Europe

Customer development

Total

Excluding the effect from the sale of the Romanian mobile business as of October 1, 2025, the Europe operating segment recorded customer growth compared with the end of 2024, with the mobile customer base increasing by 2.1 %. The number of broadband customers increased by 3.1 %. Our convergent product portfolio generated substantial growth of 7.9 % in FMC customers thanks to ongoing demand. We are making good progress in network infrastructure: The build-out of our fixed-network infrastructure with state-of-the-art optical fiber is our priority. The build-out of the 5G network also continues.

Mobile communications

Our Europe operating segment had a total of 47.2 million mobile customers as of December 31, 2025. This figure was down by 5.1 % against the end of the prior year on account of the sale of the Romanian mobile business. Excluding this effect, the number of mobile customers increased by 2.1 %, which included an increase of 3.0 % in the number of mobile contract customers. All national companies contributed to this growth, especially Poland, Greece, the Czech Republic, and Croatia. Overall, contract customers accounted for 54.2 % of the total customer base. Our customers benefit from greater coverage with fast mobile broadband – a result of our integrated network strategy. The footprint countries of our operating segment are also making further headway with 5G. As of the end of 2025, our national companies covered 91.9 % of the population in our European footprint on average with 5G, a substantial increase against the prior year.

Excluding the sale of the Romanian mobile business, the prepaid customer base grew by 1.0 % compared with the end of the prior year. We also convinced a larger portion of our prepaid customers to switch to higher-value contract rate plans.

Fixed network

The broadband business increased by 3.1 % compared with the end of 2024 to a total of 7.4 million customers. This growth, mainly driven by the national companies in Poland, Hungary, and the Czech Republic, offset the decline in Austria. By continuing to invest in optical fiber, we are systematically building out our fixed-network infrastructure. As of the end of 2025, 11.3 million households (43.1 % coverage) have access to our high-performance fiber-optic network offering gigabit speeds. The number of homes passed grew by 1.3 million compared with the end of 2024. As of the end of 2025, the number of fixed-network lines subscribed to declined slightly by 0.7 % compared with the end of 2024 to 8.0 million.

The TV and entertainment business had a total of 4.5 million customers as of December 31, 2025, a slight increase of 1.3 % against the end of the prior year. The TV market is already saturated in many of the countries in our segment, where TV services are offered not only by telecommunications companies, but also by OTT players.

FMC – fixed-mobile convergence and digitalization

Our portfolio of convergent products, MagentaOne, was highly popular with consumers across all of our national companies. As of December 31, 2025, we had 8.8 million FMC customers. This represents an increase of 7.9 % in the customer base. All of our national companies, but in particular Poland, Greece, Hungary, the Czech Republic, and Slovakia, contributed to this growth. We have also seen rising customer numbers from the marketing of our MagentaOne Business product to business customers.

We continue to expand our digital interaction with customers, which means we can meet customer needs in a more personalized and efficient way, and position products and innovative services on the market more quickly. Our service app is used by 73.4 % of our consumers.

Development of operations

Revenue, service revenue

Our Europe operating segment generated revenue of EUR 12.7 billion in the reporting year, a year-on-year increase of 2.5 percent. In organic terms, i.e., primarily excluding the sale of the Romanian mobile business and exchange rate effects, revenue increased by 2.9 %. Service revenues grew by 3.5 % year-on-year, or by 3.9 % in organic terms. All national companies contributed to this growth, with our national companies in Greece, Poland, Hungary, the Czech Republic, and Croatia recording the strongest developments in absolute terms.

Organic service revenue growth was due to the strong performance of the mobile business on the back of a larger contract customer base and higher revenue per customer. The year-on-year increase in fixed-network service revenues additionally contributed to this growth. Our intense focus on the continued build-out of high-speed network infrastructure drove growth in broadband and TV revenues, which more than offset the expected declines in voice telephony revenues. The IT business also made a positive contribution to revenue. Declines in revenue from mobile terminal equipment and in wholesale business had an offsetting effect.

Service revenues from Consumers increased in organic terms by 3.4 % against the prior year. In mobile communications, service revenues increased as a result of both a higher contract customer base and higher revenue per customer. In the fixed network, revenue from broadband and TV business increased thanks to our continuous fiber-optic build-out and our TV and entertainment offerings. This more than offset the decline in revenue from voice telephony. In addition, a higher number of FMC customers had a positive impact on revenue development.

Service revenues from Business Customers grew on an organic basis by 5.5 % against the prior year, with Greece (IT), Croatia (all product areas), Poland (mobile communications), and the Czech Republic (all product areas) making the largest contribution. All product areas recorded year-on-year growth. The mobile contract customer base grew by 1.8 %. In the fixed-network business, the number of broadband customers rose by 3.7 %. Fixed-network service revenues grew by 2.5 % overall. IT revenues increased substantially by 12.6 % year-on-year in organic terms, due to an increase in business with digital infrastructure.

