Revenue growth at OTE but Q3 net profits fall

11 Nov 2016

Greece’s OTE Group has reported a 28.6% fall in net profit for its third quarter to 30 September 2016, to EUR55.9 million (USD61 million). The decline was attributed to one-off items, including costs associated with a voluntary redundancy scheme, without which net profit would have climbed 11.2% to EUR74.6 million. The firm did, however, claim that its group revenue growth of 2.7% to EUR997.9 million was the strongest performance in a decade. Pro forma EBITDA climbed 2.0% to EUR357 million, driven by a 8.8% increase at its domestic fixed line business.

Michael Tsamaz, Chairman and CEO, noted: ‘We are pleased to report one of our strongest quarters in recent history. Revenues were up across all our key businesses. Our performance was particularly remarkable in Greek fixed operations, where growth in retail services continued to intensify, thanks to further progress in TV and broadband. Greek mobile revenues were up slightly, helped by a favourable comparison to last year’s quarter and strong revenues from visitors in the summer months.’

In operational terms, OTE had 1.61 million retail broadband customers in Greece (where it uses the Cosmote brand) at end-September 2016, up from 1.46 million a year earlier, while its Greek mobile subscriber base climbed 3.2% in twelve months to 7.67 million. There was a 1.1% drop in broadband subscriptions at subsidiary group Telekom Romania, to 1.19 million, and the Romanian mobile base fell 3.4% to 5.52 million. There were also mobile user losses at OTE’s Telekom Albania unit, where customers fell to 1.90 million, from just under two million a year before.