Half Year 2026 Orange Polska SA Earnings Call Transcript
Key Points
- Orange Polska SA (STU:TPA1) delivered strong H1 2026 results with revenue growth exceeding 7% and EBITDAaL growth exceeding 6%, leading to an upgraded full-year guidance.
- The company achieved excellent commercial momentum, leading the market in mobile number portability for the second consecutive quarter with net gains of 80,000 customers in Q2.
- B2B segment showed exceptional performance, with IT&IS revenues surging 50% in Q2, driven by a strong accumulation of contracts and a landmark first major defense sector contract.
- Wholesale revenues grew by a double-digit percentage in Q2 (17%), demonstrating robust momentum despite the absence of the expired national roaming contract.
- The company's cost transformation program is progressing well, with indirect costs remaining flat year-over-year, enabling high operating leverage and strong cash flow generation (organic cash flow up 43% in H1).
- The exceptional Q2 revenue growth was partly fueled by non-recurring large deals in IT&IS and wholesale, which carry lower margins than core telecom services, and management expects a slowdown in these areas in H2.
- The company faces intense competition in the fiber market, which could pressure future customer acquisition and pricing power.
- Higher depreciation charges, linked to the 5G license acquisition and a shift in CapEx structure towards assets with shorter useful lives, are partially offsetting EBITDA gains.
- The strong H1 cash flow was supported by higher proceeds from real estate disposals, a non-recurring source of income that is expected to diminish in future years.
- Management refrained from raising its medium-term EBITDA guidance, citing the need for additional sizable big deals to repeat this year's performance, and noted a PLN400 million cash outlay for spectrum renewal in 2027.
Good morning. Thank you for standing by. Let me welcome you to Orange Polska conference call in which we will summarize our results in the second-quarter and the first half of 2026. My name is Leszek Iwaszko, and I'm in-charge of Investor Relations. The format of the call will be a presentation made by management team followed by a Q&A session. Speakers for today will be CEO of Orange Polska, Liudmila Climoc; and Jacek Kunicki, CFO.
Let me now pass the floor to Liudmila to begin the presentation.
Thank you, Leszek. Good morning, and welcome to our conference summarizing second-quarter of 2026, and let's start on slide 4. I'm very pleased to share with you on our progress for the first six months of the year. Within this time, we were focused on our priorities set in Lead the Future strategy, pursuing brave commercial agenda, investing in our network and implementing transformation initiatives for our operations.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
