Europe

Customer development

Total

In the Europe operating segment, almost all key performance indicators for customer development posted improvement compared with the end of 2024. Our convergent product portfolio generated growth of 1.8 % in FMC customers thanks to ongoing demand. The number of mobile customers remained stable. Our build-out of the 5G network is making good progress. The build-out of our fixed-network infrastructure with state-of-the-art optical fiber is our priority. The number of broadband customers increased by 0.9 %.

Mobile communications

In our Europe operating segment, the overall number of mobile customers as of March 31, 2025 remained stable against the prior-year-end at 49.8 million. The number of contract customers increased slightly by 0.5 %. All national companies except for Hungary contributed to this growth, especially Greece, Poland, the Czech Republic, and Slovakia. Overall, contract customers accounted for 54.1 % 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 the first quarter of 2025, our national companies covered 79.0 % of the population on average with 5G, a further increase against the prior year.

The prepaid customer base declined slightly by 0.2 % compared with the end of 2024. We convinced a portion of our prepaid customers to switch to higher-value contract rate plans.

Fixed network

The broadband business increased by 0.9 % compared with the end of 2024 to a total of 7.2 million customers. This growth is mainly driven by the national companies in Poland, Hungary, and the Czech Republic. By continuing to invest in optical fiber, we are systematically building out our fixed-network infrastructure. As of the end of the first quarter of 2025, around 10.4 million households (39.5 % coverage) have access to our high-performance fiber-optic network offering gigabit speeds. Compared with the end of 2024, we have won around 200 thousand new subscriptions. As of the end of the first quarter of 2025, the number of fixed-network lines subscribed to was on a par with the prior-year level at 8.1 million.

The TV and entertainment business had a total of 4.4 million customers as of March 31, 2025, which was stable 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 March 31, 2025, we had 8.3 million FMC customers; this corresponds to growth of 1.8 % compared with the end of the prior year. Almost all of our national companies, but in particular Greece, Poland, Hungary, and the Czech Republic, contributed to this absolute growth. We have also seen a modest rise in 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 71.1 % of our consumers.

Development of operations

Revenue, service revenue

Our Europe operating segment generated revenue of EUR 3.1 billion in the first quarter of 2025, a year-on-year increase of 3.2 %. In organic terms, revenue increased by 3.7 %. Service revenues grew by 4.4 % year-on-year, or by 5.0 % in organic terms, with our national companies in Hungary, Poland, Croatia, Greece, and Slovakia recording the strongest developments in absolute terms by country.

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. Fixed-network service revenues also increased year-on-year. 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.

Service revenues from Consumers increased in organic terms by 4.4 % against the prior-year period. 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 6.0 % against the prior-year period, with Greece, Hungary, Poland, and Croatia making the largest contribution. All product areas – mobile communications, fixed network, and IT – recorded growth. The mobile contract customer base grew by 2.2 %, with almost all of our national companies, but in particular Poland, Romania, Austria, Croatia, and Greece, contributing to this growth. In the fixed-network business, the number of broadband customers rose by 5.3 %, with Greece, the Czech republic, Poland, and Hungary making the largest contributions. Fixed-network service revenues grew on an organic basis by 2.9 % overall, with the strongest growth recorded in the segment of smaller business customers. IT revenues increased substantially by 11.0 % year-on-year in organic terms, due to an increase in business with digital infrastructure. This trend was mainly driven by Greece, Hungary, Croatia, and Poland. Revenues from security products and cloud solutions decreased due to seasonal effects.

Adjusted EBITDA AL, EBITDA AL

The sound operational revenue trend resulted in strong growth of 6.7 % in adjusted EBITDA AL in the first quarter of 2025, to EUR 1.1 billion. In organic terms, adjusted EBITDA AL grew by 7.2 %. Looking at the development by country, this increase was attributable to positive absolute trends, in particular in Hungary, the Czech Republic, Slovakia, Greece, and Poland. These increases were partially offset by declines in Romania. A positive net margin was sufficient to more than offset higher indirect costs overall. These were affected in part by higher personnel costs as a result of the inflation-induced increases in salaries. The revocation of the supplementary telecommunications tax imposed in Hungary as of January 1, 2025 had an offsetting effect.

