Europe

Customer development

Total

As of March 31, 2026, excluding the effect from a change in definition in Poland and Greece, the Europe operating segment saw a positive trend in the number of customers compared with the end of 2025, recording an increase of 0.5 % in the number of mobile contract customers and of 0.7 % in the number of broadband customers. Our convergent product portfolio generated substantial growth of 1.4 % 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 46.7 million mobile customers as of March 31, 2026. The number fell by 1.0 % compared with the end of the prior year. In Poland and Greece, a change in definition resulted in some mobile customers being reclassified as fixed-network customers. Without this effect, the number of mobile customers declined slightly by 0.5 %.

The number of contract customers decreased slightly by 0.5 %. Excluding the effect from the change in definition, it increased slightly by 0.5 %. Overall, contract customers accounted for 54.5 % 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 March 31, 2026, our national companies covered 92.3 % of the population in our European footprint on average with 5G, an increase against the prior year.

The prepaid customer base declined by 1.6 % against the end of the prior year, especially in Poland due to the deactivation of inactive customers. 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 4.1 % compared with the end of 2025 to a total of 7.7 million customers. Excluding the effect of the change in definition, growth was 0.7 %. This growth, mainly driven by the national companies in Poland, the Czech Republic, and Hungary, offset the decline in Austria, Greece, and Croatia. By continuing to invest in optical fiber, we are systematically building out our fixed-network infrastructure. As of March 31, 2026, 11.5 million households (43.6 % coverage) have access to our high-performance fiber-optic network offering gigabit speeds. The number of homes passed grew by around 150 thousand compared with the end of 2025. As of the end of the first quarter of 2026, the number of fixed-network lines subscribed to increased by 5.3 % compared with the end of 2025 to 8.4 million, as a result of the change in definition. Excluding this effect, the number of lines remained unchanged against the level at the end of the prior year.

The TV and entertainment business had a total of 4.5 million customers as of March 31, 2026, a slight increase of 0.7 % against the end of the prior year. The TV market is already saturated in many of the countries in our operating 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, 2026, we had 9.0 million FMC customers. This represents an increase of 1.4 % in the customer base compared with the end of the prior year. Almost all of our national companies, but in particular Poland, Greece, and Hungary, 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. Around 70 % of our consumers use our service app.

Development of operations

Revenue, service revenue

Our Europe operating segment generated revenue of EUR 3.1 billion in the reporting period, a year-on-year increase of 1.2 %. In organic terms, i.e., excluding the sale of the Romanian mobile business and net positive exchange rate effects, revenue increased by 2.1 %. Service revenues grew by 5.0 % year-on-year, or by 5.4 % in organic terms. Almost all national companies contributed to this growth, with our national companies in Greece, Poland, and the Czech Republic recording the strongest developments in absolute terms.

Organic growth in service revenues was mainly due to the growth in the IT business. The mobile communications business likewise made a positive contribution to revenue, driven by a larger contract customer base and higher revenue per customer. Furthermore, 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. Declines in the wholesale business and in non-service revenues had an offsetting effect.

Service revenues from Consumers increased in organic terms by 4.0 % 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 11.2 % year-on-year, with Greece (IT), Slovakia (fixed network and IT), and Poland (mobile communications) making the largest contribution. All product areas recorded year-on-year growth. The mobile contract customer base grew by 1.4 %. In the fixed-network business, the number of broadband customers rose by 3.9 %. Fixed-network service revenues grew by 3.0 % overall. IT revenues increased substantially by 33.5 % year-on-year, due to an increase in business with digital infrastructure.

Adjusted EBITDA AL, EBITDA AL

The sound operational revenue trend contributed to strong growth of 4.8 % in adjusted EBITDA AL in the reporting period, to EUR 1.2 billion. In organic terms, adjusted EBITDA AL grew by 3.5 %. Looking at the development by country, this increase was attributable to positive absolute trends, in particular in Hungary, Poland, Greece, and the Czech Republic. Overall, the increase in earnings for the Europe operating segment is mainly attributable to the positive net margin. Indirect costs were up slightly on the prior-year period.

