New Risk • May 28
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 78% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 0.4% per year for the foreseeable future. Minor Risks High level of debt (78% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. New Risk • May 18
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.4% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 0.4% per year for the foreseeable future. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Price Target Changed • May 15
Price target increased by 9.4% to €4.55 Up from €4.16, the current price target is an average from 12 analysts. New target price is 14% below last closing price of €5.29. Stock is up 43% over the past year. The company is forecast to post earnings per share of €0.41 for next year compared to €0.48 last year. Notizie in diretta • May 13
NOS Sees Q1 Growth in Revenue and Credit Rating Upgrade as IT and Audiovisual Drive Performance NOS reported year-over-year growth in Q1 2026 revenue, EBITDA and net income, with performance supported by its IT and Audiovisual segments, including cinema operations.
The company reported higher free cash flow in Q1 2026, helped by lower capital expenditure and improved financial leverage.
S&P upgraded NOS’s credit rating to BBB with a stable outlook, citing a stronger financial position despite competitive pressure and operational challenges in its core telecom activities.
The combination of earnings growth, stronger cash generation and lower leverage indicates a company that is currently tightening its balance sheet while still investing in non-telecom areas such as IT and Audiovisual.
For investors, the key watchpoints are how persistent ARPU pressure and telecom competition remain and whether IT and Audiovisual can continue to carry more of the growth and cash flow load. Reported Earnings • May 12
First quarter 2026 earnings released: EPS: €0.12 (vs €0.12 in 1Q 2025) First quarter 2026 results: EPS: €0.12 (up from €0.12 in 1Q 2025). Revenue: €460.2m (up 9.2% from 1Q 2025). Net income: €62.0m (up 5.1% from 1Q 2025). Profit margin: 14% (in line with 1Q 2025). Revenue is forecast to grow 2.1% p.a. on average during the next 3 years, compared to a 2.4% growth forecast for the Telecom industry in Europe. Over the last 3 years on average, earnings per share has increased by 9% per year whereas the company’s share price has increased by 12% per year. Upcoming Dividend • Apr 29
Upcoming dividend of €0.45 per share Eligible shareholders must have bought the stock before 06 May 2026. Payment date: 08 May 2026. Payout ratio is a comfortable 73% and this is well supported by cash flows. Trailing yield: 6.3%. Within top quartile of Portuguese dividend payers (4.6%). Higher than average of industry peers (4.4%). Annuncio • Apr 26
NOS, S.G.P.S., S.A. announces Annual dividend, payable on May 08, 2026 NOS, S.G.P.S., S.A. announced Annual dividend of EUR 0.3500 per share payable on May 08, 2026, ex-date on May 06, 2026 and record date on May 07, 2026. Major Estimate Revision • Apr 17
Consensus EPS estimates increase by 12% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate increased from €0.385 to €0.43. Revenue forecast steady at €1.85b. Net income forecast to shrink 9.8% next year vs 16% growth forecast for Telecom industry in Portugal . Consensus price target of €4.16 unchanged from last update. Share price was steady at €5.54 over the past week. Annuncio • Mar 27
NOS, S.G.P.S., S.A., Annual General Meeting, Apr 22, 2026 NOS, S.G.P.S., S.A., Annual General Meeting, Apr 22, 2026. Location: lisbon Portugal Major Estimate Revision • Mar 10
Consensus EPS estimates increase by 18% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate increased from €0.386 to €0.455. Revenue forecast steady at €1.84b. Net income forecast to shrink 5.2% next year vs 23% growth forecast for Telecom industry in Portugal . Consensus price target up from €4.05 to €4.22. Share price rose 2.4% to €5.22 over the past week. New Risk • Mar 06
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 91% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 1.5% per year for the foreseeable future. Minor Risks High level of debt (91% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Mar 04
