21st Jun 2007 16:33
Hellenic Telecomms Organization S A21 June 2007 Announcement 55TH ANNUAL GENERAL ASSEMBLY OF SHAREHOLDERS ATHENS, Greece - June 21, 2007 - Hellenic Telecommunications Organization SA(ASE: HTO, NYSE: OTE), the Greek full-service telecommunications provider, todayheld its 55th Annual General Assembly of Shareholders. Addressing shareholders, Panagis Vourloumis, OTE Chairman and CEO, stated:"In 2006 a number of changes were completed for the purpose of further adaptingOTE to the realities of hard competition. Among them was the reduction ofpersonnel by almost 5,000, about one third of the total number of employees, thehiring of 1,200 younger, well-qualified employees and the change in OTE'sRegulation regarding employment conditions. A three year business plan is beingimplemented in tandem with a personnel evaluation system tied to the targets ofthe plan. Training has intensified. In parallel to the internal reorganization, OTE is extending and upgrading itsnetwork and the quality of its services. Priority has been given to broadbandwhich has been expanded tenfold since December 2004 with a simultaneous increasein speeds and reduction in prices charged to the consumers. Fixed-line wholesalemarket is also a matter of special attention as is the introduction of newproducts such as IPTV. Achieving radical internal reorganization, while at the same time pursuingambitious operational targets, has put considerable stress on the reducedmanpower. Our personnel has responded admirably to the challenge and deservecongratulations. The majority of OTE employees are becoming aware that thehealth of the company and their personal advancement depend on continuouseffort, team work and caring for and respecting the user of our services. OTE fixed-line 2006 financial results were substantially better than 2005.EBITDA jumped from €659.8 million to €790.3 million, an increase from 24.4% ofrevenues to 29.9%. Net profits were €531.2 million compared to a loss of €237.2million in 2005. After two years, dividend payments have been resumed at €0.55per share.In spite of the improvements, fixed- telephony results in Greece are still belowEuropean averages and we need to try harder in reducing costs and increasingproductivity. Competition is intensifying rapidly, as the increasing pace ofLocal Loop Unbundling demonstrates. There is no room for sluggishness. The way regulation is applied causes problems to OTE in particular and to themarket in general. For OTE, the sudden changes frequently imposed by theRegulator impede long-term planning and are a disincentive to investment. Greecewas inexcusably late in opening up its telecom market but it would be a mistaketo try and force the market to get immediately where others, who started muchearlier, are now. Fast adaptation, yes, but at a speed which is in line with theability of the market to adapt and of investors to respond. For the time being,the weight of investing is borne principally by OTE. It is not so important toreach the desired objectives a little earlier or later. What is important, is todo so while preserving the health of the sector. As far as the OTE Group of Companies is concerned, developments last year werepositive. Cosmote continued its excellent performance and the results of itsefforts in Romania are encouraging. The acquisition of GERMANOS has provided theGroup with the strongest retail network in South-Eastern Europe. The sale of ArmenTel to Vimpelcom was successfully completed and InfOTE isexpected to be sold in 2007. After capitalizing a debt of €143.9 million, HellasSat has become profitable and thus none of our subsidiaries is loss making.Special attention must be paid to RomTelecom which is experiencing the impact ofvery strong competition. The recent changes in its management are expected tohave a positive impact. Consolidated Group revenues were 7.6% above 2005, reaching €5,891 million andnet profits after taxes €574.6 million compared to a loss of €216.8 million in2005, when OTE was obliged to include in its results the entire cost of thevoluntary exit scheme. OTE is following telecom market developments in Greece closely. Everything seemsto point to the direction of a market with larger and stronger telecom groups,which will combine fixed and mobile telephony and which will have the capacityto become serious investors. Technological developments dictate this trend.Although OTE is bracing for harder competition, such developments could, withproper Government and Regulatory guidance, lead to a healthier market. Finally, I must refer to the plan to