OTE’s 54% profit drop bigger than expected

6 May 2011

Greek and south-east European fixed line, broadband and mobile operator Hellenic Telecommunications Organisation (OTE) suffered a larger-than-predicted 54% year-on-year drop in consolidated net income in the first quarter of 2011, as the firm was hit by workforce reduction costs and customer losses in Greece, where markets continue to be inhibited by recession and government austerity measures. OTE, which includes the Cosmote group (active in Greece, Romania, Bulgaria and Albania), posted a net profit of EUR30.2 million (USD44.6 million) in the January-March period, well below a EUR59.9 million average forecast from analysts in a Reuters poll. The news agency also reported that OTE partly attributed the profit fall to a EUR40 million charge to shed 1,600 workers in Greece and Romania. The Greek telco, which is jointly controlled by the state and Germany’s Deutsche Telekom, has scheduled the release of its full first-quarter results under IFRS to be released later today.

Greece, Cosmote