Greece's OTE posts 3.1% rise in third-quarter adjusted core earnings

Oct 30 (Reuters) - Greek telecoms operator OTE reported a 3.1% year-on-year rise in third-quarter adjusted core earnings on Friday, helped by growth in mobile services and fibre broadband.

OTE, Greece's biggest telecoms provider, posted adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) after leases of €371.4 million ($414.7 million) in the July-September period, up from €360.1 million a year earlier.

Mobile service revenue rose 2.0% year-on-year to €296 million, supported by the continued migration of customers to higher-value postpaid contracts, while OTE added a net 48,744 postpaid subscribers during the quarter, taking its subscriber base to 3.2 million, up 7.5% year-on-year. 

The group also continued to expand its fibre network, adding a net 52,250 fibre-to-the-home (FTTH) customers in the quarter, with its FTTH subscriber base reaching 739,081, up 45.2% from a year earlier.

"Our performance in the first nine months reinforces our confidence in delivering our 2026 growth ambition," Chairman and Chief Executive Kostas Nebis said, adding that EBITDA growth accelerated further in the third quarter amid continued business momentum and progress in the group's transformation programme.

The group reiterated its 2026 guidance for adjusted EBITDA growth of about 3%, capital expenditure of around €600 million and free cash flow after leases of approximately €750 million, including certain one-off tax-related gains. Underlying free cash flow is expected at €570-€580 million.

OTE warned though that fourth-quarter comparisons would be more challenging after exceptionally strong information and communications technology growth and mobile tariff increases in the same period last year, but maintained confidence in achieving solid double-digit growth for its Systems Solutions division for the full year.

($1 = 0.8957 euros)

(Reporting by Antonis Pothitos; Editing by Joe Bavier, Kirsten Donovan)