At EUR 1.2 billion, EBITDA AL increased by 4.8 % against the prior-year period. The net expense arising from special factors was more or less on a par with the prior-year level.

Development of operations in selected countries

Greece. Revenue in Greece amounted to EUR 859 million in the first quarter of 2026, a year-on-year increase of 4.9 %. This development is largely due to higher service revenues, mainly from IT, but mobile service revenues also increased substantially. Fixed-network revenues recorded slight year-on-year growth, as a result of higher revenues in the TV and broadband business. This was offset by the expected decline in revenues in traditional voice telephony, as well by declines in the wholesale business. Non-service revenues recorded a substantial decline, driven by the fall in transit revenue for voice telephony. Our convergence products continued to perform well, with further customer additions and corresponding revenue.

Adjusted EBITDA AL stood at EUR 338 million, up 2.8 % year-on-year, mainly driven by a higher net margin.

Hungary. Revenue in Hungary totaled EUR 569 million in the reporting period, a slight year-on-year increase of 3.8 %. Excluding positive exchange rate effects, revenue decreased moderately by 0.8 %. This decline was mainly driven by IT revenues, which were lower than in the prior-year period owing to seasonal effects. Growth in the mobile business had an offsetting effect, 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 significantly higher service revenues in broadband business. The TV business also contributed to this revenue trend. Non-service revenues decreased on account of declining mobile terminal equipment revenues. Our convergence products continued to perform well, with further customer additions and corresponding revenue.

Adjusted EBITDA AL stood at EUR 245 million, a substantial 10.9 % above the level of the prior-year period. In organic terms, the increase was 5.8 %, driven by a significantly higher net margin.

Poland. In the reporting period, revenue in Poland totaled EUR 430 million, an increase of 1.8 %. Excluding negative exchange rate effects, revenue increased by 2.6 %. The growth was mainly driven by mobile service revenues on the back of an increase in the number of contract customers and higher revenue per customer. Broadband and TV revenues from the fixed-network business also posted significant increases, likewise as a result of a growing customer base and higher revenue per customer. IT revenues remained stable. 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 122 million, 8.1 % above the level of the prior-year period. In organic terms, adjusted EBITDA AL grew by 9.1 %, due to a decline in indirect costs as well as a higher net margin.

Czech Republic. In the Czech Republic, we generated revenue of EUR 330 million in the first quarter of 2026, an increase of 7.0 % against the prior-year period. Excluding positive exchange rate effects, revenue increased by 3.8 %. Service revenues increased, due in part to increases in the fixed network business, particularly the broadband and TV businesses. Mobile revenues also continued to post positive growth rates. Revenues in both business areas increased on the back of growth in the respective customer bases. The number of FMC customers likewise grew in the reporting period, with corresponding revenues. IT revenues also increased.

Adjusted EBITDA AL increased by 9.1 % year-on-year to EUR 149 million. In organic terms, adjusted EBITDA AL grew by 5.8 %, due to a higher net margin.

Austria. Revenue decreased slightly by 1.1 % year-on-year in the reporting period to EUR 363 million, mainly as a result of lower non-service revenues from roaming. Service revenues remained stable. Revenues from FMC customers increased in the reporting period.

Adjusted EBITDA AL declined by 4.3 % year-on-year to EUR 134 million, driven by a lower net margin.

Profit/loss from operations (EBIT)

In our Europe operating segment, EBIT increased significantly by 7.4 % in the reporting period to EUR 662 million, 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 period, our Europe operating segment reported a slight year-on-year decrease in cash capex (before spectrum investment) to EUR 476 million. By contrast, cash capex was up slightly compared with the prior-year period, due to higher cash outflows for the renewal of spectrum licenses in Poland. We continue to invest in the provision of broadband, fiber-optic technology, and 5G as part of our integrated network strategy.