Hellenic Telecommunications Group S.A. (OTCPK:HLTOY) This fall 2021 Earnings Convention Name February 24, 2022 10:00 AM ET
Firm Individuals
Michael Tsamaz – Chairman & Chief Government Officer
Babis Mazarakis – Chief Monetary Officer, OTE Group
Panayiotis Gabrielides – Chief Advertising Officer, Shopper phase
Evrikos Sarsentis – Head of IR & M&A
Convention Name Individuals
Draziotis Stamatios – Eurobank Equities
Ierodiaconou George – Citi
Giannoulis Dimitris – ResearchGreece
Papageorgiou Alexandros – NBG Securities
Michalopoulos Labis – Chryssochoidis Inventory Brokerage
Operator
Women and gents, thanks for standing by. I’m Gaily , your refrain name operator. Welcome and thanks for becoming a member of the OTE convention name and stay webcast to current and talk about the fourth quarter 2021 monetary outcomes. All individuals shall be in listen-only mode and the convention is being recorded. The presentation shall be adopted by a question-and-answer session. [Operator Instructions]
Presently, I wish to flip the convention over to Mr. Michael Tsamaz, Chairman and CEO; Mr. Babis Mazarakis, Chief Monetary Officer; Mr. Panayiotis Gabrielides, Chief Advertising Officer, Shopper phase; and Mr. Evrikos Sarsentis, Head of IR and M&A. Mr. Tsamaz, it’s possible you’ll now proceed.
Michael Tsamaz
Good morning or good afternoon to all of you. And welcome to OTE’s fourth quarter and full 12 months 2021 earnings name. I do know February is already nearly over. We want all of you, who I have not talked to but, a really wholesome and profitable 12 months.
I am chatting with you in a troublesome day for the world and for Europe particularly. We hope that there shall be a fast and truthful decision with out pointless struggling. We had a really robust fourth quarter. Capping a 12 months after we recovered from the pandemic, strengthened our aggressive place. We pursued and intensified our bold funding program.
Earlier than I am going any additional, I wish to categorical my gratitude to all of the OTE men and women who’ve labored laborious, usually beneath very difficult situations, to get us the place we’re at this time. With out their enthusiasm, dedication and velocity of initiatives, our performances and our management couldn’t be achieved. If a few of you might be listening, thanks.
On the group stage, our full 12 months gross sales have been up greater than 3%. Our EBITDA was up almost 6%, and our free money circulation was up 17%. After all, that is largely as a result of stable efficiency in Greece, the place our full 12 months income was up shut to five%, with all income strains up by a considerable margin.
The ever rising demand for increased speeds drove the expansion in each broadband and cell information revenues. As you recognize, we determined to proceed investing even to accentuate our investments by means of all of the years of financial disaster and extra lately by means of the pandemic.
I used to be satisfied that the one manner ahead for OTE was to not retreat, however to construct the infrastructure the nation would wish to place itself out of the disaster, we did it. Our networks are in nice form. The client expertise we offer is second to none, and we see the ends in our mounted and cell service revenues. We aren’t accomplished but, and I am going to get again to that.
We’re additionally investing in development in our TV revenues reveals that that is what’s paying off. We signed prime eight of the 14 Greek Tremendous League soccer groups for unique broadcasting rights and enriched the providing of our OTT streaming companies. On account of this different – of this and different advances, we posted an nearly 9% enhance in our TV subscriber base.
In cell, it isn’t simply the prevalence of our networks that makes a distinction. Sure, we now have one of the best 5G protection within the nation with 60% inhabitants protection deliberate to go as much as 80% this 12 months.
In our two largest cities, protection even exceeds 97% in Athens and 90% in Thessaloniki. However it is usually our extra for extra technique that retains our clients joyful, as witnessed by Cosmote’s very excessive satisfaction rankings.
And the effectivity of our utility, along with the restoration of tourism, has led to a greater than 4% enhance in our cell gross sales revenues final 12 months. We consider we now have an necessary position to play in getting companies, the general public administrations, in addition to residential clients higher geared up for the digital race.
