Economy weighs heavy on OTE’s results

4 Nov 2010

Greek telecoms group OTE posted a year-on-year revenue decline of 7.8% in the third quarter of 2010 to EUR1.39 billion (USD1.95 billion), which it blamed on worsening economic conditions, a deteriorating consumer environment and intense competition across all the Balkan countries in which it operates. The group posted net income of EUR126 million in July-September 2010, 23.5% lower than in the comparable quarter of 2009, despite the positive effect of EUR10 million tax provision reversal at its property unit. Capital expenditures decreased by 13.7% y-o-y in 3Q10, reaching EUR169 million, reflecting lower investments in most operations across the group’s footprint. Capital expenditures in Greek fixed line, Romanian fixed line, and overall mobile operations (Cosmote) amounted to EUR48.6 million, EUR24.5 million and EUR93.3 million, respectively.

Greece, Cosmote, Cosmote (old)