OTE Group (HTO GA) Greece
Report by ResearchGreece
ResearchGreece is concerned with Nova-Wind's more-aggressive-than-expected commercial policy announced on Jan 11th and the potential ARPU / EBITDA impact on OTE. The dividend & share buyback for 2023 is not necessarily at risk thanks to OTE's dividend-intended cash buffers. But 2023-2024 EBITDA could be, as they doubt OTE will let subscribers go. In the end, Nova’s zero margin / cash burning strategy could backfire, but the market damage will be done. Heightened competition could turn out to be strike No.3 for OTE, after higher interest rates and lower-than-expected remuneration in 2022.