At EUR 1.1 billion, EBITDA AL increased by 6.5 % against the prior-year period. The expense arising from special factors increased slightly year-on-year.

Development of operations in selected countries

Greece. Revenue in Greece amounted to EUR 819 million in the first quarter of 2025, a year-on-year increase of 0.8 %. In organic terms, revenues increased by 1.5 %. This development is largely due to higher service revenues, mainly from IT, but also from the mobile businesses. Revenue in the fixed-network business declined slightly year-on-year. 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 329 million, up 1.8 % year-on-year. In organic terms, the increase was 1.9 %, driven by a higher net margin.

Hungary. Revenue in Hungary totaled EUR 548 million in the first quarter of 2025, which corresponds to growth of 4.3 % despite unfavorable exchange rate effects. In organic terms, revenue was up significantly against the prior-year period by 8.7 %. This development was driven mainly by the mobile business, in part on the back of higher revenue per customer, and by higher service revenues in the fixed-network business, mainly in broadband business. Thanks to our increased investments in the build-out of fiber-optic lines, our offers have won over large numbers of customers. IT revenues also posted significant growth. Our convergence products continued to perform well, with further customer additions and corresponding revenue.

Adjusted EBITDA AL stood at EUR 221 million, 24.2 % above the level of the prior-year period. In organic terms, adjusted EBITDA AL grew by 29.5 %. 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 first quarter of 2025, revenue in Poland totaled EUR 423 million, an increase of 7.1 %. Excluding positive exchange rate effects, revenue increased by 3.8 %. Mobile service revenues recorded the strongest growth here, driven by a growing higher contract customer base. Broadband revenues from the fixed-network business also posted significant increases, likewise as a result of a growing customer base. The IT business recorded much higher revenue growth. The number of FMC customers increased substantially again, with a corresponding positive impact on revenues.

Adjusted EBITDA AL stood at EUR 113 million, 7.9 % above the level of the prior-year period. In organic terms, adjusted EBITDA AL grew by 4.7 %, 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 308 million in the first quarter of 2025, an increase of 2.3 % against the level of the prior-year period. Service revenues increased by 2.6 %, mainly due to increases in the fixed network business, particularly the broadband and TV businesses. Mobile revenues also recorded positive growth rates, driven by growth in the respective customer bases. The number of FMC customers likewise grew in the reporting period with corresponding revenues. This was offset by slight declines in IT revenues.

Adjusted EBITDA AL increased by 4.7 % year-on-year to EUR 137 million, on the back of a higher net margin driven by higher mobile and fixed-network service revenues. This was partially offset by an increase in indirect costs.

Austria. Revenue generated in Austria increased by 1.5 % to EUR 367 million in the first quarter of 2025. This development was driven by higher service revenues from the mobile business on account of an increase in the customer base. The broadband business also recorded growth as a result of a slightly larger customer base and higher revenue per customer. The number of FMC customers grew in the reporting period with corresponding revenues. Revenue in the IT business remained stable.

Adjusted EBITDA AL increased by 1.4 % year-on-year to EUR 140 million. These earnings are driven by higher revenue and a one-time effect in direct costs, offset by higher indirect costs, in part for personnel and energy.

Profit/loss from operations (EBIT)

In our Europe operating segment, EBIT increased by 13.9 % in the first quarter of 2025 to EUR 616 million, mainly due to the 5.8 % increase in EBITDA. Depreciation, amortization and impairment losses were down slightly on the prior-year period.

Cash capex (before spectrum investment), cash capex

In the first quarter of 2025, our Europe operating segment reported cash capex (before spectrum investment) of EUR 504 million, up 4.3 % year-on-year. This increase is attributable to both higher investments and the timing of their allocation. Cash capex increased by 18.9 % compared with the prior-year period due to cash outflows for the acquisition of spectrum in Poland. We continue to invest in the provision of broadband, fiber-optic technology, and 5G as part of our integrated network strategy.