Romanian unit drags down OTE results

5 Nov 2015

Greece’s OTE Group has reported ‘another quarter of solid revenue performance’ in the three months to 30 September 2015, although top line revenues were down 1.7% year-on-year to EUR971.3 million (USD1.061 billion). The firm said the domestic fixed line business registered a 0.2% increase in sales to EUR377.3 million, while mobile operations in Romania and Albania also recorded growth. This was offset, however, by a 3.1% y-o-y drop in domestic mobile revenues to EUR319.1 million, plus a 5.2% decline at the Romanian fixed line business. Pro forma EBITDA was down 5.7% at EUR350.1 million, attributed mainly to the lower profitability in Romania. Group net income stood at EUR78.3 million in 3Q15, up 13.3% compared to the previous year, reflecting the ‘positive impact of the reassessment of the Group’s deferred tax position’.

In operational terms, the Greek broadband business claimed 1.46 million active retail subscribers at the end of September, up 9.3% from 1.33 million the year before, though the number of fixed access lines fell 3.3% to 2.70 million. The domestic mobile unit saw user numbers increase from 7.34 million at 30 September 2014 to 7.43 million twelve months later. In Romania, broadband subscriptions were down 2.9% to 1.20 million, while mobile user numbers fell by the same margin to 5.72 million. The Albanian mobile unit Telekom Albania (formerly AMC) saw its customer total decline 2.3% y-o-y to just under two million.

Michael Tsamaz, OTE Group’s Chairman & CEO, noted: ‘In a context that remains tough, we are very pleased with the good quarter we delivered in Greece. Fixed line revenues were up, with solid growth in retail fixed services, as increases in TV and broadband revenues for the first time more than offset lower voice revenues. The drop in Greek mobile service revenue narrowed once again … In Romania, as we have stated before, conditions are still challenging, but we expect our investments to start paying off in the latter part of the coming year.’