Romanian telecom operator Romtelecom, majority owned by Greek OTE upped its profit before taxes (EBITDA) last year by 11 percent, to some EUR 166 million, while its revenues were at some EUR 620 million, down on EUR 655 million in 2011. The drop in revenues was of 8 percent in the fourth quarter of the year, when Romtelecom reported EUR 150 million. The full year revenues result was an improvement on the previous year, when the drop in revenues had been of 8.6 percent, according to OTE group.
The 2012 results in Romania were triggered by cost-cutting measures and by the development of non-traditional business lines, said Stefanos Theocharopoulos, general manager of Romtelecom and its sister company Cosmote Romania.
End – 2012, Romtelecom saw the number of voice telephony lines decreasing by 6.5 percent, to some 2.3 million, but this was offset by an increase in broadband- up 5.3 percent and TV subscribers, up 7.3 percent. TV revenues in Q4 2012 were also up 11.6 percent from the comparable 2011 quarter as customers continue to “migrate towards higher-value propositions.” For the entire, year, TV service revenues were up 17 percent.
“In Q4’12, Romtelecom achieved consistent operating and financial performance despite lower revenues. In the quarter, wholesale revenues declined by 26.4 percent, following an 18 percent termination rate cut implemented by the Romanian regulatory authority in July. Romtelecom was able to minimize the impact of this factor on its EBITDA performance,” according to the company. The full report from OTE is here.