OTE reg­is­ters fresh drop in sales, prof­its

Kathimerini English - - Business & Finance -

OTE tele­com posted a sig­nif­i­cant de­cline in prof­its and turnover in the first quar­ter of 2011, ac­cord­ing to data pub­lished by the group yes­ter­day, mostly due to the con­sid­er­able fall in the rev­enues of its mo­bile sub­sidiary Cos­mote.

Group rev­enues came to 1.22 bil­lion eu­ros, down 13 per­cent year-onyear, and earn­ings be­fore in­ter­est, tax, de­pre­ci­a­tion and amor­ti­za­tion (EBITDA) con­tracted by 18 per­cent to 393 mil­lion eu­ros, while net prof- its reached 30.2 mil­lion eu­ros, rep­re­sent­ing a drop of 54 per­cent.

In­come was se­ri­ously af­fected by the course of Cos­mote’s do­mes­tic op­er­a­tions, as the sub­sidiary posted an 18.5 per­cent slump in rev­enues, while fixed-line OTE rev­enues also de­clined by 13 per­cent in Greece.

All OTE’s ma­jor sub­sidiaries in Greece and abroad reg­is­tered a drop in rev­enues and earn­ings, but prof­its were hit par­tic­u­larly hard by the group’s ex­tra­or­di­nary ex- penses, amount­ing to 40 mil­lion eu­ros, for the re­duc­tion of staff by about 1,600 peo­ple (300 at Cos­moteGer­manos, 250 at OTE and 1,000 at Romt­ele­com).

The group’s ad­min­is­tra­tion at­trib­uted OTE’s poor fig­ures for the first quar­ter of the year to the eco­nomic cri­sis in Greece and the ob­sta­cles that the reg­u­la­tory au­thor­ity has al­legedly raised re­gard­ing its com­mer­cial pol­icy.

“Fac­ing sim­i­lar

chal­lenges

to those at the end of 2010, mainly the con­tin­u­ing fi­nan­cial stag­na­tion and our non­com­pet­i­tive prices in mar­kets that are reg­u­lated, our rev­enues con­tin­ued to change in this quar­ter in the same way as in the last quar­ter of 2010,” com­mented the group’s chair­man and chief ex­ec­u­tive, Michael Tsamaz. He es­ti­mated that, based on the mea­sures that the group’s ad­min­is­tra­tion has taken, no re­bound can be ex­pected be­fore the year’s sec­ond half.

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