NOS SGPS S A : , SGPS, SA informs on 1H23 Consolidated Management Report and Accounts

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1H23 Highlights

Table 1.

	1H23 Highlights	1H22	1H23				1H23 / 1H22
	Operating Highlights ('000)
	Convergent + Integrated Customers	1,052.1	1,114.0	5.9%
	Fixed Convergent + Integrated Customers as % of Fixed Access	65.8%	68.4%				2.6pp
	Customers
	Broadband RGUs	1,501.5	1,534.5	2.2%
	Fixed Pay TV RGUs	1,411.3	1,447.3	2.5%
	Post-Paid mobile RGUs	3,432.5	3,740.0		9.0%
	Residential ARPU / Unique Subscriber With Fixed Access (Euros)	47.5	49.8	4.9%
	Homes Passed	5,176.4	5,424.8		4.8%
	% FttH	56.0%	69.3%				13.3pp
	Financial Highlights (Millions of Euros)
	Consolidated Revenues	742.0	775.2	4.5%
	Consolidated EBITDA	322.3	352.6	9.4%
	Consolidated EBITDA Margin	43.4%	45.5%				2.0pp
	Consolidated EBITDA AL	275.1	297.0	8.0%
	Consolidated EBITDA AL Margin	37.1%	38.3%				1.2pp
	Consolidated EBITDA AL - Consolidated CAPEX Excluding Leasings	31.1	101.9		227.6%
	& Other Contractual Rights
	Telco Revenues	721.4	746.6		3.5%
	Telco EBITDA	300.9	331.3		10.1%
	Telco EBITDA Margin	41.7%	44.4%				2.7pp
	Telco EBITDA AL	259.6	280.6		8.1%
	Telco EBITDA Margin AL	36.0%	37.6%				1.6pp
	Telco EBITDA AL - Telco CAPEX Excluding Leasings & Other	26.3	94.4			258.6%
	Contractual Rights

Positive momentum in our core Telco business reflected in robust operational performance, driving a strong start to 2023 with particular focus on convergent and mobile service growth.

• NOS' 5G network is the most advanced in Portugal, being recognized for the third time in a row by Ookla® as the fastest 5G network, reinforcing once again independent recognition of NOS' 5G leadership.
• We delivered another semester of positive RGU growth across all businesses and with particular strength in post paid mobile. Core value post-paid mobile subscriptions maintained a very positive trajectory with 118.4 thousand net adds in 1H23, representing 64.3% of total mobile RGUs.
• Preference for convergence remains very strong among customers, with an incremental 24.9 thousand subscribing to integrated bundles in 1H23, accounting for 68.4% of the fixed customer base at the end of June.

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• Cinema operations kept on a path of recovery, with ticket sales rising to 2,033.7 thousand, increasing yoy by 36.8%, and decreasing only 13.7% vs 1H19, the best semester post pandemic, benefiting from the success of blockbusters on show in theatres.

Strong operating momentum and lower investment requirements driving solid financial results

• Consolidated revenues grew by 4.5% YoY, reaching 775.2 million euros in 1H23, driving 9.4% growth in EBITDA, to 352.6 million euros. Adjusted EBITDA AL rose by 8.0% to 297.0 million euros.
• Telco Revenues increased by 3.5% to 746.6 million euros impacted by the high volume of resale revenues booked in 1H22. Adjusting for low margin resale revenues, Telco Revenues would have grown by 4.8%. Telco EBITDA experienced yoy growth of 10.1% to 331.3 million euros. Telco EBITDA AL increased by 8.1% YoY, reaching 280.6 million euros.
• Audiovisual and Cinema Revenues posted substantial growth of 15.2%, reaching 45.0 million euros. Audiovisual and Cinema EBITDA AL increased by 6.1% to 16.4 million euros.
• Total CAPEX, excluding lease contracts and other contractual rights decreased by 20.0% yoy to 195.1 million euros in 1H23, reflecting an anticipated deceleration of 5G deployment, which is already close to conclusion with 90% coverage of the population by the end of 1H23.
• Total Free Cash Flow Before Dividends, Financial Investments, and Own Shares Acquisition amounted to 64.6 million euros in 1H23, positively impacted by the EBITDA AL uplift and lower CAPEX requirements.

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