In 2021, we have been awarded a large number of main ICT tasks, supporting our enterprise to enterprise revenues. B2B is an space we’ll proceed to emphasise for the advantages it offers to all, each within the quick and the long-term.
As a lot of the progress we now have already made is spectacular, we at all times should do extra. On the one hand, our market is at all times extra aggressive, and there are new challenges forward. And however, in relation to fiber, networks nonetheless lag a number of the different European nations. This is the reason we now have determined to embark on a vital fiber to the house improvement program.
Final 12 months, we almost doubled the quantity of properties handed by a fiber to the house community to over 560,000. We wish to attain near 1 million properties by the tip of 2022 and three million by 2027.
So we now have dedicated to a six 12 months program of greater than €3 billion to achieve this purpose, which is vital to our success for our future outperformance and to the continued financial progress of our market.
Lastly, I wish to say a phrase about our new shareholder remuneration coverage, which we now have introduced in our earnings launch this morning. To face the funding wants I simply mentioned, in addition to evolving – the evolving aggressive panorama in our market, we determined that we would have liked slightly bit extra flexibility. Via dividends and share buybacks, we intend to distribute between 70% and 100% of our annual free money circulation. It is normalized, we’ll pay out to shareholders.
As you recognize, we’re ranging from a excessive base. We introduced the 2022 shareholder remuneration up greater than 4% from 2021 stage, which already was up 20% from the prior 12 months. We’ve revised our coverage, adopting the cut up between share buybacks and dividends.
We’ll keep a excessive complete payout, extra geared in the direction of buybacks, offering a gentle return to shareholders. These strikes are aligned with the implementation of our enterprise mannequin solely settled on our producing and distributing rising free money flows.
This sums up what I wish to let you know concerning the 12 months. And I’ll now go the cellphone over to Babis for his evaluation of the fourth quarter.
Babis Mazarakis
Thanks, Michael. Good day to all of you. Thanks from me as effectively, and wanting [ph] my want to Michael’s. It was certainly fairly a very good quarter on the finish of a very good 12 months. I might additionally like to say Romania, the place our cell operations within the first full quarter of life, with out mounted, confirmed very encouraging indicators of normalization.
However let’s begin with the group. Complete web group revenues have been up 5% or greater than €40 million within the quarter pushed by development in Greece. Adjusted EBITDA after leases was up greater than 12% to €332 million, with each nations contributing to the development. So the group adjusted EBITDA margin jumped by 240 foundation factors to 37.2%.
Turning to Greece, the place complete revenues of €813 million have been up 4.5% from the This fall 2020 stage, pushed by income will increase throughout the board. This wholesome development charge was achieved regardless of the marked sequential slowdown in gross sales of handsets, which have been fueled in prior quarters by authorities initiatives and incentives now coming to an finish.
Retail mounted service revenues have been up over 2% this quarter, barely forward of the Q3 development charge. We had one other stable enhance in broadband, up almost 8%. That is all of the extra spectacular than the interval of particular 12 months finish vacation initiatives, together with beneficiant presents, notably for lengthy standing clients. We additionally had a pointy bounce in TV revenues, which rose almost 14%, primarily pushed by demand for enriched sports activities content material.
With the addition of 49,000 fiber subscribers within the quarter, we had a powerful development of greater than 200,000 accounts in 2021, speeds of 100 mega bps or extra accounting for 25% of fiber subscriptions at 12 months finish, a rise of 11 proportion factors in comparison with the tip of 2020.
In an more and more aggressive market, OTE’s continued development is as a result of high quality of our service and its rising availability, as we construct up our networks to achieve clients wherever they’re.
As you recognize, we’re more and more counting on fiber to the house to maintain our development in excessive velocity broadband. We make investments and exceeded our 2021 goal with over 560,000 properties handed at 12 months finish. We added 13,000 retail fiber to the house subscribers within the quarter to 60,000, whereas utilization charge now reached 11% of properties, which have been handed on the finish of the 12 months.
