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Hellenic Telecom Organization S.A. (ADR) (HLTOY)
OTHER OTC:HLTOY
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Hellenic Telecom Organization SA
(OTC:HLTOY)
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Select Model
Rating:72Outperform
Price Target:
$10.50
â–²(5.95% Upside)
Action:ReiteratedDate:03/04/26
The score is driven primarily by strong financial quality (profitability, improving leverage, and durable cash generation) and a supportive valuation (moderate P/E with a high dividend yield). Earnings-call signals were broadly positive with upgraded free cash flow guidance and solid broadband/mobile momentum, partially offset by cost pressures and wholesale revenue declines. Technicals are the main drag, with the stock trading below major moving averages despite neutral momentum readings.
Positive Factors
Strong cash generation
Consistent high operating cash flow and a rebound in free cash flow provide durable internal funding for sustained fiber and 5G capex, dividends and debt reduction. Reliable cash generation improves strategic optionality and lowers refinancing risk over the next several quarters.
Improving leverage and balance-sheet resilience
Declining absolute debt and a more moderate debt-to-equity ratio indicate stronger capitalization vs prior years. Improved equity levels and lower leverage enhance financial flexibility, supporting continued network investment and cushioning cyclical revenue pressure without immediate funding stress.
FTTH and ultrafast broadband expansion
A material fiber expansion and accelerating FTTH adoption structurally increase addressable high‑ARPU customers, reduce churn and enable convergent bundles. Network densification supports sustainable broadband revenue mix and positions the company for long-term service monetization trends.
Negative Factors
Top-line pressure and uneven growth
A notable 2025 revenue decline highlights vulnerability in growth trajectory. Continued top-line weakness would strain margins, limit free cash flow expansion and constrain the pace of strategic investments, potentially forcing trade-offs between capex, dividends and deleveraging.
Declining international wholesale revenues
A structural €150m reduction in wholesale revenue erodes revenue diversification and scale benefits. Losing established international volumes increases reliance on domestic markets and higher‑margin segments, raising execution risk to replace lost cash flow through domestic or ICT growth.
Rising operating expenses and higher D&A
Higher operating costs—driven by third‑party fees in ICT—and rising depreciation from expanded capex exert persistent margin pressure. If revenue growth is uneven, increased opex and D&A will compress free cash flow conversion and limit the financial payoff from network investments.
Hellenic Telecom Organization SA (HLTOY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.57B
Dividend Yield4.81%
Average Volume (3M)26.00
Price to Earnings (P/E)27.9
Beta (1Y)0.11
Revenue Growth0.74%
EPS Growth5.97%
CountryUS
Employees9,831
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)N/A
Shares Outstanding807,706,240
10 Day Avg. Volume0
30 Day Avg. Volume26
Financial Highlights & Ratios
PEG Ratio-0.58
Price to Book (P/B)6.36
Price to Sales (P/S)4.03
P/FCF Ratio24.31
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue2.05
Enterprise Value/Gross Profit2.85
Enterprise Value/Ebitda5.22
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.94
Revenue Forecast (FY)$4.12B
Hellenic Telecom Organization SA Business Overview & Revenue Model
Company DescriptionHellenic Telecommunications Organization S.A., together with its subsidiaries, provides telecommunications and related services to businesses and individuals primarily in Greece and Romania. It operates through OTE, COSMOTE Group, and Other segments. The company offers fixed-line, Internet access, ICT, and TV production services; and international carrier services. It also provides mobile and satellite telecommunication, electronic money, e-commerce, financing, consultancy and security, real estate, insurance brokerage, training, wholesale telephony, retail, marketing, overdue accounts management, wholesale broadband, and infrastructure services. The company was incorporated in 1949 and is based in Athens, Greece.
