revenue:Declined slightly by 0.2% to EUR390 million.
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IT Revenue:Increased 16% to EUR54 million.
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Audiovisual and Cinema Revenue:Increased 7% to EUR25 million.
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CapEx:Declined 5% to EUR86 million.
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Net Financial Debt:Decreased to EUR930 million.
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Financial Leverage Ratio:Improved to 1.4 times.
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Liquidity Position:EUR347 million as of March 31.
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Release Date: May 12, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Revenue growth driven by strong IT expansion and solid Audiovisuals and Cinema performance, offsetting competitive pressure in Telco.
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EBITDA increased by 2.1% with disciplined cost management and structurally lower CapEx, leading to healthy cash flow generation.
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Credit rating upgraded to BBB by S&P, reflecting a stable financial outlook.
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Recurring free cash flow grew 22% to almost EUR80 million, indicating strong operational performance.
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The SCAILE program is effectively scaling AI across NOS, enhancing efficiency and productivity in sales and customer service.
Negative Points
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Telco revenues declined slightly by 0.2%, mainly impacted by the wholesale unit.
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B2C segment recorded a decline of 0.7%, driven by competitive pressure and the impact of Storm Kristin.
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Mobile prepaid declined by 65,000, reflecting competitive pressure in the low-cost segment.
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ARPU is impacted by the increasing weight of the second brand, WOO, within the customer base.
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Storms in Portugal had some impact on CapEx, although not material enough to affect the declining trend.
Q & A Highlights
Q: Can you provide more details on the impact of price increases in the Telco segment and any ongoing or potential future CapEx related to recent storms in Portugal? A: Luis Nascimento, Executive Member of the Board of Directors, explained that the competitive environment remains stable, with DiGi losing momentum. The dual brand strategy has positively impacted operations, but ARPU is affected by the increasing weight of the second brand. Future CapEx is expected to decline, continuing the trend of reduced expansion in mobile and FTTH. The storms have had some impact on CapEx, but not enough to affect the declining trend.
Q: How did the price increases land, and what is the impact of the storms on ARPU? A: Luis Nascimento stated that the price increases were well received, with no impact on churn and a 40% decline in complaints compared to 2024. The storms affected ARPU as some customers were not billed due to service disruptions, but this effect is fading. The competitive dynamics and the WOO effect are also impacting ARPU.
Q: What is the outlook for residential ARPUs and consumer revenue growth? A: Miguel Nuno Santos Almeida, CEO, noted that headwinds from discount brands will continue throughout 2026, but their intensity is not increasing. The price increase and storm effects will influence ARPU, but the main message is that headwinds will persist. The expectation is for stable trends, with potential for positive growth in B2B revenues.
Q: Can you provide an update on the IT division synergies and sector consolidation? A: Miguel Nuno Santos Almeida mentioned that IT synergies are in early stages, with a promising pipeline showing potential materialization. Regarding sector consolidation, he believes the market will eventually move from four to three operators, as the fourth operator is not economically sustainable. However, this change is not expected in the short term.
Q: What is the progress of the SCAILE program and its impact on savings? A: Luis Nascimento reported that the SCAILE program is progressing well, with about 30% of initiatives implemented. The program is contributing significantly to cost reductions, with Telco costs declining by 2.7% this quarter. The efficiencies are expected to continue delivering savings in the coming quarters.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