And we count on this charge to rise sharply as fiber to the house availability development, the good thing about the service change into higher identified and excessive velocity, top quality presents strengthen buyer satisfaction and cut back churn. As well as, we introduced a variety of initiatives to double speeds for all eligible clients.
Superior content material and demand of our OTT service, notably specialist channels, have pushed complete TV subscriptions to rise by 49,000 or almost 9% throughout the 12 months. Within the quarter alone, they elevated by 24,000 to a complete of 624,000.
Turning to B2B. We had one other stable quarter in ICT tasks, resulting in a year-on-year enhance in revenues of almost 8% with public sector and digital initiatives, in addition to assignments from non-public corporations and utilities, all of them contributing to the nice prime line numbers.
Income from wholesale grew sharply, up greater than 11%, largely reflecting timing distinction at our worldwide wholesale visitors firm, OTE Globe.
Cell service revenues in Greece have been up greater than 2% within the quarter, bringing the total 12 months development charge to over 4%. This is because of our robust aggressive positions and sector management, strengthened by our extra for extra technique, applied systematically in each pay as you go and postpaid. As soon as once more, all segments of the enterprise, non-roaming, in addition to roaming, contributed to the expansion in revenues throughout the quarter.
This fall pay as you go revenues have been up almost 2% from a demanding base, whereas postpaid revenues, additionally up nearly 2% delivered a 3rd consecutive quarter of development. Income from customer roaming have been up once more, although, clearly, within the fourth quarter we do not get pleasure from big tourism inflows.
Our funding in infrastructure, notably for the 5G community, and our consideration to excellence in customer support enabled us to ship worth for cash in cell as we do in mounted. We’re assured that this may enable us to keep up our management this 12 months in a altering aggressive panorama.
I ought to observe that in This fall, we now have been busy on the industrial entrance, making use of a number of presents to our clients to boost loyalty and our competitiveness. We’re dedicated to enhancing worth for cash from all of our companies in mounted, in addition to cell. These initiatives also needs to strengthen our positions in coming intervals.
Working bills, excluding depreciation and amortization and one-offs in Greece, amounted to €478 million within the fourth quarter, up over 3%, largely reflecting increased revenues in wholesale visitors.
Vitality prices, impacted by the worldwide enhance in gasoline costs, have been up roughly €12 million within the full 12 months. We’re in a position to offset these with financial savings in different value objects.
Personnel bills have been down almost 20%. A big a part of the drop is as a result of pandemic volumes we had paid in This fall 2020 and to reversal of a provision for retirement indemnity consecutive to final 12 months’s restructuring. The steadiness of the development is a results of the effectivity actions we now have been steadily implementing since previous years.
Adjusted EBITDA after leases in Greece exceeded €321 million, a rise of greater than 7% from the fourth quarter of 2020, ensuing within the 5.5% acquire within the full 12 months. The quarter’s EBITDA margin confirmed a 100 foundation factors enchancment to 39.6%, whereas the total 12 months margin was up 30 foundation factors, as we leveraged our sound prime line development and 2020 restructurings.
Turning to Romania now. Our Romanian cell operations, wholly owned and separated from mounted, continued to make progress in step with our plans. Whereas complete revenues have been down almost 2% within the quarter, that is largely as a result of the truth that the comparable quantity final 12 months, included – sorry, included revenues from an ICT mission involving the set up of WiFi in public faculties and to different one-offs.
Cell service revenues for daypart have been up about 1%, 10 [ph] optimistic after the string of unfavourable quarters. Within the full 12 months, cell service revenues have been down 4%, with sequential enhancements quarter-after-quarter. In 2020, the comparable drop was minus 9%, so we’re clearly transferring to the best route. The corporate began to refocus on the mobile-only phase, whereas the market is beginning to present outcomes.
