Europe
Customer development
thousands |
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Sept. 30, |
June 30, |
Change |
Dec. 31, |
Change |
Sept. 30, |
Change |
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Europe, total a |
Mobile customers |
49,712 |
49,287 |
0.9 |
47,853 |
3.9 |
47,949 |
3.7 |
||||
Contract customers |
27,764 |
27,588 |
0.6 |
27,222 |
2.0 |
26,976 |
2.9 |
|||||
Prepaid customers |
21,948 |
21,699 |
1.1 |
20,631 |
6.4 |
20,973 |
4.7 |
|||||
Fixed-network lines |
8,045 |
8,033 |
0.1 |
8,020 |
0.3 |
7,995 |
0.6 |
|||||
Broadband customers |
7,146 |
7,099 |
0.7 |
6,989 |
2.3 |
6,913 |
3.4 |
|||||
Television (IPTV, satellite, cable) |
4,375 |
4,334 |
0.9 |
4,283 |
2.1 |
4,246 |
3.0 |
|||||
Unbundled local loop lines (ULL)/Wholesale PSTN |
1,490 |
1,537 |
(3.1) |
1,614 |
(7.7) |
1,651 |
(9.8) |
|||||
Wholesale broadband lines |
1,167 |
1,157 |
0.9 |
1,121 |
4.1 |
1,099 |
6.2 |
|||||
Greece |
Mobile customers |
7,185 |
7,189 |
(0.1) |
7,119 |
0.9 |
7,317 |
(1.8) |
||||
Fixed-network lines |
2,587 |
2,602 |
(0.6) |
2,617 |
(1.1) |
2,615 |
(1.1) |
|||||
Broadband customers |
2,400 |
2,407 |
(0.3) |
2,405 |
(0.2) |
2,392 |
0.3 |
|||||
Romania |
Mobile customers |
3,547 |
3,601 |
(1.5) |
3,798 |
(6.6) |
3,899 |
(9.0) |
||||
Hungary |
Mobile customers |
6,389 |
6,389 |
0.0 |
6,246 |
2.3 |
6,168 |
3.6 |
||||
Fixed-network lines |
1,951 |
1,943 |
0.4 |
1,936 |
0.8 |
1,924 |
1.4 |
|||||
Broadband customers |
1,637 |
1,622 |
0.9 |
1,592 |
2.8 |
1,573 |
4.1 |
|||||
Poland |
Mobile customers |
12,738 |
12,641 |
0.8 |
12,592 |
1.2 |
12,545 |
1.5 |
||||
Fixed-network lines |
29 |
29 |
(0.7) |
29 |
(0.2) |
29 |
(0.5) |
|||||
Broadband customers |
324 |
305 |
6.2 |
260 |
24.2 |
234 |
38.3 |
|||||
Czech Republic |
Mobile customers |
6,512 |
6,502 |
0.1 |
6,523 |
(0.2) |
6,497 |
0.2 |
||||
Fixed-network lines |
806 |
789 |
2.2 |
763 |
5.6 |
752 |
7.1 |
|||||
Broadband customers |
497 |
485 |
2.4 |
463 |
7.4 |
456 |
9.0 |
|||||
Croatia |
Mobile customers |
2,589 |
2,408 |
7.5 |
2,336 |
10.9 |
2,391 |
8.3 |
||||
Fixed-network lines |
868 |
868 |
(0.1) |
870 |
(0.3) |
870 |
(0.3) |
|||||
Broadband customers |
669 |
666 |
0.4 |
661 |
1.1 |
659 |
1.5 |
|||||
Slovakia |
Mobile customers |
2,524 |
2,528 |
(0.1) |
2,525 |
0.0 |
2,503 |
0.9 |
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Fixed-network lines |
851 |
852 |
(0.1) |
860 |
(1.1) |
859 |
(1.0) |
|||||
Broadband customers |
661 |
659 |
0.4 |
657 |
0.6 |
654 |
1.1 |
|||||
Austria a |
Mobile customers |
6,345 |
6,270 |
1.2 |
4,975 |
27.5 |
4,805 |
32.0 |
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Fixed-network lines |
612 |
611 |
0.2 |
607 |
0.9 |
609 |
0.5 |
|||||
Broadband customers |
667 |
667 |
0.0 |
665 |
0.3 |
664 |
0.5 |
|||||
Other b |
Mobile customers |
1,882 |
1,759 |
7.0 |
1,738 |
8.3 |
1,824 |
3.2 |
||||
Fixed-network lines |
342 |
339 |
0.8 |
338 |
1.2 |
337 |
1.4 |
|||||
Broadband customers |
292 |
288 |
1.4 |
285 |
2.6 |
283 |
3.4 |
|||||
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Total
In the Europe operating segment, almost all key performance indicators for customer development posted improvement compared with the end of 2023. Our convergent product portfolio generated growth of 4.3 % in FMC customers thanks to ongoing demand. We are working flat out to build out our fixed-network infrastructure with state-of-the-art optical fiber. The number of broadband customers increased by 2.3 %. The number of mobile customers increased by 3.9 %. Our build-out of the 5G network is making good progress.
