OTE reports resilient group revenues in 2Q16

12 Aug 2016

Greek telecoms group OTE has announced its results for the quarter ended 30 June 2016, reporting ‘resilient’ total revenues of EUR954.7 million (USD1.066 billion), up 0.1% year-on-year, driven by a solid increase in domestic fixed line revenues. Pro forma EBITDA – which excludes the impact of voluntary retirement programmes and restructuring plans – saw a 2.4% drop from EUR318.4 million to EUR310.9 million, mainly due to losses in the group’s Romanian unit, where pro forma EBITDA dropped 24.5% from EUR49.0 million in Q2 2015 to EUR37.0 million in the period under review. Fixed line revenues from OTE’s Greek unit amounted to EUR389.5 million, up 4.1% from EUR374.2 million in the same period one year earlier, while Telekom Romania saw a 0.7% decline in fixed revenues, from EUR150.5 million to EUR149.5 million. Income from mobile operations fell 3.9% in Greece, from EUR303.1 million to EUR291.2 million, though increased in Romania and Albania, up 4.9% (to EUR110.1 million) and 16.2% (to EUR20.1 million), respectively.

Operationally, in its domestic unit OTE (Cosmote) ended the quarter with 1,575,383 active retail broadband subscribers, up 10.3% from 1,428,560 in the corresponding year-ago period, while mobile subscriptions reached 7,610,022, up 3.0% from 7,386,271. PSTN connections amounted to 2,091,833 at 30 June 2016, falling 11.7% y-o-y from 2,369,831.

Michael Tsamaz, OTE chairman and CEO, commented: ‘… early investments in the services that our customers prefer enabled us once again this quarter to deliver a strong performance in Greece, despite economic challenges and obstacles to consumer spending … In Romania, an intense competitive environment is hindering the recovery of our operations, but we are confident that our initiatives will pay off.’

Greece, Romania, Cosmote, Cosmote (old)