Its postpaid base continued to develop and was up greater than 5% year-on-year on the finish of December. The pay as you go base confirmed some enchancment, down simply 2% within the quarter towards a ten% decline in Q3.
Following an 8% discount in cell termination charges in the course of the 12 months, we had an extra big lower of greater than 21% imposed by the regulator as of January 1st. Whereas this could affect the early a part of the 12 months, Telekom Romania Cell expects roughly secure revenues for 2022 as an entire.
Working bills, together with depreciation, amortization and one-offs, have been lower than €68 million, a drop of almost 19% in comparison with the fourth quarter of final 12 months. This partly displays sure provisions and reorganization bills within the fourth quarter of final 12 months, but additionally our normal value self-discipline, which proceed with this 12 months. Within the full 12 months, complete OpEx was down almost 14%.
Telekom Romania Cell’s adjusted EBITDA after leases exceeded €10 million as in comparison with unfavourable EBITDA of €5 million within the fourth quarter of final 12 months. For the total 12 months, adjusted EBITDA of greater than €30 million was in step with our expectations and steerage and 25% above final 12 months’s.
We count on to just about attain €40 million this 12 months in 2022, skewed in the direction of the second half of the 12 months. All informed, we’re happy with the regular progress of our Romanian cell operations and count on additional enhancements all through 2022.
Now going again to the group P&L. Complete working bills, excluding depreciation, amortization and one-offs, amounted to €542 million, up 1.5% from This fall 2020, reflecting the upper income base, in addition to intense advertising exercise throughout the vacation interval and hikes in vitality value.
Personnel prices have been down 19% within the quarter and greater than 10% within the full 12 months. We’re persevering with to train stringent value self-discipline in all of the objects we will management.
Group adjusted EBITDA after leases was €332 million, up greater than 12%, demonstrating our stable working leverage. Depreciation was down 6% within the quarter, however up sequentially as a result of sports activities content material acquisition.
Earnings taxes totaled €42 million. Within the full 12 months, revenue tax of €234 million have been about 5 time the extent of the prior 12 months, reflecting the tax affect of deductible funding losses recorded in 2020 and better profitability in 2021, in addition to the affect on the deferred tax asset base of the discount in company revenue tax charge from 24% to 22%.
Shifting to the money circulation assertion now. Adjusted CapEx was €161 million, roughly in step with the identical quarter final 12 months. Within the full 12 months, adjusted CapEx was €559 million, in step with our €550 million steerage mark.
Adjusted free money circulation after the lease was €149 million down 42% from final 12 months, reflecting extra revenue tax funds in addition to working capital timing points as a result of totally different mixture of tasks invoiced and the actions we undertook to mitigate inflationary pressures. With 2021 full 12 months adjusted free money circulation of €590 million, we’re down about 10% from 2020, in step with our steerage of roughly €575 million.
Reported free money circulation totaled €101 million within the quarter and €483 million within the 12 months, in step with our goal. This supported our shareholder remunerations, which as we introduced this – for this 12 months, 2020 [ph] we count on to distribute €500 million cut up at 50%, 50% between money dividend and share buybacks, and this cut up goes to remain secure for the approaching years.
In conclusion, I can solely reiterate Michael’s message of fairly satisfaction with cautious optimism even when at this time’s information is way from reassuring. We’re assured in what we will management and doing every part we will to reduce the affect of what’s not beneath our management. Specifically, we consider that our investments in community, content material and buyer companies will stand us in good stead, no matter challenges we face in 2022 and past.
And now Michael, myself and Panayiotis and our colleagues across the desk are going to take your questions. Operator?
Query-and-Reply Session
Operator
[Operator Instructions] The primary query is from the road of Draziotis Stamatios with Eurobank Equities. Please go forward.
Draziotis Stamatios
Sure. Good day, there. Thanks very a lot for taking my questions. Let me begin with a pair on the shareholder return coverage after which observe with a query concerning the operations.
So firstly, on shareholder remuneration, may you simply run us by means of a bit in additional element by means of your ideas as to the way you got here up with this, the 70% to 100% vary, and why you opted for a balanced cut up between dividends and buybacks?