Mobile communications
We had a total of 49.7 million mobile customers at the end of the first nine months of 2024 – an increase of 3.9 % compared with the end of 2023. The number of contract customers increased by 2.0 %. The contract customer base grew in almost all of our national companies, but especially in Poland, Greece, Croatia, and the Czech Republic. Overall, contract customers accounted for 55.8 % 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 September 30, 2024, our national companies covered 72.4 % of the population on average with 5G, a further increase against the prior year.
The prepaid customer base grew by 6.4 % compared with the end of 2023. Since January 1, 2024, customers of a wholesale service provider have been reported as prepaid customers in Austria. Without this effect, the number of prepaid customers increased by 0.9 % year-on-year. We convinced a portion of our prepaid customers to switch to higher-value contract rate plans.
Fixed network
The broadband business increased by 2.3 % compared with the end of 2023 to a total of 7.1 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 nine months of 2024, 9.7 million households, which is around 600 thousand additional households, had access to our high-performance fiber-optic network offering gigabit speeds. The number of fixed-network lines subscribed to remained stable at 8.0 million lines as of September 30, 2024.
The TV and entertainment business had 4.4 million customers in total at the end of the first nine months of 2024, posting growth of 2.1 % compared with the end of the prior year. In the third quarter of 2024, our Greek national company reached an agreement with competitor Nova; this provides for our TV customers in Greece who subscribe to a Sports package will in future be able to watch all Novasports channels for a minimal extra charge. 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 September 30, 2024, we had 8.0 million FMC customers; this corresponds to growth of 4.3 % compared with the end of the prior year. Almost all of our national companies, but in particular in Poland, Greece, Hungary, and the Czech Republic, contributed to this growth. The customer base in Slovakia was smaller due to optimizations to the FMC product portfolio there. At the end of the first nine months of 2024, FMC customers accounted for 64.1 % of the broadband customer base. 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 70.8 % of our consumers.