How the Company Makes MoneyHLTOY generates revenue through multiple streams primarily derived from its core telecommunications services. Key revenue sources include subscriptions and usage fees from mobile and fixed-line voice services, broadband internet access, and television services. Additionally, HLTOY earns income from ancillary services such as cloud computing, data center operations, and wholesale telecom services provided to other operators. Significant partnerships with international technology and content providers also contribute to its earnings, allowing HLTOY to enhance its service portfolio and attract a broader customer base. Furthermore, investments in network infrastructure and technological advancements enable the company to improve service delivery and customer satisfaction, fostering long-term revenue growth.
Hellenic Telecom Organization SA Earnings Call Summary
Earnings Call Date:Nov 13, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong growth in revenue and strategic advancements, particularly in broadband and mobile segments. However, there were concerns about declining international wholesale revenues and increased operating expenses. The completion of the Romanian market exit and the expansion of broadband coverage are significant positives.Q3-2025 Updates
Positive Updates
Exit from Romanian Market
Successfully completed the exit from the Romanian market, leading to a substantial improvement in annual cash flow and enhanced shareholder value. An extraordinary dividend of EUR 40 million will be distributed.
Expansion of Ultrafast Broadband Coverage
Agreement to expand ultrafast broadband coverage in rural and semirural areas across Greece, covering an additional 480,000 homes and businesses.
5% Revenue Increase in Greece
Achieved a robust 5% increase in revenue, with strength across Mobile, TV, broadband, and ICT segments.
Strong TV Segment Growth
TV segment revenues increased by nearly 17%, with a customer base expansion of 6.7%.
FTTH and Broadband Growth
FTTH customers increased to 509,000 with 38,000 net additions in the quarter. Broadband segment achieved positive net customer additions.
Mobile Segment Growth
Mobile service revenues increased by 2.7%, with a postpaid customer base expansion of 6.4%.
ICT Segment Double-Digit Growth
ICT segment delivered almost 38% revenue increase, highlighting strong momentum.
Free Cash Flow Guidance Upgraded
Free cash flow guidance updated to EUR 530 million, reflecting the disposal of the Romanian business.
Negative Updates
International Wholesale Revenue Decline
Expected decline in international wholesale revenues as certain activities will be phased out, with a reduction of approximately EUR 150 million by the end of the fourth quarter.
Higher Operating Expenses
Total operating expenses increased by EUR 34.3 million, reflecting higher costs associated with top-line expansion, particularly third-party fees in the ICT segment.
Depreciation and Amortization Increase
Higher depreciation and amortization costs in the third quarter, although described as seasonal.
Company Guidance
In the recent OTE conference call discussing the third quarter and nine-month financial results for 2025, several key metrics and strategic initiatives were highlighted. The company reported a 5% increase in revenue in Greece, with a notable 17% growth in the TV segment and a strong performance in broadband, achieving positive net customer additions. The adoption of Fiber-to-the-Home (FTTH) services showed significant growth, with 38,000 net additions bringing the total FTTH customer base to 509,000, representing 22% of the total broadband base. Mobile service revenues also grew by 2.7%, driven by pre-to-post migrations and larger bundle adoptions. OTE's EBITDA rose by 2%, maintaining a 41% EBITDA margin, while CapEx increased by 8.2% to EUR 437 million, supporting ongoing fiber and 5G infrastructure expansions. The company updated its free cash flow guidance to EUR 530 million for 2025, reflecting the disposal of its Romanian business. Additionally, OTE emphasized its strategic focus on expanding ultrafast broadband coverage, enhancing customer value through convergent services, and leveraging AI innovations to drive future growth.Hellenic Telecom Organization SA Financial Statement Overview
