Cosmote profits flat despite sales bubbling up 38.5%

25 May 2007

Greek mobile operator Cosmote has announced that its 2007 first quarter group net profit was flat at EUR74.7 million (USD100.4 million) on higher financial and depreciation expenses, despite a 38.5% rise in revenues and the addition of one million group subscribers during the three-month period. The company said that net financial costs in the quarter increased to EUR26 million, compared to EUR10 million in the corresponding period last year. First quarter EBITDA was up 12.7% to EUR215.2 million, due to a significant reduction of EBITDA losses in Romania, and a 2.4% EBITDA rise in domestic operations. Group revenues for the first quarter jumped 38.5% year-on-year to EUR687.6 million, partly due to the consolidation of Balkan mobile retail chain Germanos, which contributed around 26% of the growth, whilst there was also strong revenue growth in international operations. Revenues in Greece were up 3.8%, despite aggressive call pricing and a 27% drop in termination rates. Cosmote said that growth rates in Albania, Bulgaria, Macedonia (FYROM) and Romania continued a strong upward trend, also driven also by the integration of Germanos’s regional distribution network, whilst it reported that the profitability of its international units also continued to improve. Group quarterly CAPEX reached EUR106 million, and group net debt stood at EUR2.36 billion. The group’s consolidated customer base exceeded 12.2 million at the end of March 2007, a 38.3% year-on-year increase.

Greece, Cosmote (old)