TIM Hellas Telecommunications reported total operating revenues of EUR394.7 million for the six months to 30 June 2005, down 3.3% on the same period of 2004, with service revenues also down 3.8% at EUR373 million. Despite a rise in contract outgoing traffic revenues the company felt the effects of increasing competition and regulatory pressure in its domestic market, which weighed heavily on top-line growth. TIM Hellas reported a dramatic drop in year-on-year interconnection revenues: fixed-mobile interconnect sales were down 23.8%, following a 20.2% reduction in year-on-year interconnection tariffs, while mobile-to-mobile interconnection revenues declined by 7.3% over the twelve-month period as a result of a 19.3% year-on-year drop in interconnection tariffs – introduced by all the Greek operators in April 2004.
EBITDA for the first half of the year dipped from EUR118.5 million to EUR103.5 million as the slow-down of revenues fed through to TIM Hellas’ bottom line. Consequently the telco’s EBITDA margin was also hit: it fell by three percentage points to 26.2%, or 27.8% of service revenues, compared with 30% last year. TIM Hellas ended June with 2,257,312 mobile subscribers, down from 2,323,866 at the start of the year. Of the total, 802,728 were contract and 1,454,584 pre-paid users.