Full year 2025 earnings released: EPS: €0.48 (vs €0.54 in FY 2024) Full year 2025 results: EPS: €0.48 (down from €0.54 in FY 2024). Revenue: €1.82b (up 7.5% from FY 2024). Net income: €245.9m (down 9.7% from FY 2024). Profit margin: 14% (down from 16% in FY 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 1.6% p.a. on average during the next 3 years, compared to a 1.9% growth forecast for the Telecom industry in Europe. Over the last 3 years on average, earnings per share has increased by 9% per year whereas the company’s share price has increased by 8% per year. Reported Earnings • Oct 29
Third quarter 2025 earnings released: EPS: €0.13 (vs €0.10 in 3Q 2024) Third quarter 2025 results: EPS: €0.13 (up from €0.10 in 3Q 2024). Revenue: €457.3m (up 5.7% from 3Q 2024). Net income: €65.2m (up 24% from 3Q 2024). Profit margin: 14% (up from 12% in 3Q 2024). Revenue is forecast to grow 2.9% p.a. on average during the next 3 years, compared to a 2.1% growth forecast for the Telecom industry in Europe. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 03
Second quarter 2025 earnings released: EPS: €0.11 (vs €0.16 in 2Q 2024) Second quarter 2025 results: EPS: €0.11 (down from €0.16 in 2Q 2024). Revenue: €458.2m (up 11% from 2Q 2024). Net income: €57.8m (down 28% from 2Q 2024). Profit margin: 13% (down from 20% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 1.4% p.a. on average during the next 3 years, compared to a 2.3% growth forecast for the Telecom industry in Europe. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. New Risk • Jun 25
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 15% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 15% per year for the foreseeable future. Minor Risks High level of debt (85% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Major Estimate Revision • May 13
Consensus EPS estimates increase by 14% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from €1.74b to €1.83b. EPS estimate increased from €0.318 to €0.364 per share. Net income forecast to shrink 26% next year vs 12% growth forecast for Telecom industry in Portugal . Consensus price target of €3.98 unchanged from last update. Share price was steady at €3.71 over the past week. New Risk • May 11
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 85% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 16% per year for the foreseeable future. Minor Risks High level of debt (85% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Reported Earnings • May 08
First quarter 2025 earnings released: EPS: €0.12 (vs €0.13 in 1Q 2024) First quarter 2025 results: EPS: €0.12 (down from €0.13 in 1Q 2024). Revenue: €421.3m (up 4.5% from 1Q 2024). Net income: €59.0m (down 13% from 1Q 2024). Profit margin: 14% (down from 17% in 1Q 2024). Revenue is forecast to stay flat during the next 3 years compared to a 2.6% growth forecast for the Telecom industry in Europe. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Major Estimate Revision • Apr 22
Consensus EPS estimates increase by 10% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate increased from €0.316 to €0.348. Revenue forecast unchanged at €1.74b. Net income forecast to shrink 32% next year vs 9.1% growth forecast for Telecom industry in Portugal . Consensus price target of €3.99 unchanged from last update. Share price fell 9.3% to €3.72 over the past week. Declared Dividend • Apr 16
Dividend of €0.40 announced Shareholders will receive a dividend of €0.40. Ex-date: 22nd April 2025 Payment date: 24th April 2025 Dividend yield will be 9.8%, which is higher than the industry average of 4.7%. Sustainability & Growth Dividend is covered by both earnings (65% earnings payout ratio) and cash flows (40% cash payout ratio). The dividend has increased by an average of 9.6% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 56% over the next 3 years. Since a fall of 27% would increase the payout ratio to a potentially unsustainable range, the dividend may be at risk. Annuncio • Apr 15
NOS, S.G.P.S., S.A. announces Annual dividend, payable on April 24, 2025 NOS, S.G.P.S., S.A. announced Annual dividend of EUR 0.3500 per share payable on April 24, 2025, ex-date on April 22, 2025 and record date on April 23, 2025. Annuncio • Mar 19
NOS, S.G.P.S., S.A. (ENXTLS:NOS) acquired CLARANET PORTUGAL - Telecomunicações, S.A. from Claranet Group Limited. NOS, S.G.P.S., S.A. (ENXTLS:NOS) reached an agreement to acquire CLARANET PORTUGAL - Telecomunicações, S.A. from Claranet Group Limited for approximately €150 million on January 27, 2025. A cash consideration of €152 million will be paid by NOS, S.G.P.S., S.A. As part of consideration, €152 million is paid towards common equity of CLARANET PORTUGAL - Telecomunicações, S.A.
