OTE slashes fixed line revenue estimates

1 Oct 2004

Greek incumbent OTE yesterday revised down its full-year profits forecast from fixed line operations, blaming the situation on rising costs and the effects of regulator-imposed price cuts. It also took the opportunity to repeat its commitment to restructuring its under-performing fixed line unit, including rationalisation and job cuts to contain spiralling costs. The telco posted a 5% drop in revenues from fixed line operations in the three months to 30 June, on the back of a 12% fall the previous quarter. Operating profit in 2Q fell by 62% year-on-year to EUR45 million, despite a strong performance from the group’s wireless businesses. OTE’s press statement confirmed its fears for the fiscal year, saying that ‘Based on current company estimates, the decline in Greek fixed line operating revenues for the full year should be roughly in line with the level recorded in the first half’. The company plans to trim its 17,000-strong workforce and has held talks with union officials over its redundancy plans.

Greece, Cosmote