Development of operations
millions of € |
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Q1-Q3 |
Q1-Q3 |
Change |
Q1 2024 |
Q2 2024 |
Q3 2024 |
Q3 2023 |
Change |
FY 2023 |
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---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenue |
|
9,142 |
8,678 |
5.3 |
2,959 |
3,073 |
3,110 |
2,995 |
3.9 |
11,790 |
||||||
Greece |
|
2,491 |
2,334 |
6.7 |
812 |
846 |
833 |
812 |
2.6 |
3,189 |
||||||
Romania |
|
199 |
209 |
(4.8) |
66 |
67 |
66 |
71 |
(6.6) |
287 |
||||||
Hungary |
|
1,663 |
1,479 |
12.4 |
525 |
564 |
573 |
513 |
11.8 |
2,031 |
||||||
Poland |
|
1,222 |
1,113 |
9.8 |
395 |
402 |
425 |
383 |
11.0 |
1,522 |
||||||
Czech Republic |
|
916 |
982 |
(6.7) |
301 |
308 |
307 |
333 |
(7.5) |
1,280 |
||||||
Croatia |
|
747 |
709 |
5.4 |
233 |
247 |
267 |
257 |
4.1 |
956 |
||||||
Slovakia |
|
630 |
602 |
4.7 |
206 |
213 |
212 |
201 |
5.3 |
825 |
||||||
Austria |
|
1,096 |
1,068 |
2.6 |
361 |
363 |
372 |
367 |
1.4 |
1,458 |
||||||
Other a |
|
234 |
240 |
(2.7) |
75 |
77 |
81 |
84 |
(2.8) |
319 |
||||||
Service revenue |
|
7,662 |
7,209 |
6.3 |
2,455 |
2,585 |
2,622 |
2,494 |
5.1 |
9,739 |
||||||
EBITDA |
|
3,685 |
3,394 |
8.6 |
1,179 |
1,206 |
1,300 |
1,197 |
8.6 |
4,496 |
||||||
Special factors affecting EBITDA |
|
(51) |
(63) |
19.1 |
(19) |
(26) |
(6) |
(18) |
63.9 |
(94) |
||||||
EBITDA (adjusted for special factors) |
|
3,735 |
3,456 |
8.1 |
1,198 |
1,231 |
1,306 |
1,215 |
7.6 |
4,590 |
||||||
EBITDA AL |
|
3,306 |
3,040 |
8.7 |
1,050 |
1,082 |
1,174 |
1,078 |
8.9 |
4,020 |
||||||
Special factors affecting EBITDA AL |
|
(51) |
(63) |
19.1 |
(19) |
(26) |
(6) |
(18) |
63.9 |
(94) |
||||||
EBITDA AL (adjusted for special factors) |
|
3,356 |
3,102 |
8.2 |
1,069 |
1,108 |
1,180 |
1,095 |
7.7 |
4,114 |
||||||
Greece |
|
1,003 |
988 |
1.5 |
323 |
327 |
353 |
348 |
1.6 |
1,325 |
||||||
Romania |
|
0 |
13 |
n.a. |
3 |
0 |
(3) |
5 |
n.a. |
17 |
||||||
Hungary |
|
593 |
443 |
33.8 |
178 |
210 |
205 |
169 |
21.5 |
600 |
||||||
Poland |
|
332 |
299 |
11.0 |
104 |
113 |
115 |
103 |
11.1 |
393 |
||||||
Czech Republic |
|
371 |
354 |
4.8 |
131 |
115 |
125 |
108 |
15.0 |
470 |
||||||
Croatia |
|
287 |
274 |
4.9 |
86 |
87 |
114 |
111 |
3.2 |
367 |
||||||
Slovakia |
|
294 |
255 |
15.1 |
96 |
103 |
95 |
85 |
11.1 |
350 |
||||||
Austria |
|
427 |
411 |
3.8 |
138 |
140 |
149 |
148 |
0.7 |
529 |
||||||
Other a |
|
50 |
65 |
(23.0) |
10 |
12 |
28 |
19 |
46.1 |
61 |
||||||
EBITDA AL margin |
% |
36.7 |
35.8 |
|
36.1 |
36.0 |
37.9 |
36.6 |
|
34.9 |
||||||
Depreciation, amortization and impairment losses |
|
(1,887) |
(1,880) |
(0.4) |
(638) |
(634) |
(615) |
(629) |
2.3 |
(2,524) |
||||||
Profit (loss) from operations (EBIT) |
|
1,798 |
1,513 |
18.8 |
541 |
571 |
685 |
567 |
20.8 |
1,973 |
||||||
EBIT margin |
% |
19.7 |
17.4 |
|
18.3 |
18.6 |
22.0 |
18.9 |
|
16.7 |
||||||
Cash capex |
|
(1,430) |
(1,529) |
6.4 |
(484) |
(497) |
(449) |
(476) |
5.6 |
(2,049) |
||||||
Cash capex (before spectrum investment) |
|
(1,389) |
(1,322) |
(5.0) |
(483) |
(457) |
(449) |
(433) |
(3.6) |
(1,766) |
||||||
|
Revenue, service revenue
Our Europe operating segment generated revenue of EUR 9.1 billion in the first nine months of 2024, a year-on-year increase of 5.3 %. In organic terms, revenue increased by 5.5 %. Service revenues grew by 6.3 % year-on-year, or by 5.9 % in organic terms.
