OTE reports lower Q1 results

Hellenic Telecommunications Organisation (OTE) on Friday said its consolidation turnover fell 12.6 pct in the first quarter to 1.225 billion euros, its EBITDA margin dropped 2.1 points to 32.1 pct, its operating earnings fell 35.4 pct to 130.3 million euros and net earnings dropped 54.1 pct to 30.2 million euros in the January-March period this year, compared with the same period in 2010. Operating expenses, excluding amortizations, write-off and voluntary retirement costs, totaled 794 million euros, down 11.2 pct from 2010, while investments on fixed assets fell 13 pct to 166.5 million euros. Turnover from fixed telephony services in Greece fell 13.4 pct, in Romania was down 10.9 pct, while turnover from mobile telephony services in Greece fell 18.8 pct and in other Balkan states it fell by 6.8 pct.

In Greece, OTE suffered a 10 pct loss in fixed-telephony lines, with around 99,000 disconnections in PSTN and ISDN lines recorded in the three-month period, although ADSL lines rose in the same period.
In Romania, Rom-Telecom fared better in the January-March period with ADSL and subscription TV customers rising by 24.5 pct and 14.9 pct respectively.

Cosmote, OTE Group’s mobile telephony subsidiary, failed to offer the expected results despite an aggressive commercial policy adopted by the company. Revenues from mobile telephony operations in Greece and Albania (Cosmote and AMC respectively), fell by 18.5 pct in the first quarter, while in Bulgaria and Romania, revenues fell by 7.3 pct and 6.5 pct, respectively.

OTE successfully issued a common bond loan worth 900 million euros, of which 600 million euros were used to repay part of its debt and the remaining 300 million euros will be used as a safety credit line. OTE also successfully completed a bookbuilding process to issue three-year bonds worth 500 million euros. The issue will carry an annual coupon of 7.250 pct.

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