Summary
Overall fundamentals are strong for a telecom: resilient profitability, improving leverage (debt trending down; debt-to-equity moderating), and consistently strong operating/free cash flow. The main offset is uneven growth, including a 2025 revenue decline and some earnings/margin softening versus prior peaks.Income Statement
Profitability is solid for a telecom, with strong operating and EBITDA profitability in recent annual periods (e.g., 2024 EBITDA margin ~39.5% and net margin ~13.3%). However, growth has turned uneven: revenue expanded modestly from 2021–2024 but declined in 2025 (annual revenue down ~6.8%), and earnings have been somewhat volatile (net income peaked in 2021/2023, softened in 2022, and stayed roughly flat in 2024–2025). Overall, this is a healthy but maturing earnings profile with recent top-line pressure.68
Positive
Balance Sheet
Leverage looks manageable and improving, with total debt trending down from 2020 to 2025 and debt-to-equity moving from higher levels in 2020–2022 toward a more moderate level by 2024 (~0.56). Equity has grown over time (notably higher in 2024–2025 versus 2022–2023), supporting balance-sheet resilience. The key watch item is that the business still carries meaningful debt typical of the sector, so sustained revenue weakness could reduce flexibility, but current capitalization appears solid.74
Positive
Cash Flow
Cash generation is a clear strength: operating cash flow has been consistently high and stable (roughly 1.1–1.3B annually), and free cash flow remains strongly positive across all years provided. While free cash flow declined in 2023–2024 versus 2022, it re-accelerated in 2025 (free cash flow up ~12.7% year over year). A softer point is that free cash flow covers only about half of net income in the years shown (mid-40% to low-50% range), indicating earnings-to-cash conversion is good but not exceptional.77
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.33B | 3.59B | 3.47B | 3.46B | 3.37B |
| Gross Profit | 1.70B | 2.76B | 2.65B | 2.65B | 2.60B |
| EBITDA | 1.37B | 1.42B | 1.40B | 1.39B | 1.43B |
| Net Income | 481.32M | 478.80M | 531.70M | 388.60M | 557.60M |
Balance Sheet | |||||
| Total Assets | 5.10B | 5.00B | 4.94B | 5.00B | 5.22B |
| Cash, Cash Equivalents and Short-Term Investments | 527.68M | 472.90M | 469.50M | 594.90M | 636.30M |
| Total Debt | 1.06B | 1.10B | 1.09B | 1.31B | 1.41B |
| Total Liabilities | 2.99B | 3.03B | 2.99B | 3.15B | 3.24B |
| Stockholders Equity | 2.11B | 1.96B | 1.94B | 1.85B | 1.97B |
Cash Flow | |||||
| Free Cash Flow | 551.73M | 502.50M | 573.70M | 677.70M | 638.20M |
| Operating Cash Flow | 1.14B | 1.10B | 1.20B | 1.32B | 1.22B |
| Investing Cash Flow | -557.97M | -584.10M | -604.80M | -638.50M | -435.50M |
| Financing Cash Flow | -528.58M | -515.30M | -716.30M | -721.40M | -746.50M |
Hellenic Telecom Organization SA Technical Analysis
Negative
9.91
Price Trends
9.83
Negative
9.71
Negative
9.50
Negative
Market Momentum
0.08
Positive
36.64
Neutral
26.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HLTOY, the sentiment is Negative. The current price of 9.91 is below the 20-day moving average (MA) of 9.96, above the 50-day MA of 9.83, and above the 200-day MA of 9.50, indicating a bearish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 36.64 is Neutral, neither overbought nor oversold. The STOCH value of 26.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HLTOY.
Hellenic Telecom Organization SA Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $5.62B | 10.12 | 7.60% | 5.57% | 19.02% | 9.26% | |
72 Outperform | $7.57B | 27.86 | 27.57% | 4.81% | 0.74% | 5.97% | |
70 Outperform | $25.54B | 17.32 | 9.34% | 5.03% | -3.16% | 4.70% | |
68 Neutral | $10.37B | 15.86 | 10.38% | 4.13% | 0.63% | -21.51% | |
61 Neutral | $10.13B | 29.82 | 3.10% | 5.02% | -8.16% | -52.52% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
HLTOY
Hellenic Telecom Organization SA
9.36
1.46
18.43%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.