Telekom Romania Mobile reports 6.4% lower revenues and shrinking EBITDA in 2023

Mobile operator Telekom Romania Mobile, controlled by Greek group OTE, reported its revenues decreased by 6.4% y/y to EUR 287 million mainly due to the decrease in interconnection tariffs (by about 50%) and the interruption of the MVNO business, according to a company release.

OTE Group is in the process of selling Telekom Romania Mobile to local entrepreneur Adrian Tomsa (the owner of Clever Media Network), but the deal is subject to regulatory bodies’ approval.

Adjusted EBITDA was EUR 17 million, down (by an unspecified rate) from 2022, mainly due to higher electricity costs, the interruption of the MVNO business, and the effect of some customer retention activities.

The company has not yet published the profit or the loss for 2023, but public data shows it posted losses in six of the seven years, 2018-2022.

On a positive note, the number of subscribers increased for the fourth consecutive year, by 3.3% y/y to 1.92 million.

"2023 was a year full of challenges but also of opportunities. We remained consistent with the promises made to our customers in Romania to offer them top mobile services and the most positive experience possible in a quality network,” said Charalampos Mazarakis, Chief Executive Officer, Telekom Romania Mobile.

At the group level, the comments were less optimistic.

"Let me add something about the developments in Romania. If we manage to complete the sale of the operation in Romania, it means that we will stop any 'bleeding' we have of the cash flow from Greece to the business in Romania," said the OTE Group CEO Michael Tsamaz, speaking during a meeting on the subject of the group’s 2023 financial results, quoted by Gadget.ro.

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