Q1 2026 NOS SGPS SA Earnings Call Transcript
Key Points
- Revenue growth driven by strong IT expansion and solid Audiovisuals and Cinema performance, offsetting competitive pressure in Telco.
- EBITDA increased by 2.1% with disciplined cost management and structurally lower CapEx, leading to healthy cash flow generation.
- Credit rating upgraded to BBB by S&P, reflecting a stable financial outlook.
- Recurring free cash flow grew 22% to almost EUR80 million, indicating strong operational performance.
- The SCAILE program is effectively scaling AI across NOS, enhancing efficiency and productivity in sales and customer service.
- Telco revenues declined slightly by 0.2%, mainly impacted by the wholesale unit.
- B2C segment recorded a decline of 0.7%, driven by competitive pressure and the impact of Storm Kristin.
- Mobile prepaid declined by 65,000, reflecting competitive pressure in the low-cost segment.
- ARPU is impacted by the increasing weight of the second brand, WOO, within the customer base.
- Storms in Portugal had some impact on CapEx, although not material enough to affect the declining trend.
Good morning, everyone. Welcome to NOS first quarter 2026 results conference call. Our CFO, Luis, will guide you through a brief presentation, and then we have the executive team in the room. We will be happy to take your questions after the presentation. Over to you, Luis.
Thank you, Pedro. Good morning to all, and welcome to NOS's first quarter conference call. We will begin, as usual, with the main highlights of this first quarter. Revenue growth driven by strong IT expansion and solid Audiovisuals and Cinema performance, more than offsetting competitive pressure in Telco. EBITDA performance reflects the disciplined cost management and structurally lower CapEx, delivering healthy cash flow generation -- and the balance sheet remains strong with a 1.4 times leverage ratio and the credit rating upgrade to BBB by S&P, reflecting a stable financial outlook.
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