Greece OTE Q2 Profit Rises to $237 Million
Greece's Hellenic Telecommunications Organization (OTE) has reported that its second-quarter profit rose 16.6 percent to €159.3 million (US$235.6 million). Operating income before depreciation and amortisation (OIBDA) rose 6.3 percent to €578.8 million (US$851 million), while revenue rose 2.5 percent to €1.6 billion (US$2.35 billion), helped by growth at its Cosmote mobile phone division.
Operating income rose 14 percent to €288.3 million (US$423.9 million), the company said.
Commenting on the quarter, Panagis Vourloumis, Chairman and CEO, noted: “ Our mobile operations achieved dynamic growth and market share gains in all countries, fully justifying our decision to acquire 100%-control of Cosmote. Enhanced cooperation between the fixed and mobile units of the Group is facilitating the development of convergent products and services, and Germanos is playing a key role in the expansion of our customer base in Greece and across the Balkans. Cosmote RomaniaÃ's first quarterly positive OIBDA is a particularly gratifying milestone."
Capital expenditure in the second quarter totaled €236 million (US$347 million), down 3.3% compared to Q2Ã'07, due to lower investments at RomTelecom.
As of June 30, 2008, total OTE Group gross debt stood at €6 billion (US$8.8 billion), an increase of 9.7% compared to December 31, 2007, reflecting OTE's increased stake in Cosmote.
A couple of months ago, OTE shareholders appointed two senior Deutsche Telekom executives to its 11-member board of directors, foreshadowing the role the German telecom will play in the future management of the company.
In mid-May, Deutsche Telekom reached a EUR3.2 billion three-way deal with the Greek government and Greek private equity company Marfin Investment Group Holdings to share ownership and management control of OTE.
Under the terms of the deal, Deutsche Telekom and the Greek government will each control a 25% plus-one-share stake in OTE, Greece's one-time state-owned monopoly phone company, and each will appoint five members to a future 10-member board of directors.
Posted to the site on 28th August 2008