And I assume, associated to that could be a query on why you aren’t contemplating a scrip dividend program, which might help you doubtlessly institute a extra beneficiant coverage, whereas saving money to be able to finance the accelerated fiber to the house rollout program? Thanks.
Babis Mazarakis
Is it the one query? Since you stated you’ve one operational query as effectively?
Draziotis Stamatios
Okay. Yeah. So – after which concerning operations, yeah, I am simply questioning, you talked about concerning the upgrading of broadband speeds. And in your press launch, you say this may improve fiber penetration and strengthen loyalty.
I am simply questioning what this implies from a regulatory perspective, i.e., whether or not you’ll have to proceed with a discount in wholesale costs as effectively? Thanks.
Babis Mazarakis
So thanks for the query. Let me take the primary one. I feel it’s extremely clear in our announcement that our remuneration coverage does a few issues. To start with, it confirms our robust perception that our operational mannequin is efficient as have been the case to this point.
And the funding we’re continuing, the massive funding plan we introduced, would be the springboard together with the industrial actions to safe the expansion for the long run. So in step with that one and, after all, the sizing of the funding and the timing over time dictate some adjustment for the payout. That is why we launched this vary of between 70% and 100%.
As you’ll be able to see for 2022, we’re someplace in the course of this vary, confirming that the – what we’re asking right here is to safe the market flexibility towards this system for the following years.
The dividend and buyback, I imply, each are the – they very work for the buyers. And I feel crucial half right here is to notice that regardless of of the uncertainties and regardless of the massive CapEx plan that we now have forward of us, we’re managing to extend even this 12 months for ’22 versus ’21 the entire payout by 5%, and I feel that is crucial message to the – for the buyers out there. And on the identical time, this comes over one other 20% of the entire payout that was between 2021 and 2020.
The cut up, as we stated, the 50-50, is one thing that – within the coming years is one thing that can characterize our distribution yearly. So it is not only for this 12 months, but additionally for the following 12 months. And the share buyback is a program that secures a relentless circulation of returns to the markets on a gentle foundation, additionally serving to in unstable instances as we now have at this time. As for the scrip dividend, it is one thing that’s at all times into account, and it could be analyzed for future instances.
In order that’s behind the remuneration coverage. And with out repeating myself, I feel crucial half is the continual enhance of the entire payout and the underlying confidence of administration that the plan we now have put ahead secures a development mannequin.
For the second half, which is the upgrading broadband velocity, I feel it is a transfer that’s characterised by its management from our firm out there to supply at all times one of the best service together with, as an example, revolutionary concepts tips on how to entrench our clients into the fiber to the house case.
And concerning the regulatory setting, there’s at all times dialogue with the regulator, however this one, the industrial transfer, it is one thing that we should always spotlight now and the significance it must be for our buyer base.
Draziotis Stamatios
Okay. So it is secure to, I imply, so far as I perceive, to this point, there hasn’t been – you have no indication as as to if you have to to proceed to some pricing motion within the wholesale phase?
Michael Tsamaz
Okay. To start with, we now have submitted our tariffs [ph] applications replace to the regulator. And progressively, we’re getting the approvals on the applications that we now have submitted, okay. Steadily, we now have greater than 450 applications which have been submitted to the regulator for double up. And these applications, these tariffs [ph] applications, as a result of they’re regulated, as you recognize, need to be [Technical Difficulty]. In order that’s one factor.
And in case you ask me, I do not assume any regulator would deny to approve the doubling of the velocity of the shopper, in different phrases, enchancment of service with none value, that is one.
Now concerning the wholesale costs, we now have – we’re discussing with the opponents who purchase wholesale from us, we now have made a proposal. And presently, we’re having discussions concerning how a lot we will cut back the wholesale, I might say, from upgrading from the switching middle to the cabin.