The organic growth in service revenues was due on the one hand to the strong performance of the mobile business on the back of a larger contract customer base and higher revenue per customer in several countries. On the other hand, 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. In addition to higher revenues from wholesale, the IT business also made a positive revenue contribution. Regulatory interventions such as the reduction in termination rates had a negative impact on our organic development of revenue in the reporting period. Contract customer additions also had positive effects on terminal equipment revenues.
All countries apart from Romania contributed to the growth in service revenue in organic terms, with our national companies in Hungary, Greece, Poland, and Slovakia recording the strongest development in absolute terms by country.
Service revenues from Consumers increased in organic terms by 5.5 % year-on-year. In mobile communications, both service revenues and mobile terminal equipment sales were up. 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. The higher number of FMC customers additionally had a positive impact on revenue.
Service revenues from Business Customers grew on an organic basis by 7.7 % against the prior-year period, with Greece, Hungary, Croatia, and Poland making the largest contribution. All product areas – mobile communications, fixed network, and systems solutions – recorded growth. The mobile contract customer base grew by 2.0 %, with almost all of our national companies, but in particular Poland, Romania, Austria, and Greece contributing to this growth. In the fixed-network business, the number of broadband customers rose by 5.7 %. Fixed-network revenues grew by 3.8 % overall, with the strongest growth recorded in the segment of smaller business customers. This offset the decline in voice telephony revenues in the corporate customer segment in Greece. IT revenues grew strongly compared with the prior-year period by 17.0 %, due to an increase in systems solutions business and data communication, especially in connection with EU-funded projects in Greece’s public sector. Digital Infrastructure developed positively as a result of the expansion of capacities and strong growth in the cloud and security solutions business.
Adjusted EBITDA AL, EBITDA AL
The sound operational development in the mobile, fixed-network, and IT businesses more than offset the inflation-induced cost increases. This led to strong year-on-year growth of 8.2 % in adjusted EBITDA AL to EUR 3.4 billion in the first nine months of 2024. In organic terms, adjusted EBITDA AL grew by 8.4 %, with a positive net margin sufficient to more than offset higher indirect costs that resulted primarily from the inflation-induced increase in salaries.
Looking at the development by country, the increase in adjusted organic EBITDA AL was attributable to positive absolute trends, in particular at our national companies in Hungary, Slovakia, the Czech Republic, Greece, and Austria. These increases were partially offset by declines in Romania.
At EUR 3.3 billion, EBITDA AL increased by 8.7 % against the prior-year period. The expense arising from special factors decreased year-on-year.
Development of operations in selected countries
Greece. Revenues in Greece amounted to EUR 2.5 billion in the first nine months of 2024, a significant year-on-year increase of 6.7 %. In organic terms, revenues increased by 6.8 %. This development is largely due to higher service revenues, mainly from IT and wholesale, but also from the mobile, broadband, and TV businesses. However, mobile revenues were affected by termination rate cuts imposed by the regulatory authority. Traditional voice telephony revenues continued to decline in line with expectations. By contrast, terminal equipment revenues from contract customer additions contributed to the growth in revenue. Our convergence products performed well, with further customer additions and corresponding revenue.
Adjusted EBITDA AL stood at EUR 1.0 billion, up 1.5 % year-on-year, driven by a higher net margin. Higher indirect costs, e.g., for energy, reduced the positive effect.
