Meo EBITDA falls 7.5% as competition hits margins

Portugal’s Meo reported a 7.5% year-on-year drop in first-half EBITDA to €443 million, while revenue was broadly flat at €1.297 billion, as tougher competition continued to weigh on its consumer business. The telecoms operator said the effects of its restructuring plan should become increasingly visible over the coming quarters and through 2027, a key issue for investors and policymakers tracking pressure on returns in Portugal’s telecoms market.

In the second quarter alone, excluding the effect of the Intelcia sale completed in April, EBITDA also fell 7.5% to €222 million, while revenue rose 0.3% to €648 million. CEO Ana Figueiredo said the results showed Meo’s resilience during what she described as one of the most challenging periods for the telecoms sector.

As its consumer business weakens, Meo said it is trying to diversify revenue sources, including through its energy retail unit Meo Energia, where quarterly revenue rose 36% and the customer base reached 256,000. Fixed-service revenue increased 3% in the quarter, while consumer revenue edged up 0.3% to €366 million. By the end of June, Meo had 4.5 million fixed customers, up 0.3%, and its post-paid mobile base had grown 3.7%.

In business services, quarterly revenue totalled €282 million. Meo said this rose 1.6% excluding Altice Labs and the gradual reduction of its mobile virtual network outsourcing business. The company also said Altice Labs, its research and development hub in Aveiro, doubled revenue from international markets year on year, lifting the share of external markets in total revenue from 10% to 20%.

Meo said its transformation plan requires consistency and a long-term view, with Figueiredo saying the benefits should become “increasingly visible in the coming quarters and throughout 2027”. The company invested €97 million between April and June, down €1 million from a year earlier, while first-half investment rose 0.6% to €202 million, excluding Intelcia.

Originally published at Eco.pt