OTE’s 2Q profits drop, on rising revenues

31 Aug 2006

Greek telco OTE saw its turnover in the second quarter of 2006 rise 4.6% to EUR1.43 billion (USD1.83 billion), compared with EUR1.37 million a year ago, but its net income dropped 4.3% to EUR112.2 million, from EUR117.2 million in Q2 2005. The increase in revenue was mainly driven by higher turnover at mobile division Cosmote, ADSL sales, monthly rentals and telecom equipment deals, but partly offset by lower revenues at Romanian subsidiary RomTelecom. The drop in net profit was primarily attributed to higher income taxes, reflecting higher operating profitability at its Greek fixed line operations. The company’s performance in the second quarter was in line with OTE’s expectations, CEO Panagis Vourloumis said. Fixed line revenues for the quarter stood at EUR692.6 million, up 1.9% year-on-year. At the end of June it had a total of over 4.8 million PSTN lines in service, down by 2.5% from a year ago. ISDN lines increased by 5.7% to nearly 1.4 million, whilst the telco’s ADSL customer base reached over 300,000 (approximately 65% retail and 35% wholesale), up from 213,000 at the end of March. For full-year 2006, OTE expects a slight decline in domestic fixed line operating revenues, whilst operating profitability should improve quarter-on-quarter due to the progressive implementation of an early retirement programme.

Greece, Cosmote