RomTelecom on the up and up

27 May 2005

RomTelecom has announced its financial results for the three months to 31 March 2005, reporting revenues of EUR225.7 million, up 12.2% year-on-year, and a sharp rise in net income to EUR46.1 million. The Romanian incumbent attributed the positive performance to strong gains from rental, interconnection, leased lines and data services. Revenues derived from rental fees were up 30% in the wake of tariff rebalancing in June 2004 and February this year. Interconnection revenue rose by 21% in Q1 2005, driven by a 50% surge in wholesale traffic, although domestic traffic fell as a result of mobile substitution and increased competition. RomTelecom’s EBIT figure as a percentage of revenues also rose from 29% to 31.7% on the back of rising revenues. The fixed line operator is currently undergoing a major Transformation Plan to improve efficiency and cut costs.