27th Feb 2006 12:00
Hellenic Telecomms Organization S A27 February 2006 Announcement OTE ANNOUNCES HIGHLIGHTS OF THREE-YEAR BUSINESS PLAN Athens, February 27, 2006 - Hellenic Telecommunications Organization SA (ASE:HTO, NYSE: OTE), the Greek full-service telecommunications provider, todayunveiled its 2006-2008 Business Plan. Highlights of the Plan were presented at ameeting with the financial community held in London, during which the Group's2005 results were also reviewed. OTE's three-year Business Plan focuses on returning the Group's fixed-lineoperations to healthy financial performance through initiatives aimed atcontaining revenue erosion, boosting customer-loyalty and retention, andaccelerating cost-cutting actions. While revenues of the Greek fixed-lineactivities are expected to decline by about 1.5% to 2.5% per year over the planperiod, payroll and benefits should also drop by about 7% to 8% per year, andtotal operating expenses by about 5% to 7% per year over the plan period. As aresult, Greek fixed-line Operating Income before Depreciation and Amortizationmargin (Under IFRS) should improve from mid-twenties levels (excluding VRPcosts) in 2005, to mid-thirties levels in 2008. OTE's Business Plan also confirmed the outlook of Cosmote and Romtelecom, itstwo leading business units, and announced the development of initiatives aimedat strengthening Group values across its organization. Panagis Vourloumis, OTE Chairman and CEO noted: "For the first time, we havedeveloped a forward-looking framework for our Greek fixed-line activities thatwill enable all of us to measure our performance and chart our progress. Thiscomes at a time when the entire telecoms industry is being revolutionized by newtechnologies making it particularly important to stay ahead of competition andto tighten our cost base. Our Business Plan will enable us to maintain a strictdiscipline in these areas over the next three years." The presentation documents in Greek and English, as well as a replay of thepresentation are available on OTE's IR website at www.ote.gr/engish/investorrelationsAbout OTEOTE Group is Greece's leading telecommunications organization and one of thepre-eminent players in Southeastern Europe, providing top-quality products andservices to its customers. Apart from serving as a full servicetelecommunications group in the Greek telecoms market, OTE Group has alsoexpanded during the last decade its geographical footprint throughout South EastEurope, acquiring stakes in the incumbent telecommunications companies ofRomania, Serbia and Armenia, and establishing mobile operations in Albania,Bulgaria and the Former Yugoslav Republic of Macedonia. At present, companies inwhich OTE Group has an equity interest, employ over 44,000 people in sevencountries, and our portfolio of solutions ranges from fixed and mobile telephonyto Internet applications, satellite, maritime communications and consultancyservices.Listed on the Athens Stock Exchange, the company trades under the ticker HTO aswell as on the New York Stock Exchange under the ticker OTE. In the U.S., OTE'sAmerican Depository Receipts (ADR's) represents 1/2 ordinary share. AdditionalInformation is also available on http://www.ote.gr. Contacts:OTE: Dimitris Tzelepis- Head of Investor RelationsTel: +30 210 611 1574, Email: [email protected] Kallianis - Senior Financial Analyst, Investor RelationsTel: +30 210 611 8167, Email: [email protected] Kozanoglou - Communications Officer, Investor Relations,Tel:+30 210 611 1121, Email: [email protected] Diamanti - IR CoordinatorTel: +30 210 611 5070, Email: [email protected] Hadjigeorgiou-Financial AnalystTel: +30 210 611 1428, E-mail: [email protected] Forward-looking statementAny statements contained in this document that are not historical facts areforward-looking statements as defined in the U.S. Private Securities LitigationReform Act of 1995. All forward-looking statements are subject to various risksand uncertainties that could cause actual results to differ materially fromexpectations. The factors that could affect the Company's future financialresults are discussed more fully in the Company's filings with the U.S.Securities and Exchange Commission (the "SEC"), including the Company's AnnualReport on Form 20-F for 2004 filed with the SEC on June 30, 2005. OTE assumes noobligation to update information in this release. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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