Europe

Customer development

Total

Most customer base indicators in the Europe operating segment showed a positive development against the end of 2024. Our convergent product portfolio generated growth of 3.8 % in FMC customers thanks to ongoing demand. The number of mobile customers increased slightly. The number of broadband customers increased by 1.2 %. 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

In our Europe operating segment, the overall number of mobile customers as of June 30, 2025 increased by 0.7 % against the prior-year-end to 50.1 million. The number of contract customers increased by 1.2 %. 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 the second quarter of 2025, our national companies covered 82.3 % of the population in our European footprint on average with 5G, a further increase against the prior year.

The prepaid customer base stabilized at the level of the end of the prior year, despite the loss of an M2M corporate customer in Slovakia. We convinced a portion of our prepaid customers to switch to higher-value contract rate plans.

Fixed network

The broadband business increased by 1.2 % compared with the end of 2024 to a total of 7.3 million customers. This growth, mainly driven by the national companies in Poland and the Czech Republic, offset the decline in Hungary, where the fixed-network customer base decreased due to the sale of a subsidiary. By continuing to invest in optical fiber, we are systematically building out our fixed-network infrastructure. As of the end of the second quarter of 2025, around 10.7 million households (40.6 % coverage) have access to our high-performance fiber-optic network offering gigabit speeds. Compared with the end of 2024, we have won around 600 thousand new subscriptions. As of the end of the first half of 2025, the number of fixed-network lines subscribed to declined slightly by 0.5 % compared with the end of 2024 to 8.0 million.

The TV and entertainment business had a total of 4.4 million customers as of June 30, 2025, which was almost on a par with the level at 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 June 30, 2025, we had 8.5 million FMC customers; this corresponds to growth of 3.8 % 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 71.9 % of our consumers.

Development of operations

Revenue, service revenue

Our Europe operating segment generated revenue of EUR 6.2 billion in the first half of 2025, a year-on-year increase of 2.3 %. In organic terms, revenue increased by 2.9 %. Service revenues grew by 3.1 % year-on-year, or by 3.8 % in organic terms, with our national companies in Hungary, Poland, Greece, Croatia, and the Czech Republic 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 3.5 % 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 4.5 % against the prior-year period, with Greece (IT), Hungary (mobile communications and fixed network), and Poland (mobile communications and IT) making the largest contributions. All product areas – mobile communications, fixed network, and IT – recorded year-on-year growth. The mobile contract customer base grew by 2.3 %, with almost all of our national companies, but in particular Poland, Romania, and Austria, contributing to this growth. In the fixed-network business, the number of broadband customers rose by 4.6 %, with Greece, the Czech republic, Poland, and Hungary making the largest contributions. Fixed-network service revenues grew by 2.7 % overall. IT revenues increased substantially by 8.0 % year-on-year in organic terms, due to an increase in business with digital infrastructure. This trend was mainly driven by Greece and Poland. The decline in revenues with cloud solutions due to seasonal effects was partially offset by growth of 3.5 % in security solutions.

Adjusted EBITDA AL, EBITDA AL

The sound operational revenue trend resulted in strong growth of 6.2 % in adjusted EBITDA AL in the first half of 2025, to EUR 2.3 billion. In organic terms, adjusted EBITDA AL grew by 6.7 %. Looking at the development by country, this increase was attributable to positive absolute trends, in particular in Hungary, the Czech Republic, Poland, and Greece. These increases were partially offset by declines in Romania. A positive net margin was sufficient to more than offset the slight increase in indirect costs overall. These were affected in part by higher personnel costs as a result of the inflation-induced increases in salaries. By contrast, the revocation of the supplementary telecommunications tax imposed in Hungary as of January 1, 2025 had an offsetting effect.

At EUR 2.3 billion, EBITDA AL increased by 5.6 % against the prior-year period. The expense arising from special factors increased year-on-year.

Development of operations in selected countries

Greece. Revenue in Greece amounted to EUR 1.7 billion in the first half of 2025, a year-on-year increase of 0.9 %. In organic terms, revenues increased by 1.6 %. 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 partially offset these declines. Our convergence products continued to perform well, with further customer additions and corresponding revenue.

Adjusted EBITDA AL stood at EUR 662 million, up 1.9 % year-on-year. In organic terms, the increase was 2.0 %, driven by a higher net margin and lower indirect costs.

Hungary. Revenue in Hungary totaled EUR 1.1 billion in the first six months of 2025, an increase of 0.4 %. Excluding negative exchange rate effects, revenue increased by 4.4 %. 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 the fixed-network business, mainly in broadband business. IT revenues also posted growth. Our convergence products continued to perform well, with further customer additions and corresponding revenue.

Adjusted EBITDA AL stood at EUR 449 million, 15.6 % above the level of the prior-year period. In organic terms, adjusted EBITDA AL grew by 20.4 %. 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 first half of 2025, revenue in Poland totaled EUR 857 million, an increase of 7.5 %. Excluding positive exchange rate effects, revenue increased by 5.4 %. The growth was mainly driven by mobile service revenues on the back of an increase in the number of contract customers. 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 234 million, 7.9 % above the level of the prior-year period. In organic terms, adjusted EBITDA AL grew by 5.8 %, 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 622 million in the first six months of 2025, an increase of 2.2 % against the prior-year period. Service revenues increased by 2.8 %, 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 period, with corresponding revenues. Declines in IT revenues had an offsetting effect.

Adjusted EBITDA AL increased substantially by 11.3 % year-on-year to EUR 274 million, due to a higher net margin. In addition, a negative one-time effect in the prior year resulting from the termination of a business relationship also contributed to this increase. This was partially offset by an increase in indirect costs.

Austria. Revenue generated in Austria increased by 1.8 % to EUR 737 million in the first half of 2025. 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 period, with corresponding revenues. Revenue in the IT business remained stable.

Adjusted EBITDA AL increased by 1.5 % year-on-year to EUR 282 million. These earnings are driven by a higher net margin. This was partially offset by an increase in indirect costs.

Profit/loss from operations (EBIT)

Our Europe operating segment recorded an increase in EBIT of 9.9 % to EUR 1.2 billion in the first six months of 2025, mainly due to the 6.2 % increase in EBITDA. Depreciation, amortization and impairment losses were up EUR 39 million against the prior-year level, mainly due to an impairment loss recognized on non-current assets in the Romanian mobile business, and partially offset the increase in EBITDA. Depreciation and amortization remained stable.

Cash capex (before spectrum investment), cash capex

In the first half of 2025, our Europe operating segment reported cash capex (before spectrum investment) of EUR 962 million, up slightly year-on-year. This increase is attributable to both higher investments and their intra-year allocation. Cash capex increased by 20.5 % compared with the prior-year period due to 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.