Cosmote posts strong growth; foreign operations now 25% of sales

26 May 2006

Greek mobile group Cosmote has reported strong revenue growth in all its markets in its consolidated financial results for the three months ended 31 March 2006. The upturn in turnover was led by increasing traffic in Greece despite the market’s maturity, ‘exceptional’ growth in Bulgaria and the take-off of Romanian operations following a relaunch of services. All its markets showed an increase in EBITDA, with significant improvements in Bulgaria and FYROM, and despite the negative contribution of the consolidation of Cosmote Romania; consolidated EBITDA growth stood at 15% for the quarter. Group operating revenues for the period under review amounted to EUR496.4 million, up by 30.5% year-on-year. International assets accounted for over 25% of revenues. Outside of Greece, Cosmote operates in four countries, Albania, Bulgaria, FYROM and Romania, operating as AMC, Globul, Cosmofon and Cosmote Romania respectively.

In its home market, Cosmote strengthened its leading position in Q1 by adding 105,830 net new subscribers. Revenues in Greece amounted to EUR375.6 million, a 7.4% year-on-year increase, whilst EBITDA increased by 4.7% to EUR154.4 million. Four months after its relaunch, Cosmote Romania succeeded in signing up 226,587 new users in Q1 2006 to reach a total of 275,521 at the end of March, representing a market share of around 2%. The Romanian cellco posted operating revenues of EUR6.1 million, and EBITDA of EUR12.3 million; it sustained a net loss of EUR19.1 million, reflecting investment in new development initiatives, and initial commercial launch costs.