Greece’s largest telecoms company OTE has reported a disappointing set of financials for the second quarter. Net profit slipped by 62% in the three months ending 30 June 2004 to EUR45 million thanks to a fall in revenues from fixed line operations and increases in operating expenses. Fixed line operating revenues fell 4.9% to EUR729.3 million as a result of lower traffic volume due to increased competition, but sales overall managed a 5% increase to EUR1.3 billion. Despite fixed to mobile substitution, the total number of installed lines remained roughly unchanged in the second quarter, with a 3% drop in PSTN lines being more than offset by a 19% increase in ISDN lines. Good performances were put in by the group’s wireless operations both at home (Cosmote) and abroad (Globul, AMC, Cosmofon) while RomTelecom, in which it has a 54% stake, put in a solid performance as a result of recent tariff restructuring. At the end of June OTE’s gross debt stood at EUR3.24 billion, down 1.2% on the start of the year.