However that is going to be one-off. And we’re cautious to not have any impact on our steadiness sheet or on our revenues on the wholesale. So that is – it is not one thing that worries us, in different phrases.
Draziotis Stamatios
Okay. That is very useful. Thanks a lot. And only a very fast follow-up on the remuneration query. Simply out of your steerage about reported money circulation this 12 months, which shall be 600 vis-à-vis the distributed quantity, which might be 500, is it secure to imagine that you simply mainly anticipate excessive working money circulation this 12 months, however decrease subsequent 12 months as a result of presumably, I do not know, tax swings or working capital swings?
Babis Mazarakis
The aim of the cut up of the brand new regulation coverage is, to begin with, to safe that the entire payout will proceed to observe the anticipated development of the operations and the efficiency. So on this sense additionally the funding program we now have introduced, after all, expands up till 2027. However particularly, the height will come from subsequent 12 months onwards since this 12 months up till it is absolutely scaled, it is going to take some months.
So all it is a security that even when we now have extra investments subsequent 12 months, this won’t impair the equation that say that if we enhance our efficiency, then additionally the remuneration to the shareholders ought to be rising accordingly.
And this buffer right here, that is the spirit behind the vary between 70% and 100%, secures that if we now have bumps within the, as an example, working free money circulation as a result of totally different timing of investments, this won’t end in bumps additionally on the shareholder remuneration, however it is going to smoothen out the payout. That is the entire story behind that one.
Draziotis Stamatios
That is very clear. Thanks a lot.
Babis Mazarakis
Thanks.
Operator
The following query is from the road of Ierodiaconou George with Citi. Please go forward.
Ierodiaconou George
Thanks. Good afternoon and thanks for taking my questions. I had a few follow-ups. Firstly, on the shareholder remuneration and simply – the feedback you simply made, Babis, round smoothing the outlook for remuneration. Is it truthful to imagine that this €500 million is one thing you view as a ground and you will try to have some development in case you can within the coming years? Or are you able to see eventualities the place doubtlessly it’s possible you’ll even need to scale, cut back the shareholder returns?
The opposite query I had is one on cell service income. You talked about throughout your introductory remarks that you simply enhanced worth for purchasers within the fourth quarter.
I simply needed to get an thought whether or not that had an affect, if there’s any purpose why we should always fear that there might be extra slowdown in [indiscernible], whether or not that was a brief adjustment within the fourth quarter.
After which my different query is round vitality prices. If you happen to do not thoughts giving us a little bit of an thought of how a lot affect you count on to see this 12 months, if there may be any hedging that advantages you or whether or not you might be seeing the total impact already in 2022? Thanks.
Babis Mazarakis
Thanks for the query, George. Simply on the primary level on the entire payout, adjusting that one, the entire core construction is secured that we now have, as an example, sufficient flexibility to say that going ahead. And with the efficiency of the corporate, this additionally will replicate enhance within the – the elevated efficiency of the corporate will replicate a rise additionally on the payout. So there isn’t any intention to scale down whereas the efficiency would go up, if that was the query. These two issues ought to go in parallel.
On the cell half, for This fall, I feel we stated that we have been very lively commercially in This fall. The explanations are apparent, I imply, our 5G community was kind of very effectively out and likewise the – our technique to work at all times for extra for extra and push the makes use of of information in – to our clients in a manner that can change into extra economically – for our clients to make the most of extra gigabytes, resulted to a really intense advertising marketing campaign, which truly could have an effect on the income since we did a whole lot of presents.
However this isn’t a repetitive factor. It was only for This fall. And if we wait slightly bit for Q1, we’ll see that the trajectory continues to be there. But it surely’s one thing that may be very useful additionally for the loyalty of the purchasers as a result of the extra we do intensive campaigns that reward our clients, the extra the purchasers will reward us with loyalty and with acceptance of the extra for extra technique.
