OTE 2014 revenue declines 3.3%, net income slumps 7.1%

27 Feb 2015

Greek telco OTE Group has announced its full year 2014 results, reporting revenue of EUR3.918 billion (USD4.433 billion), a decline of 3.3% from the EUR4.054 billion it reported in FY 2013. EBITDA grew 17.6% year-on-year, from EUR1.177 billion to EUR1.385 billion last year, and net income fell 7.1% y-o-y, from EUR287.8 million to EUR267.4 million. OTE attributes the profit drop to the impact of termination rate cuts, mainly in Romania (effective 1 April 2014), and a number of ‘one-off’ purchases. Adjusted full-year CAPEX increased from EUR471.2 million in 2013 to EUR556.7 million twelve months later, a rise of 18.1%.

In operational terms, OTE’s domestic mobile unit Cosmote recorded a 2.6% net year-on-year fall in subscriptions from 7.48 million to 7.28 million, due to competition in the market and despite investing in network coverage and data speed improvements. However, OTE’s total active Greek fixed broadband subscriptions increased to 1.39 million (including 1.365 million retail connections) at end-2014, up 8.1% from 1.29 million twelve months earlier. Meanwhile, OTE’s Greek fixed line telephony customer base declined 4.7% from 2.53 million to reach 2.41 million at 31 December 2014.

Michael Tsamaz, Group CEO, commented: ‘Throughout 2014, the Group moved closer to stabilisation, driven by our Greek fixed operations, which recorded their first positive quarter in seven years. At the Group level, consolidated revenues would have been roughly unchanged in the quarter, were it not for the impact of termination rate cuts. With a leaner organisation and a healthier financial structure, our profitability improved sharply, at both EBITDA and bottom-line levels. We significantly increased our investments in technological infrastructure to the benefit of our customers and Greece’s growth potential.’

Greece, Cosmote, Cosmote (old)