For the period ending December 31, 2024, CLARANET PORTUGAL - Telecomunicações, S.A. reported total revenue of €205 million and EBITDA of €15.4 million.
The transaction is subject to clearance by the Portuguese Competition Authority. As on March 7, 2025, The transaction is approved by Competition Authority. Jorge Simões Cortez, Gonçalo Fleming, Catarina Brito Ferreira, Vasco Stilwell de Andrade and Joaquim Vieira Peres, Philipp Melcher of Morais Leitão, Galvão Teles, Soares da Silva & Associados acted as legal advisor to NOS, S.G.P.S., S.A.
NOS, S.G.P.S., S.A. (ENXTLS:NOS) completed the acquisition of CLARANET PORTUGAL - Telecomunicações, S.A. from Claranet Group Limited on March 17, 2025. New Risk • Mar 03
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 84% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 24% per year for the foreseeable future. Minor Risks High level of debt (84% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Mar 02
Full year 2024 earnings released: EPS: €0.53 (vs €0.35 in FY 2023) Full year 2024 results: EPS: €0.53 (up from €0.35 in FY 2023). Revenue: €1.70b (up 6.2% from FY 2023). Net income: €272.3m (up 50% from FY 2023). Profit margin: 16% (up from 11% in FY 2023). Revenue is forecast to stay flat during the next 3 years compared to a 3.1% growth forecast for the Telecom industry in Europe. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Annuncio • Jan 28
NOS, S.G.P.S., S.A. (ENXTLS:NOS) reached an agreement to acquire CLARANET PORTUGAL - Telecomunicações, S.A. from Claranet Group Limited for approximately €150 million. NOS, S.G.P.S., S.A. (ENXTLS:NOS) reached an agreement to acquire CLARANET PORTUGAL - Telecomunicações, S.A. from Claranet Group Limited for approximately €150 million on January 27, 2025. A cash consideration of €152 million will be paid by NOS, S.G.P.S., S.A. As part of consideration, €152 million is paid towards common equity of CLARANET PORTUGAL - Telecomunicações, S.A.
For the period ending December 31, 2024, CLARANET PORTUGAL - Telecomunicações, S.A. reported total revenue of €205 million and EBITDA of €15.4 million.
The transaction is subject to clearance by the Portuguese Competition Authority. Jorge Simões Cortez, Gonçalo Fleming, Catarina Brito Ferreira, Vasco Stilwell de Andrade and Joaquim Vieira Peres of Morais Leitão, Galvão Teles, Soares da Silva & Associados acted as legal advisor to NOS, S.G.P.S., S.A. Major Estimate Revision • Nov 08
Consensus EPS estimates increase by 10% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from €0.386 to €0.425. Revenue forecast steady at €1.66b. Net income forecast to shrink 34% next year vs 25% growth forecast for Telecom industry in Portugal . Consensus price target of €4.06 unchanged from last update. Share price fell 3.8% to €3.39 over the past week. New Risk • Nov 03
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 93% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 15% per year for the foreseeable future. Minor Risks High level of debt (93% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Nov 01
Third quarter 2024 earnings released: EPS: €0.10 (vs €0.09 in 3Q 2023) Third quarter 2024 results: EPS: €0.10 (up from €0.09 in 3Q 2023). Revenue: €432.7m (up 6.1% from 3Q 2023). Net income: €52.6m (up 15% from 3Q 2023). Profit margin: 12% (up from 11% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to stay flat during the next 3 years compared to a 2.3% growth forecast for the Telecom industry in Europe. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Annuncio • Jul 23
NOS, S.G.P.S., S.A. (ENXTLS:NOS) acquired 20% stake in DareData Engineering. NOS, S.G.P.S., S.A. (ENXTLS:NOS) acquired 20% stake in DareData Engineering on July 23, 2024.
