Financial Data and Key Metrics Changes - Q2 revenue decreased by 0.8% year-over-year, but showed significant stabilization compared to Q1 [28] - Adjusted EBITDA increased by 1.9% year-over-year, driven by operational efficiencies and reduced lease costs [29][30] - Free cash flow for the quarter was approximately €150 million, slightly lower than the previous year due to net working capital changes [30] Business Line Data and Key Metrics Changes - Mobile net adds were 18,000 in Q2, showing a sequential improvement, while internet net adds were zero due to lower market liquidity and price increases [25][26] - Mobile ARPU declined by 1.6% year-over-year but improved sequentially due to subscription revenue increases from price rises [26][27] - Fixed ARPU showed an upward trend as the impact of price increases became more pronounced [27] Market Data and Key Metrics Changes - The mobile market is characterized by a three-tier structure: premium, Smart Shopper, and budget segments, with the premium segment being the largest [10][12] - The budget segment is becoming more aggressive, with new entrants and promotional activities, while the Smart Shopper segment remains stable [12][56] - Market liquidity is decreasing, impacting customer acquisition and retention across segments [14][15] Company Strategy and Development Direction - The company has successfully switched off its 2G and 3G networks, transitioning to a fully 4G and 5G SA enabled network, positioning itself as a leader in mobile technology [5][22] - New product offerings, including a refreshed yellow portfolio and the introduction of cyber insurance, aim to enhance customer engagement and service diversity [16][19] - The company is focused on optimizing its cost structure while maintaining a multi-brand strategy to capture market opportunities across different customer segments [15][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by lower market liquidity but expressed confidence in the company's ability to drive revenue growth through strategic initiatives [20][42] - The company expects moderate net adds in the coming quarters due to the current market conditions [26] - Management reaffirmed guidance for the year, including a projected 2.7% growth in dividends for 2026 [36][37] Other Important Information - The company has successfully refinanced a term loan and issued a new €550 million senior secured note, optimizing its average cost of debt [6] - The NASDAQ listing was switched off on August 15, with plans to discontinue the sponsored ADS program by November [7][38] - An employee share program has seen a participation rate of 50%, with employees investing approximately $10 million into the company [40][41] Q&A Session Summary Question: Impact of Flanker Brand and Yallo's Performance - Management noted stable evolution in trading for Yallo following a price rise, but did not disclose specific net add splits [44][46] Question: Cost Savings and UPC Migration - Management expects a flat or slightly declining OpEx evolution moving forward, with some temporary cost improvements from UPC migration [45][47] Question: Promotional Activity in Budget Segment - The budget segment is seeing aggressive competition, particularly from new entrants like Spuzu and GOMO, while established players maintain stable pricing [53][56] Question: Revenue and EBITDA Growth Trajectory - Management reiterated guidance for lower-end revenue expectations, with improvements anticipated in the second half of the year [59][60] Question: Share-Based Compensation - The increase in share-based compensation is attributed to the employee share program, with expectations for elevated costs this year [64][66] Question: Performance Improvement for 5G SA Customers - The 15% to 20% performance improvement for 5G SA customers is based on latency, uplink, and downlink metrics compared to regular 5G [74][75] Question: Interim Dividend Consideration - Management is evaluating the possibility of an interim dividend but noted legal complexities involved [77][78] Question: Cost Savings from U.S. Delisting - Expected savings from the U.S. delisting will materialize in 2027, with some potential savings in 2026 [79][80] Question: Maintaining EBITDA Growth Momentum - Management indicated that while revenue is expected to strengthen, the trajectory of EBITDA growth will depend on various operational factors [84][88]