NOS telco operations drive revenue growth in 2023

Portugal’s service provider, NOS, grew its consolidated revenue by 5% year-on-year in the financial year 2023, boosted by its telecom operations.

Source: NOS

In the fourth quarter of 2023 consolidated revenue went up 4.2% year-on-year which combined a 5.5% increase in telco revenues.

Total telco revenue was also 4.3% higher in 2023 and revenue for its overall B2C division rose by 6.2%.

However total B2B revenues were marginally lower in FY23 due to the reduction in low margin project-based contracts with almost equivalent positive impact on OPEX, according to the company.

NOS added an additional 25,000 fixed pay TV and 28k broadband customers in 2023 to its customer base. Revenue generated by residential customers in 4Q23 on average amounted to €50.90.

The company’s audiovisuals and cinema operations saw 11% increase in revenues in FY23. NOS put it down to cinemas and film industry returning to pre-pandemic levels, though it saw a 17.9% decline in cinema and audiovisuals in Q4.

EBITDA AL was higher by 12.3% yoy in 4Q23 which was driven again by its telco business, the company said this helped to offset the weaker quarter for audiovisuals and cinemas.

“The results we are announcing today are confirmation of the bold strategic choices we made to accelerate investment in technological leadership, customer experience and digital transformation. NOS today is a stronger, faster, and more flexible company, with a highly talented and experienced team and a unique combination of core assets, which together enable us to grow ahead of our peers and deliver superior returns. With the most intense years of 5G investments now behind us, we are on a solid trajectory of free cash flow generation which, allied with the strength of our balance sheet, are supportive of sustained attractive shareholder returns,” said NOS, chief executive officer, Miguel Almeida.