Orange Polska (OPL) Q1 2025 earnings summary

Executive summary

• Launched the Lead the Future strategy, targeting higher financial outputs, cash flows, and dividends through efficiency and new growth sources.

• Achieved a strong start to 2025 with solid commercial and financial performance, in line with full-year plans.

• Secured two blocks of 700MHz 5G spectrum at reserve price, supporting future network enhancement and service opportunities.

• Launched enhanced fibre + TV offer to boost commercial momentum.

• Q1 2025 results were solid and aligned with expectations, with strong commercial performance and ARPU growth across all main segments.

Financial highlights

• Revenues reached PLN 3,153 million in Q1 2025, up 2.3% year-over-year, driven by core telecom (+7.3%) and IT & IS (+19%) segments.

• EBITDAAL increased 2.9% year-over-year to PLN 822 million, with margin at 26.1% of revenues.

• Net income was PLN 191 million, down 15.7% year-over-year, mainly due to lower real estate gains and higher depreciation.

• eCAPEX rose 48% year-over-year to PLN 431 million, reflecting fiber rollout and transformation projects; full-year eCAPEX guidance reiterated at PLN 1.8–1.9 billion.

• Organic cash flow was negative PLN 89 million, impacted by higher capex, seasonality, and lower asset sale proceeds.

Outlook and guidance

• Full-year 2025 guidance confirmed: low single-digit growth in revenues and EBITDAAL, eCAPEX of PLN 1.8–1.9 billion.

• Focus remains on commercial momentum, cost savings initiatives for 2025, and launching a new transformation wave for 2026+.

• No adjustments to CapEx plans following the 5G auction; spectrum costs excluded from eCAPEX.