Hungary. Revenues in Hungary totaled EUR 1.7 billion in the first three quarters of 2024, which corresponds to substantial growth of 12.4 % despite unfavorable exchange rate effects. In organic terms, revenue was up against the prior-year period by 15.4 %. This development was driven mainly by the fixed network business, in part on the back of further growth in the customer base, and by higher mobile service revenues. IT revenues also posted significant growth. Thanks to our increased investments in the build-out of fiber-optic lines, our offers have won over large numbers of customers. This growth in the customer base additionally drove an increase in terminal equipment sales. Our convergence products also continued to perform well, with further customer additions and corresponding revenue.
Adjusted EBITDA AL stood at EUR 593 million, 33.8 % above the prior-year level. In organic terms, adjusted EBITDA AL grew by 37.7 %. This marked increase was due to a significantly higher net margin from the positive development in operating business, as well as to the repeal of the special tax levied on owners of telecommunications cables (utility tax).
Poland. In the first nine months of 2024, revenue in Poland totaled EUR 1.2 billion, an increase of 9.8 %. Excluding positive exchange rate effects, revenue increased by 3.2 %. Mobile service revenues recorded the strongest growth. However, mobile revenues were affected by termination rate cuts imposed by the regulatory authority. Broadband revenues from the fixed-network business also posted significant increases. Both trends are the result of growth in the respective customer bases. The number of FMC customers increased substantially again, with a corresponding positive impact on revenues. This was partially offset by lower revenues from the IT business. The decline in other revenues is predominantly attributable to a positive one-time effect in the prior year.
Adjusted EBITDA AL stood at EUR 332 million, 11.0 % above the prior-year level. In organic terms, adjusted EBITDA AL grew by 4.4 %, due to a higher net margin, which more than offset the increase in indirect costs.
Czech Republic. Revenues in the Czech Republic stood at EUR 916 million in the first three quarters of 2024, down by 6.7 % against the prior-year period. Excluding negative exchange rate effects, the decrease was 1.8 %. Other revenues declined as a result of the termination of a business relationship. Service revenues were up 2.8 % in organic terms, mainly due to increases in the mobile, broadband, and TV businesses, driven by growth in the respective customer bases. However, mobile revenues were affected by termination rate cuts imposed by the regulatory authority. The number of FMC customers also grew in the reporting period. IT revenues declined.
Adjusted EBITDA AL increased by 4.8 % year-on-year to EUR 371 million. In organic terms, earnings grew by 10.4 % on the back of a higher net margin driven by higher mobile and fixed-network service revenues.
Austria. Revenue generated in Austria grew by 2.6 % to reach EUR 1.1 billion in the first nine months of 2024. In organic terms, the increase was 2.4 %. This development was driven by higher service revenues from mobile and broadband businesses on account of increases in the respective customer bases. However, mobile revenues were affected by termination rate cuts imposed by the regulatory authority. The number of FMC customers also grew in the reporting period, contributing to the increase in service revenues. Revenue from IT business increased slightly.
Adjusted EBITDA AL increased by 3.8 % year-on-year to EUR 427 million. In organic terms, earnings grew by 3.6 %, driven mainly by a revenue-related increase in the net margin, which was partially offset by higher indirect costs.
Profit/loss from operations (EBIT)
Our Europe operating segment recorded an increase in EBIT of 18.8 % to EUR 1.8 billion in the first three quarters of 2024, mainly due to the 8.6 % increase in EBITDA. Depreciation, amortization and impairment losses remained stable.
Cash capex (before spectrum investment), cash capex
In the first nine months of 2024, our Europe operating segment reported cash capex (before spectrum investment) of EUR 1.4 billion, up 5.0 % year-on-year. This increase is attributable to both higher investments and the timing of their allocation. Cash capex decreased by 6.4 % due to lower payments for spectrum compared with the prior-year period. We continue to invest in the provision of broadband, fiber-optic technology, and 5G as part of our integrated network strategy.