Cosmote Romania ups pre-tax profit, buys additional spectrum use rights

Mobile telephony operator Cosmote Romania ended 2011 with a pre-tax profit of EUR 100 million, a 35 percent increase on the previous year. The company's customer base reached 6.5 million at the end of 2011, representing a 24 percent market share in Romania. Despite the difficult economic conditions, revenues remained stable compared to 2010, at EUR 468 million.

“We are pleased to have managed, yet again in 2011, to consolidate our position in the market, despite fierce competition and adverse economic conditions. Our high level EBITDA performance, as well as our 3G and business customer base boost within the year, clearly indicate customers’ trust,” said Stefanos Theocharopoulos, Chief Executive Officer of Cosmote Romania (in picture). In 2011, the business segment grew by more than 27 percent versus 2010, attracting customers like BCR and Transgaz. Cosmote agreed to pay EUR 118.8 million to buy additional spectra in the 900 & 1800 MHz bands and to renew its current license in the 900MHz band in Romania, in November last year, costing EUR 77.6 million for GSM 900 and EUR 41.2 million for DCS 1800. So far it has paid EUR 83.2 million of the total amount. The rest – some EUR 35.6 million will be paid in three equal annual installments plus interest, with the first installment scheduled for 2015, the second in 2016 and the third in 2017. The licenses have not yet been put into operation. “On November 14, 2011, Cosmote secured additional spectra in the 900 & 1800 MHz bands in the auction conducted by HTPC,” according to Cosmote's financial report. The Romanian National Authority for Management and Regulation in Communications (ANCOM) will organize the first frequency spectrum tender in Romania in the first half of 2012, for all the radio frequencies available in the 900 and 1800 MHz bands, which are currently used by operators Cosmote, Orange and Vodafone. Cosmote bought the rights to use the 1,710-1,785 MHz/1,805-1,880 MHz frequencies in 1998, valid for 15 years, for some USD 53 million. Cosmote is majority owned by Greek OTE. Read the full financial results for 2011 here. editor@romania-insider.com