NOS, S.G.P.S., S.A. (ENXTLS:NOS) completed the acquisition of 20% stake in DareData Engineering on July 23, 2024. Reported Earnings • Jul 22
Second quarter 2024 earnings released: EPS: €0.16 (vs €0.088 in 2Q 2023) Second quarter 2024 results: EPS: €0.16 (up from €0.088 in 2Q 2023). Revenue: €412.2m (up 4.7% from 2Q 2023). Net income: €80.7m (up 77% from 2Q 2023). Profit margin: 20% (up from 12% in 2Q 2023). The increase in margin was primarily driven by lower expenses. Revenue is forecast to stay flat during the next 3 years compared to a 2.0% growth forecast for the Telecom industry in Europe. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Jul 21
Consensus EPS estimates increase by 11% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from €0.324 to €0.36. Revenue forecast steady at €1.66b. Net income forecast to shrink 5.0% next year vs 21% growth forecast for Telecom industry in Portugal . Consensus price target broadly unchanged at €4.07. Share price was steady at €3.59 over the past week. Reported Earnings • May 19
First quarter 2024 earnings released: EPS: €0.13 (vs €0.068 in 1Q 2023) First quarter 2024 results: EPS: €0.13 (up from €0.068 in 1Q 2023). Revenue: €403.3m (up 5.7% from 1Q 2023). Net income: €67.8m (up 94% from 1Q 2023). Profit margin: 17% (up from 9.2% in 1Q 2023). The increase in margin was primarily driven by higher revenue. Revenue is forecast to stay flat during the next 3 years compared to a 1.8% growth forecast for the Telecom industry in Europe. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Declared Dividend • Apr 17
Dividend of €0.35 announced Shareholders will receive a dividend of €0.35. Ex-date: 22nd April 2024 Payment date: 24th April 2024 Dividend yield will be 9.7%, which is higher than the industry average of 4.7%. Sustainability & Growth Dividend is not adequately covered by earnings (99% earnings payout ratio). However, it is covered by cash flows (64% cash payout ratio). The dividend has increased by an average of 11% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 9.9% to bring the payout ratio under control. However, EPS is expected to decline by 15% over the next 3 years, which means the dividend may need to be reduced to reach a sustainable payout ratio. New Risk • Mar 10
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 7.5% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 7.5% per year for the foreseeable future. Minor Risks High level of debt (110% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Annuncio • Feb 20
NOS, S.G.P.S., S.A., Annual General Meeting, Apr 12, 2024 NOS, S.G.P.S., S.A., Annual General Meeting, Apr 12, 2024. New Risk • Jan 22
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.2% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 0.2% per year for the foreseeable future. Minor Risks High level of debt (119% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Annuncio • Nov 15
Nos Announces the Resignation of Jose Pedro Da Costa as Executive Member of Its Board of Directors, Effective31 December 2023 Nos announced that Jose Pedro da Costa has resigned as an executive member of its board of directors, as well as from the other companies in the group where he performs functions. The resignation takes effect on 31 December 2023. Reported Earnings • Nov 06
Third quarter 2023 earnings released: EPS: €0.09 (vs €0.20 in 3Q 2022) Third quarter 2023 results: EPS: €0.09 (down from €0.20 in 3Q 2022). Revenue: €408.0m (up 6.9% from 3Q 2022). Net income: €45.9m (down 57% from 3Q 2022). Profit margin: 11% (down from 28% in 3Q 2022). Revenue is forecast to grow 1.5% p.a. on average during the next 3 years, compared to a 1.9% growth forecast for the Telecom industry in Europe. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. New Risk • Sep 19
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 11% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 11% per year for the foreseeable future. Minor Risks High level of debt (80% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Buying Opportunity • Aug 02
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 12%. The fair value is estimated to be €4.26, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.6% over the last 3 years. Earnings per share has grown by 35%. For the next 3 years, revenue is forecast to grow by 2.5% per annum. Earnings is forecast to decline by 10% per annum over the same time period. New Risk • Jul 26
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 128% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 10% per year for the foreseeable future. Minor Risks High level of debt (128% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Reported Earnings • Jul 24
