Telekom Romania restructuring intended to bolster cash flow, claims CEO

24 Jul 2019

Telekom Romania CEO Miroslav Majoros has told local media outlet Ziarul Financiar that the company’s recently announced restructuring plan will result in annual savings of several million euros. However, he stressed the decision to shed 692 jobs had nothing to do with the group’s recent financial performance and is instead intended to simplify commercial operations and internal processes. ‘We are satisfied with the results of the second quarter, especially in the mobile business, and we see signs of stabilisation in fixed operations,’ he said. The executive admitted, nevertheless, that the group did need to improve its financial position in order to support its investment programme, increase salaries and resolve recent issues such as bad customer debt, which had weakened its cash flow. ‘The cash flow situation has improved significantly, but we need to continue the process,’ Mr Majoros stated.

The redundancy programme comes amid speculation Deutsche Telekom (DT) group is planning to dispose of Romanian assets resulting from its ownership of a 45% stake in Greek telco OTE Group, which is the majority shareholder of mobile operator Telekom Romania Mobile Communications and fixed line provider Telekom Romania Communications. According to recent press reports, several potential bidders have expressed an interest in the assets, including RCS&RDS, Orange, Russia’s ER-Telecom and Bulgarian businessman Spas Rusev.