Mobile News

Hellenic Telecommunications Organization SA, the Greek full-service telecommunications provider, today reviewed consolidated results (prepared under IFRS) for the quarter and 6 months ended June 30, 2010. The main you will find in the table right below.

Commenting on the Q2 2010 results, Panagis Vourloumis, Chairman & CEO, noted: "As we had anticipated, our top-line performance this quarter was significantly impacted by the tough economic and competitive conditions in all our markets, while our net result for the first half was annihilated by the dramatic increase in our taxes. In this context, the resilience of our EBITDA margins bears witness to the effectiveness of our past cost-containment initiatives." Mr. Vourloumis added: "We are intensifying our cost-reduction efforts and have initiated a constructive dialogue with the unions on the needed transformation of our organizations. We are pointing out to the Greek regulator the radical changes at work in the telecommunications markets for the past three years, and we are confident that this new reality will be taken into account as a new framework is put in place. Finally, we have made customer retention our absolute priority and will fight relentlessly to retain and strengthen the loyalty of all of our clients. While we do not foresee any relief in the short term, we are doing everything in our power to preserve and strengthen OTE's future growth and profit potential."

Facing challenging economic conditions, intense competition and lower consumer spending across all countries in which it operates, the OTE Group experienced a revenue decline of over 8% in Q2'10. On a comparable basis (i.e. excluding Q2'09 revenues of Cosmofon and Q2'10 revenues of Zapp in Romania), Group revenues were down by 8.6% compared to Q2'09.

Total Operating Expenses excluding depreciation & amortization amounted to €916.9mn in Q2'10. Excluding the Q2'09 voluntary retirement costs and the Q2'10 reversal of voluntary retirement costs, total Operating Expenses declined by 4.2% from the comparable 2009 quarter, mainly reflecting lower charges from domestic telephony operators and lower cost of telecommunications equipment.

In Q2'10, Payroll and Employee Benefits decreased by 4.1%. Payroll and Employee Benefits in Greek fixed-line operations were down by 2.6%.

The Group posted a net loss of €60.8mn for the quarter, reflecting the extraordinary tax levy imposed by the Greek State. Excluding additional taxes (special contribution on Greek profitable entities, tax on dividend income from Greek subsidiaries), net income would have been approximately €55mn.

Capital expenditures decreased in Q2'10, reflecting lower investments at OTE and RomTelecom. Total CAPEX as a percentage of Group revenues in Q2'10 was 15.2%, as compared to 14.9% in Q2'09. Capital expenditure for the Greek fixed-line, Romania fixed-line and for mobile operations amounted to €56.7mn, €36.7mn and €107.9mn, respectively.

You can read the full OTE results report here.