OTE’s Romtelecom and Cosmote see revenues and profits slighlty down in Romania

Romanian telecom provider Romtelecom, majority owned by Greek OTE,has posted lower third quarter and nine-month revenues and profit, while its sister company Cosmote Group managed to up some of its financial indicators.

Romtelecom has posted third quarter revenues of EUR 152.6 million, 0.6 percent less than the same period last year. Announcing its latest financial results, the company said the figures showed its stable market position. Romtelecom’s nine-month revenues were at EUR 446 million, down from EUR 470 million in September 2012. The company’s operational profit was of EUR 17.9 million during the first nine months of 2012, down on the EUR 46.8 million in the first nine months of 2012.

Meanwhile, its sister company Cosmote Group, which offers mobile communication services in Romania, Greece and Albania, posted a profit of EUR 266 million at nine months, up from EUR 195 million end September 2012. In terms of revenues, Cosmote Group posted EUR 1.3 billion in none-month sales, down on EUR 1.5 billion in September 2012. The full financial report is here.

Chief Financial Officer Romania Anastasios Tzoulas says Romtelecom was showing growth in areas of strategic focus. “The company’s key emphasis on TV and Internet, is reflected in subscribers’ increase, while on the business segment, Romtelecom consolidated its position as an important ICT player”, Tzoulas said.

Romtelecom saw a 7.2 percent increase in the number of TV subscribers, and corresponding growth in revenues from TV services of 8.2 percent for Q3, compared to Q3 in 2012. Also in the third quarter, revenues from internet services grew by 3.8 percent and the number of subscribers went up 4.8 percent.

Romtelecom’s internet users surpassed 1.23 million and TV subscribers reached more than 1.32 million. The number of RGUs (revenue generating unit) surpassed 4.8 million. RGU measures the total sum of analog cable, digital cable and internet subscribers that generate revenues for a company. For example, a subscriber can be considered two RGUs if they subscribe to internet access and land phone.

The decrease in voice subscribers was 3.8 percent, lower than the drop during the second quarter. In terms of its bundled services, the penetration rate of internet services in Romtelecom’s voice services customer base increased, reaching 55 percent, while TV services over voice services registered a 58 percent penetration rate.

However, the biggest growth rate in revenues, 221 percent compared to the same period last year, was registered by the ICT solutions, which included managed services, desktop virtualization, unified communications, IT security, as well as the diversity of cloud computing solutions.

Romtelecom, part of the Greek group OTE, ended the second quarter of this year with EUR 150 million in revenues and an EBITDA Pro Forma of almost EUR 35 million. For the first six months, Romtelecom’s revenues were down 7 percent, to some EUR 294 million.

Cosmote, which provides mobile services in Romania, posted revenues of EUR 116 million in the third quarter. The company’s earnings before interest, taxes, depreciation and amortization stood at EUR 33 million, down by 3.5 percent compared to Q3 last year.

In the first nine months of the year, Cosmote further increased its business customer base by 14.4 percent, following the launch of its Business Sizes unlimited tariff plans and of the partnership with Romtelecom to provide services for strategic partners such as BCR and Bancpost.

Cosmote’s total customer base in Romania, including Zapp, was 6.1 million at the end of September 2013, of which 25.4 percent was postpaid.

At the end of the third quarter, the company had about 510 points of sale across the country. Cosmote is the mobile arm of OTE, which also owns Romtelecom. The Romanian state also has a minority stake of 45.99 percent in Romtelecom.

In Q3 2013, mobile operations of the OTE Group provided telecommunications services to approximately 15.6 million customers in SE Europe.

Shaun Turton [email protected]

Romania Insider
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