Relating to vitality, I imply, even when I had a crystal ball, will probably be very troublesome to say the place prices will go this 12 months. Nevertheless, I can say that we now have a major a part of our vitality consumption beneath, as an example, closed contracts, closed in earlier intervals when – at decrease costs versus what they prevail at this time within the spot market. And all of us hope that the scenario will smoothen out within the coming quarters. However we’re good lined for this 12 months and for a very good a part of subsequent 12 months as effectively.
Clearly, I imply, if the vitality costs prevail, then all of the fashions must be appeared. However based mostly on the present outlook, the 2022 does not pose any important threat to our numbers due to the expansion merchandise. In order that’s an extended reply to your brief query.
Ierodiaconou George
Very clear. Thanks.
Babis Mazarakis
Thanks.
Operator
[Operator Instructions] Our subsequent query is from considered one of our webcast individuals, Mr. Giannoulis Dimitris from ResearchGreece.
Giannoulis Dimitris
And I quote. Hello, all. Do you’ve any take-up subscriber targets for FTTH for the following one to 2 years? Or any financial gross sales EBITDA targets associated to FTTH? Thanks. Dimitris Giannoulis, ResearchGreece.
Michael Tsamaz
We can’t disclose.
Babis Mazarakis
We do not give these particular numbers, however I can level out to our announcement concerning the fiber to the house rollout for the approaching years, the place we stated that we now have a program to go from 3 million properties by 2027 with a trajectory that begin peaking this 12 months after which will observe there.
We additionally stated that presently, we now have utilization in our present dwelling go, which by the way in which, on the finish of the 12 months, I remind, it was 560,000 properties, of about 11%. And since we’re within the early levels of the rollout, that is absolutely explainable.
So for modeling smart, the take-up charges of fiber to the house in mature nations are a lot increased than this 11%. So all of us count on that as we roll out our plan, additionally the purchasers will be part of our buyer – our community on the fiber to the house within the coming years. In order that’s the data that – or the steerage that we will direct proper now.
Operator
Thanks. [Operator Instructions] The following query is from the road of Papageorgiou Alexandros with NBG Securities. Please go forward.
Papageorgiou Alexandros
Good day. Thanks for the presentation. I simply needed to listen to your ideas on the aggressive setting in Greece given – particularly given the United-Wind deal.
And a second query about your debt stage going ahead, particularly given the – effectively, the elevated investments that you simply described, do you’ve any ideas of upsizing your debt? Thanks.
Michael Tsamaz
Relating to the query concerning the competitors and if it is going to intensify, sure, we count on competitors to accentuate additional with Nova merging with Wind. However this isn’t – it won’t be the primary time we see this both as an MVNO or a merger. We have seen it once more within the Greek market.
We’ve a really stable and profitable technique. We at all times deal with investing for the best-in-class networks, one of the best services, premium buyer expertise, whereas on the identical time, we wish to help companies, the state and the society to digitalize and develop.
We respect all of the opponents, however on the identical time, we’re at all times very effectively ready and at all times keen to work and compete laborious.
Babis Mazarakis
For the second query, the funding plan that we now have introduced is just not – we do not count on to have an effect on our debt stage. These as we show additionally this 12 months, it is funded inside the pre-CapEx working free money flows. So no impact on debt.
Papageorgiou Alexandros
Thanks.
Operator
Subsequent query is a follow-up query from Mr. Ierodiaconou George with Citi. Please go forward.
Ierodiaconou George
Sure, hello. Only one query. The European restoration fund, I feel – the opposite day, I feel, allots for the broadband tasks have been allotted. However I used to be extra on the SME digitalization and different tasks which may be extra income, could drive income greater than anything.
Do you thoughts simply working us by means of at what stage we’re when it comes to the deployment of a few of these subsidies and a few of these initiatives? And the place ought to we see the total affect in your numbers over the course of the approaching quarters? Thanks.
Michael Tsamaz
Mr. Ierodiaconou, I am unsure precisely the – if I obtained the essence of your query. If you happen to ask if we will foresee what could be the pie or the portion that we’ll get from the EU restoration fund digitalization pie, which roughly – shall be roughly €6 billion-plus.