Second quarter 2023 earnings released: EPS: €0.089 (vs €0.086 in 2Q 2022) Second quarter 2023 results: EPS: €0.089 (up from €0.086 in 2Q 2022). Revenue: €393.8m (up 6.8% from 2Q 2022). Net income: €45.5m (up 2.9% from 2Q 2022). Profit margin: 12% (in line with 2Q 2022). Revenue is forecast to grow 2.4% p.a. on average during the next 3 years, compared to a 2.3% growth forecast for the Telecom industry in Europe. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. New Risk • Jul 07
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 9.7% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 9.7% per year for the foreseeable future. Minor Risks High level of debt (89% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Reported Earnings • May 16
First quarter 2023 earnings released: EPS: €0.07 (vs €0.08 in 1Q 2022) First quarter 2023 results: EPS: €0.07 (down from €0.08 in 1Q 2022). Revenue: €381.4m (up 2.2% from 1Q 2022). Net income: €34.9m (down 15% from 1Q 2022). Profit margin: 9.2% (down from 11% in 1Q 2022). Revenue is forecast to grow 2.2% p.a. on average during the next 3 years, compared to a 2.2% growth forecast for the Telecom industry in Europe. Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Apr 12
Upcoming dividend of €0.43 per share at 6.3% yield Eligible shareholders must have bought the stock before 19 April 2023. Payment date: 21 April 2023. Payout ratio is a comfortable 63% and the cash payout ratio is 83%. Trailing yield: 6.3%. Lower than top quartile of Portuguese dividend payers (6.5%). Higher than average of industry peers (4.2%). Buying Opportunity • Apr 11
Now 21% undervalued Over the last 90 days, the stock is up 12%. The fair value is estimated to be €5.50, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 28%. For the next 3 years, revenue is forecast to grow by 2.7% per annum. Earnings is forecast to decline by 14% per annum over the same time period. Reported Earnings • Mar 09
Full year 2022 earnings released: EPS: €0.44 (vs €0.28 in FY 2021) Full year 2022 results: EPS: €0.44 (up from €0.28 in FY 2021). Revenue: €1.52b (up 6.3% from FY 2021). Net income: €224.6m (up 56% from FY 2021). Profit margin: 15% (up from 10% in FY 2021). Revenue is forecast to grow 2.6% p.a. on average during the next 3 years, compared to a 2.2% growth forecast for the Telecom industry in Europe. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 16
Third quarter 2022 earnings released: EPS: €0.20 (vs €0.09 in 3Q 2021) Third quarter 2022 results: EPS: €0.20 (up from €0.09 in 3Q 2021). Revenue: €381.5m (up 4.1% from 3Q 2021). Net income: €106.0m (up 130% from 3Q 2021). Profit margin: 28% (up from 13% in 3Q 2021). Revenue is forecast to grow 1.9% p.a. on average during the next 3 years, compared to a 2.5% growth forecast for the Telecom industry in Europe. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Reported Earnings • Nov 13
Third quarter 2022 earnings released: EPS: €0.21 (vs €0.09 in 3Q 2021) Third quarter 2022 results: EPS: €0.21 (up from €0.09 in 3Q 2021). Revenue: €381.5m (up 4.1% from 3Q 2021). Net income: €106.0m (up 130% from 3Q 2021). Profit margin: 28% (up from 13% in 3Q 2021). Revenue is forecast to grow 1.8% p.a. on average during the next 3 years, compared to a 2.6% growth forecast for the Telecom industry in Europe. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Major Estimate Revision • Nov 01
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate increased from €0.27 to €0.30. Revenue forecast steady at €1.52b. Net income forecast to shrink 2.0% next year vs 6.6% growth forecast for Telecom industry in Portugal . Consensus price target broadly unchanged at €3.86. Share price rose 4.9% to €3.96 over the past week. Reported Earnings • Jul 22
Second quarter 2022 earnings: EPS misses analyst expectations Second quarter 2022 results: EPS: €0.086 (up from €0.085 in 2Q 2021). Revenue: €368.5m (up 8.1% from 2Q 2021). Net income: €44.2m (up 2.0% from 2Q 2021). Profit margin: 12% (in line with 2Q 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 100%. Over the next year, revenue is forecast to grow 2.1%, compared to a 4.0% growth forecast for the industry in Portugal. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Buying Opportunity • Jul 04
Now 20% undervalued The stock has been flat over the last 90 days. The fair value is estimated to be €4.77, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 2.8% over the last 3 years, while earnings per share has been flat. For the next 3 years, revenue is forecast to grow by 0.3% per annum. Earnings is also forecast to grow by 1.6% per annum over the same time period. 
