Saturday, August 06, 2011

Greece - OTE has slowed the decline in growth of its revenues, but growth is still some way off

[stockmarketwire] Hellenic Telecommunications Organization SA, the Greek full-service telecommunications provider, has today announced consolidated results for the quarter and six months ended June 30, 2011 showing net income of €62m compared to €61mn loss in Q2 '10

The latest financial report shows the pace of Group revenue decline has slowed down, helped by early signs of market stabilization in Greek mobile.

The company results show pro forma EBITDA margin down 1.4pp despite stringent cost-control actions.

Hellenic Telecoms shows strong operating cash flow and lower CAPEX.

"Commenting on OTE's performance in the second quarter, Michael Tsamaz, Chairman & CEO, said: "While OTE's Greek fixed-line business continues to suffer from its inability to compete in a market where price is the consumer's first and foremost consideration, we have started to see the early signs of stabilization and normalization we expected in mobile services after the destructive price wars of last year.

"Growth is still not in sight, but the rate of decline has improved significantly and we are achieving healthy increases in mobile data. Outside of Greece, we are also seeing improved conditions in Romanian fixed-line and across our mobile footprint with the exception of Albania, whose economy is closely tied to Greece's."

Growth still not in sight for Hellenic Telecommunications

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