We can’t make this type of guesses as a result of this goes on by mission foundation. So we can’t actually make a forecast how a lot of this pie or what’s the proportion we will get out of it.
Nevertheless, what I can reassure you is that we’re very effectively positioned due to our experience, due to our earlier confirmed expertise. Up to now, within the final years that we’re working as an ICT operator – ICT firm, we now have at all times delivered, each private and non-private companies and state owned companies. So I might say that we’re most likely higher positioned than another competitor on this occasion.
After all, we do not count on to stake the entire pie, and we do not need this or do not want this as a result of it is inevitable that since there are numerous gamers for this, that tasks will go to different gamers as effectively, which is okay.
What’s necessary for us is to organize our instances, to organize the tender envelopes, as we name it in Greek, which – and likewise ship every tasks that we undertake. And as soon as we do that, and this may have confirmed to this point, then after we are being assessed when it comes to grade, when it comes to high quality, we’re at all times rating on the prime as a result of since we now have delivered to this point no matter we now have acquired, it is inevitable that we get excellent grading on this side.
Now the pricing is one other issue for these tasks. We’re optimistic. We’re effectively positioned, and we’ll get a pie – a chunk of the pie as effectively. But it surely’s high-quality with us if others get a chunk of this pie as effectively. I feel the solar shines for everybody.
Ierodiaconou George
And when it comes to timing for a few of these tasks?
Michael Tsamaz
I feel after the second half of this 12 months, we’ll begin. It is not straightforward to start out as a result of we now have to organize, I imply, the state has to organize the documentation, the requisites, the dimensioning of the tasks. It is a variety of – it is not straightforward to organize every mission for a young.
And I am certain that they are working and getting ready the tender envelopes, the tender papers. And I am certain that we’ll be shocked positively, as an example, inside a six month interval, that we’ll see one mission after the opposite being launched or tendered.
Ierodiaconou George
Thanks.
Michael Tsamaz
I remind you, Mr. Ierodiaconou, I remind you, you keep in mind two years in the past, the corresponding ministry, which was – is chargeable for digitalization, for about eight months or 9 months, was very quiet and everybody was, as an example, anxious and questioning what are they doing? Why do not they launch any digital companies?
These guys, the ministry have been working behind the scenes very quietly. They have been getting ready every part. After which swiftly, one digital service after the opposite and one digital course of after the opposite was launched. So that is what I count on.
And now everybody talks not solely Greece however worldwide concerning the progress that Greece has made on this digitalization side. So I do not fear in any respect concerning the RF course of. Different questions?
Operator
[Operator Instructions]
Michael Tsamaz
I feel there’s a query on the internet…
Operator
Sure, there’s a query on the webcast. Thanks. It’s from Mr. Michalopoulos Labis with Chryssochoidis Inventory Brokerage.
Michalopoulos Labis
And the query, I quote is, may you repeat the magnitude of the funding for the fiber to the house mission over the following six years? Thanks.
Babis Mazarakis
This we introduced again in December, and it is on common about slightly bit over €100 million yearly, that is the typical. However the timing all year long will fluctuate based on the rollout.
Michael Tsamaz
So this shall be on prime of the CapEx that we had for different infrastructure on 5G for techniques or improve of our techniques for brand spanking new techniques. We count on it to exceed greater than €3 billion. It is going to go extra altogether.
Operator
Thanks. [Operator Instructions] Women and gents, there aren’t any additional questions presently. I’ll now flip the convention over to administration for any closing feedback. Thanks.
Michael Tsamaz
Thanks all for being on our name at this time, to your questions and your curiosity in OTE. On this unsettling international setting, we’ll proceed to work laborious on behalf of all our stakeholders. I stay up for speaking to you once more following our first quarter outcomes. Have a pleasant day and a pleasant weekend. Operator, thanks.
Operator
Women and gents, the convention has now concluded, and it’s possible you’ll disconnect your phone. Thanks for calling. And have a very good afternoon.
