OTE’s revenues drop 5.2% in Q2; net profit up by 68%; arrests ADSL user decline

9 Aug 2012

Greek telecoms firm OTE, which includes the mobile group Cosmote, has posted a 5.2% year-on-year fall in consolidated revenue for the second quarter of 2012 to EUR1.189 billion (USD1.47 billion), which it said it viewed as a moderate decline in consideration of the challenging economic and regulatory environment in all its operating countries – Greece, Romania, Bulgaria and Albania. At OTE’s Greek fixed line telephony division, a 9.4% drop in revenues to EUR422 million was ‘in line with the trends of prior quarters’, whilst its Romanian fixed line business at subsidiary RomTelecom posted a revenue drop of 5.9% to EUR156 million as declining voice revenues were partly offset by growth in TV and broadband demand. In mobile telephony, Cosmote Greece recorded a ‘limited’ revenue decline of 6.8% to EUR382 million in the April-June 2012 period, while in international (Bulgarian, Albanian and Romanian) mobile telephony operations, combined revenues climbed slightly year-on-year, by 0.4% in the three months ended 30 June 2012, to EUR237 million, despite a revenue drop at Cosmote Romania as the unit’s sales were negatively affected by mobile termination rate cuts and a contracting market. Group-wide, OTE reported that cost-cutting across the board had helped second-quarter net profit to rise by 68% year-on-year to EUR104.5 million.

In Q2 2012 OTE’s fixed line division in Greece recorded a loss of approximately 75,000 PSTN and ISDN retail connections, an improvement compared to losses in the prior four quarters (94,000, 107,000, 99,000 and 116,000 respectively). The telco estimated that the total Greek market (including OTE’s retail lines, wholesale line rental connections and full local loop unbundling subscribers) declined by 3.3% in the second quarter. As of the end of June 2012, OTE’s retail ADSL customers stood at 1.1 million, it reported, a net addition of around 19,000 users in the quarter following four consecutive quarters of net disconnections.