Silknet’s revenue was up 6.0% y/y to GEL 297.6mn in 1H25, following an 8.5% y/y growth to GEL 582.0mn in 2024. The growth in both 2024-1H25 was primarily driven by mobile data, supported by subscriber base expansion and higher usage, while fixed broadband and pay-TV segments also contributed modestly. Silknet’s EBITDA margin improved to 64.9% in 1H25 from 63.6% in 2024, supported by slower opex growth relative to revenue. Operating FCF margin remained above 50%, while liquidity stood strong at GEL 186.8mn (US$ 68.6mn) in cash as of 1H25. The company strengthened its market position by securing 5G spectrum in Aug-25, and partnering with Orange – one of the world’s leading telecom operators, while maintaining low leverage at below 1.0x net debt/EBITDA in 1H25.
Expectations for 2025
We expect Silknet to maintain mid–single-digit revenue growth in 2025, primarily supported by rising mobile data usage. Seasonal peaks in data consumption during summer travel and leisure periods, together with continued growth in fixed broadband and pay-TV subscriptions, will further reinforce this trend.
We project Silknet to maintain strong cash flow generation underpinned by high EBITDA margins above 60% and capex plans within 18%-20% range of revenues. This is expected to yield an operating FCF margin close to 40%.
The company plans to expand 5G deployment this year and strengthen capabilities in both B2B and B2C telecom as well as the ICT sector, supported by the new Silknet-Orange partnership.
Meanwhile, in Sep-25, Silk Road Group (Silknet’s parent) issued US$ 400mn in 5-year senior unsecured guaranteed notes to refinance Silknet’s existing Eurobonds and support group-level capex. In recent years, Silknet has returned most of its free cash to shareholders, and we expect dividend distributions to remain significant.
