State tax swings OTE into the red

5 Aug 2010

Greek former monopoly PSTN operator OTE has reported a swing to a net loss in the second quarter caused by weak revenues and higher tax costs, against a backdrop of a domestic economic crisis and austerity measures introduced by the government. In the three months to the end of June 2010, OTE, which includes Greek and southeast European mobile group Cosmote, said its revenues fell by 8.3% year-on-year to EUR1.35 billion (USD 1.78 million) as customer spending fell and competition continued to intensify. Its bottom line, meanwhile, swung from a net profit of EUR6.4 million in 2Q09 to a EUR60.8 million net loss twelve months later, driven by EUR169.4 million in extraordinary tax levied by the state; excluding the additional tax the group would have posted a net profit of EUR55 million. EBITDA climbed 24% y-o-y to EUR463.2 million, as the year-ago figure included one-off voluntary redundancy costs of EUR153 million. OTE, which is 30%-owned by German giant Deutsche Telekom, issued a statement saying it does not foresee any improvements in sales or after-tax results in the near future.

Greece, Cosmote