attract a strategic investor for OTE.Though this does not directly concern OTE's management, it affects itsoperations, especially with regard to the timing of important decisions. Lack ofprogress there must be attributed, among other things, to the fact that in theperiod 2005-2007 OTE improved its prospects substantially, driving share priceto a much higher level. In this way, the appeal/attractiveness of a lowacquisition price to a potential candidate was reduced. With or without astrategic shareholder, OTE has proved that when there are no externalinterventions, and there were none since 2004, it is able to operatesuccessfully." During the meeting, shareholders approved: * The 2006 annual financial statements of OTE S.A. and the 2006 consolidated financial statements of OTE Group. The distribution of a €0.55 dividend per share. (The ex-dividend day will be Tuesday, June 26th, and the dividend will be payable on Tuesday, July 3, 2007) * The exemption of the members of the Board of Directors as well as the Auditors from any compensation liability for the fiscal year 2006 * The appointment of KPMG Chartered Accountants S.A. as Statutory Auditors for the fiscal year 2007 * The 2006 and the proposed 2007 compensation of the Chairman and Chief Executive Officer, the members of the Board of Directors, the Audit Committee and the HR Remuneration Committee * The renewal of the agreement for the covering of civil liability of members of the Board of Directors and the company's executive management in the exercise of their responsibilities, duties or powers. * The terms and conditions of a research project to be assigned to a member of the Board, (who is a professor at the Athens University) pursuant to article 23a of the Law 2190/1920, (The total value of the project is 78,000 euros). * The spin-off of the affiliated company "OTE International Solutions SA (OteGlobe), pursuant to the provisions of the Law 2166/1993 and 2937/2001. * The initiation of a stock repurchase program, according to paragraph 5 article 16 of the Law 2190/1920, that enables the company to repurchase within the next 12 months up to 10% of its shares at a price range between 10 and 30 euros. The Annual General Assembly also approved the re-appointment of five Boardmembers, whose terms had expired, for a new three-year term. These Board membersare Mr. Panagis Vourloumis, Mr. Ilias Gounaris, Mr. Nikos Stefanou. Mr.Panagiotis Tabourlos and Mr. George TzovlasFollowing the conclusion of the Annual General Assembly, OTE's eleven-memberBoard of Directors now comprises of: Panagis Vourloumis Chairman and CEO Executive member Iakovos Georganas Vice-Chairman Non-executive memberTheodoros Veniamis Non-executive member Ilias Gounaris Non-executive member George Gerapetritis Non-executive member Independent Haralambos Dimitriou Non-executive member George Bitros Non-executive memberXeni Skorrini-Paparrigopoulou Non-executive member Independent Nikos Stefanou Non-executive member Panagiotis Tabourlos Non-executive member Independent George Tzovlas Non-executive member Independent About 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 service telecommunications group in the Greektelecoms market, OTE Group has also expanded during the last decade itsgeographical footprint throughout South East Europe, acquiring stakes in theincumbent telecommunications companies of Romania and Serbia, and establishingmobile operations in Albania, Bulgaria, the Former Yugoslav Republic ofMacedonia and most recently in Romania. At present, companies in which OTE Grouphas an equity interest employ over 30,000 people in six countries, and ourportfolio of solutions ranges from fixed and mobile telephony to Internetapplications, satellite, maritime communications and consultancy services.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. Additional Information is also available on http://www.ote.gr. Contacts:OTE: Dimitris Tzelepis- Head of Investor RelationsTel: +30 210 611 1574, Email: [email protected] Nektarios Papagiannakopoulos - Senior financial analyst, Investor RelationsTel: +30 210 611 7593, Email: [email protected] Daria Kozanoglou - Communications Officer, Investor RelationsTel: +30 210 611 1121, Email: [email protected] Marilee Diamanti - IR CoordinatorTel: +30 210 611 5070, Email: [email protected] Christina Hadjigeorgiou - Financial AnalystTel: +30 210 611 1428, Email: [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 2005 filed with the SEC on June 30, 2006. 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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