Adjusted EBITDA AL, EBITDA AL

The sound operational revenue trend contributed to strong growth of 5.6 % in adjusted EBITDA AL in the reporting year, to EUR 4.7 billion. In organic terms, adjusted EBITDA AL grew by 5.4 %. Looking at the development by country, this increase was attributable to positive absolute trends, in particular in Hungary, the Czech Republic, Poland, and Greece. Overall, the increase in earnings for the Europe operating segment is mainly attributable to the positive net margin. Indirect costs remained stable at the prior-year level.

At EUR 4.6 billion, EBITDA AL increased by 4.4 % against the prior year. The expense arising from special factors increased year-on-year in connection with the sale of the Romanian mobile business.

Development of operations in selected countries

Greece. In 2025, revenue in Greece increased by 3.9 % year-on-year to EUR 3.5 billion. In organic terms, revenues increased by 4.3 %. This development is largely due to higher service revenues, mainly from IT, but also from the mobile businesses. Revenue in the fixed-network business remained stable against the prior-year period. In addition to the expected decline in revenues in traditional voice telephony, declines were also recorded in wholesale business. Higher revenues in the TV and broadband business had an offsetting effect. Our convergence products continued to perform well, with further customer additions and corresponding revenue.

Adjusted EBITDA AL stood at EUR 1.4 billion, up 2.0 % year-on-year. In organic terms, the increase was 2.1 %, driven mainly by a higher net margin.

Hungary. Revenue in Hungary totaled EUR 2.3 billion in the 2025 financial year, a slight year-on-year increase of 1.4 %. Excluding negative exchange rate effects, revenue increased by 2.4 %. This development was driven mainly by the mobile business, in part on the back of higher revenue per customer. Thanks to our increased investments in the build-out of fiber-optic lines, our offers have won over large numbers of customers. This enabled higher service revenues in broadband business. IT revenues declined. Our convergence products continued to perform well, with further customer additions and corresponding revenue.

Adjusted EBITDA AL stood at EUR 889 million, 15.7 % above the prior-year level. In organic terms, adjusted EBITDA AL grew by 17.4 %. This substantial increase was due to a significantly higher net margin from the positive development in operating business, as well as to the revocation of the supplementary telecommunications tax as of January 1, 2025.

Poland. In the reporting year, revenue in Poland totaled EUR 1.7 billion, an increase of 5.2 %. Excluding positive exchange rate effects, revenue increased by 3.6 %. The growth was mainly driven by mobile service revenues on the back of an increase in the number of contract customers. Broadband and TV revenues from the fixed-network business also posted significant increases, likewise as a result of a growing customer base. The number of FMC customers increased substantially again, with a corresponding positive impact on revenues. By contrast, non-service revenues declined, in particular from mobile devices.

Adjusted EBITDA AL stood at EUR 475 million, 9.0 % above the prior-year level. In organic terms, adjusted EBITDA AL grew by 7.3 %, due to a higher net margin, which more than offset the increase in indirect costs.

Czech Republic. Revenue in the Czech Republic stood at EUR 1.3 billion in 2025, an increase of 4.3 % against the prior year. Excluding positive exchange rate effects, revenue increased by 2.5 %. Service revenues increased by 3.5 % in organic terms, due in part to increases in the fixed network business, particularly the broadband and TV businesses. Service revenues also increased, due to positive growth rates in mobile revenues, driven by increases in the respective customer base. The number of FMC customers likewise grew in the reporting year, with corresponding revenues. IT revenues also increased.

Adjusted EBITDA AL increased by 8.3 % year-on-year to EUR 548 million. In organic terms, adjusted EBITDA AL grew by 6.4 %, due to a higher net margin. This included a negative one-time effect in the prior year resulting from the termination of a business relationship. This was partially offset by an increase in indirect costs.

Austria. Revenue increased by 0.9 % in the reporting year to EUR 1.5 billion. This development was driven by higher service revenues from the mobile business, in particular from wholesale, on account of an overall increase in the customer base. The broadband business also recorded growth, mainly as a result of higher revenue per customer. The number of FMC customers grew in the reporting year, with corresponding revenues.

Adjusted EBITDA AL increased by 1.6 % year-on-year to EUR 555 million. These earnings are driven by a higher net margin.

Profit/loss from operations (EBIT)

In our Europe operating segment, EBIT increased significantly by 10.8 % in the reporting year to EUR 2.5 billion, mainly due to the increase in EBITDA. Depreciation, amortization and impairment losses remained more or less stable.

Cash capex (before spectrum investment), cash capex

In the reporting year, our Europe operating segment reported a year-on-year increase in cash capex (before spectrum investment) to EUR 2.0 billion, an increase of 8.3 %, due to the increase in the volume of the underlying investments in optical fiber, mobile communications, and fixed-network capacity. Cash capex increased by 17.3 % compared with the prior year, due to the higher level of investment and cash outflows for the acquisition of spectrum in Poland and Slovakia. We continue to invest in the provision of broadband, fiber-optic technology, and 5G as part of our integrated network strategy.