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 5.5 % in FMC customers thanks to ongoing demand. The number of mobile customers increased by 2.1 %. The number of broadband customers increased by 2.0 %. 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 September 30, 2025 increased by 2.1 % against the prior-year-end to 50.7 million. The number of contract customers increased by 1.7 %. All national companies with the exception of Romania and Hungary contributed to this growth, especially Poland, Greece, the Czech Republic, and Croatia. Overall, contract customers accounted for 53.7 % 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 third quarter of 2025, our national companies covered 89.3 % of the population in our European footprint on average with 5G, a substantial increase against the prior year.

The prepaid customer base increased by 2.5 % against the end of the prior year, especially in Poland due to a new M2M corporate customer. We also convinced a portion of our prepaid customers to switch to higher-value contract rate plans. This development more than offset the decline in Slovakia and other countries.

Fixed network

The broadband business increased by 2.0 % compared with the end of 2024 to a total of 7.3 million customers. This growth, mainly driven by the national companies in Poland, the Czech Republic, and Greece, offset the decline in Hungary and Austria. In Hungary, 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 third quarter of 2025, around 10.9 million households (41.5 % coverage) have access to our high-performance fiber-optic network offering gigabit speeds. The number of homes passed grew by around 800 thousand compared with the end of 2024. As of the end of the third quarter of 2025, the number of fixed-network lines subscribed to declined slightly by 0.6 % 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 September 30, 2025, which was slightly up 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 September 30, 2025, we had 8.6 million FMC customers; this corresponds to growth of 5.5 % compared with the end of the prior year. All of our national companies, but in particular Poland, Greece, Hungary, and the Czech Republic, contributed to this 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 9.3 billion in the first nine months of 2025, a year-on-year increase of 2.3 %. In organic terms, revenue increased by 2.7 %. Service revenues grew by 3.2 % year-on-year, or by 3.6 % in organic terms. All national companies apart from Romania contributed to this growth, with our national companies in Greece, Poland, Hungary, Croatia, and the Czech Republic 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. 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. Declines in revenue from mobile terminal equipment and in wholesale business had an offsetting effect.

Service revenues from Consumers increased in organic terms by 3.3 % 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 4.3 % against the prior-year period, with Greece (mobile communications and IT), Hungary (mobile communications and fixed network), and Croatia (fixed network and IT) making the largest contributions. All product areas recorded year-on-year growth. The mobile contract customer base grew by 2.0 %. In the fixed-network business, the number of broadband customers rose by 3.9 %. Fixed-network service revenues grew by 2.4 % overall. IT revenues increased substantially by 8.3 % 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 first nine months of 2025, to EUR 3.5 billion. In organic terms, adjusted EBITDA AL grew by 5.9 %. Looking at the development by country, this increase was attributable to positive absolute trends, in particular in Hungary, the Czech Republic, Poland, and Greece. Only Romania recorded a decline. Overall, the increase in earnings for the Europe operating segment is mainly attributable to the positive net margin. Indirect costs remained stable at the level of the prior-year period: The revocation of the supplementary telecommunications tax imposed in Hungary as of January 1, 2025 offset, among other things, the general increase in personnel costs as a result of inflation-related salary increases.

At EUR 3.5 billion, EBITDA AL increased by 5.1 % against the prior-year period. The expense arising from special factors increased year-on-year due to impairment losses recognized on right-of-use assets in the Romanian mobile business.

Development of operations in selected countries

Greece. Revenues in Greece amounted to EUR 2.5 billion in the first nine months of 2025, a year-on-year increase of 2.3 %. In organic terms, revenues increased by 2.9 %. 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 1.0 billion, 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 1.7 billion in the first three quarters of 2025, a slight year-on-year decrease of 0.5 %. Excluding negative exchange rate effects, revenue increased by 2.5 %. 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 680 million, 14.7 % above the level of the prior-year period. In organic terms, adjusted EBITDA AL grew by 18.4 %. 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 nine months of 2025, revenue in Poland totaled EUR 1.3 billion, an increase of 5.4 %. Excluding positive exchange rate effects, revenue increased by 3.8 %. 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 also recorded revenue growth. The number of FMC customers increased substantially again, with a corresponding positive impact on revenues.

Adjusted EBITDA AL stood at EUR 360 million, 8.4 % above the level of the prior-year period. In organic terms, adjusted EBITDA AL grew by 6.8 %, 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 951 million in the first three quarters of 2025, an increase of 3.7 % against the prior-year period. Excluding positive exchange rate effects, revenue increased by 2.7 %. Service revenues increased by 3.0 % 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 period, with corresponding revenues. Declines in IT revenues had an offsetting effect.

Adjusted EBITDA AL increased substantially by 10.0 % year-on-year to EUR 408 million. In organic terms, adjusted EBITDA AL grew by 8.9 %, 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 generated in Austria grew by 1.7 % to reach EUR 1.1 billion in the first nine months 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 1.3 % year-on-year to EUR 433 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 7.6 % to EUR 1.9 billion in the first three quarters of 2025, mainly due to the 5.6 % increase in EBITDA. Depreciation, amortization and impairment losses were up EUR 70 million against the prior-year level, mainly due to impairment losses 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 nine months of 2025, our Europe operating segment reported cash capex (before spectrum investment) of EUR 1.4 billion, up slightly year-on-year. This increase is attributable to both higher investments and their intra-year allocation. Cash capex increased by 13.4 % 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.