28th Aug 2008 09:48
OTE GROUP REPORTS 2008 SECOND QUARTER RESULTS
UNDER IFRS
Group revenues up 2.5%; up 3.5% excluding Infote in Q2'07
Strong growth of operating income and OIBDA due to good cost control across all operating units; Cosmote Romania turns OIBDA positive
Group pro forma OIBDA margin increases by 1.5pp to 36.6%
Strong cash flow generation
ATHENS, Greece - August 28, 2008 - Hellenic Telecommunications Organization SA (ASE: HTO, NYSE: OTE), the Greek full-service telecommunications provider, today announced reviewed consolidated results (prepared under IFRS) for the quarter and six months ended June 30, 2008:
|
(€ mn except per share data) |
Q2'08 |
Q2'07 |
% Change |
H1'08 |
H1'07 |
% Change |
|
Revenues |
1,590.5 |
1,551.3 |
2.5% |
3,128.0 |
3,059.9 |
2.2% |
|
Operating Income |
288.3 |
252.8 |
14.0% |
527.8 |
513.1 |
2.9% |
|
Net Income |
159.3 |
136.6 |
16.6% |
300.4 |
277.5 |
8.3% |
|
Basic EPS (€) |
0.3250 |
0.2786 |
16.6% |
0.6129 |
0.5661 |
8.3% |
|
OIBDA* |
578.8 |
544.3 |
6.3% |
1,112.6 |
1,083.9 |
2.7% |
|
Pro forma** OIBDA |
581.8 |
544.3 |
6.9% |
1,157.4 |
1,106.0 |
4.7% |
|
as % of Operating Revenues |
36.6% |
35.1% |
1.5pp |
37.0% |
36.1% |
0.9pp |
|
Cash flow from operations |
443.4 |
352.1 |
25.9% |
765.9 |
672.7 |
13.9% |
|
CAPEX as % of Revenues |
14.8% |
15.7% |
-0.9pp |
12.0% |
15.3% |
-3.3pp |
* Operating income before depreciation and amortization
** Excluding impact of Voluntary Retirement Programs at OTE SA (€22.1mn in Q1'07 and €12.2mn in Q1'08) and RomTelecom (€29.6mn in Q1'08 and €3.0mn in Q2'08)
Commenting on the quarter, Panagis Vourloumis, Chairman and CEO, noted: "OTE achieved another good quarter. In our Greek fixed-line activities, for the third year in a row, we delivered higher first-half OIBDA margin, as our cost-control efforts gain traction. RomTelecom carried out a major headcount reduction, boosting future profitability. In both Greece and Romania, we maintained churn under control and pursued our push in broadband to catch up with European averages. 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 Romania's first quarterly positive OIBDA is a particularly gratifying milestone." Mr. Vourloumis added: "Our prospects are equally positive - we recently signed a two-year collective agreement with the Greek fixed-line unions, and we have started exploring joint areas of improvement with our new partner, Deutsche Telekom, that should bolster our cost-cutting potential, for example in procurement, but also lead to new revenue-generating opportunities in the longer term, in such areas as fiber optic next-generation networks. We are fully cooperating with the governments of Romania and Serbia which have announced their intention to list RomTelecom and Telecom Serbia. All in all, we are dealing well both with the inescapable realities of the fixed-line industry and with the growth reservoirs of the mobile business, while remaining extremely vigilant in our highly competitive markets. "
Financial Highlights
Revenues
OTE Group Revenues for the three months ended June 30, 2008 increased by 2.5% compared to the second quarter of 2007. This increase mainly reflects the strong performance from mobile operations, as well as increased revenues from leased lines, sales of telecommunication equipment and revenues from services rendered, mainly attributable to LLU growth. Excluding Q2'07 revenues from Infote, the directories business sold in Q4'07, OTE Group revenues grew by 3.5% in Q2'08.
Total Operating Expenses
Total Operating Expenses excluding depreciation & amortization increased marginally (+0.5%) in the quarter to reach €1,011.7mn, reflecting effective cost-control measures in Greek fixed-line operations and higher expenses in fast-growing international mobile operations.
- Payroll and Employee Benefits
In Q2'08, Payroll and Employee Benefits totaled €319.7mn, increasing by 0.7% compared to the previous year's quarter. Payroll and Employee Benefits related to Greek fixed-line and mobile operations were up in the quarter, but the increase was partly offset by lower payroll at RomTelecom, resulting from the implementation of its 2008 headcount reduction program.
- Other Operating Expenses
Other Operating Expenses were up 1.5% to €326.9mn, mainly reflecting higher commissions to dealers and third party fees, while the Group achieved savings in repair and maintenance and advertising costs.
Operating Income
Group Operating Income increased by 14% in the quarter to €288.3mn, as a result of the strong mobile revenue growth together with cost containment measures applied across all Group units.
Depreciation and Amortization
Group Depreciation and Amortization was down 0.3% to €290.5mn in Q2'08.
Operating Income before Depreciation and Amortization
Pro forma Operating Income before Depreciation and Amortization (OIBDA) increased by 6.9% to €581.8mn in Q2'08. Group pro forma OIBDA margin stood at 36.6%, 1.5pp up from the comparable quarter last year, mainly due to strong mobile performance, highlighted by Cosmote Romania's first OIBDA positive quarter, as well as good cost control across all Group units.
Net Income
In the quarter, OTE Group Net Income increased by 16.6% to €159.3mn.
Cash Flow
Cash provided by operating activities increased by 25.9% from Q2'07, amounting to €443.4mn. In Q2'08, OTE incurred an outflow of approximately €12mn related to Greek fixed-line redundancy payments to OTE's Auxiliary pension fund, compared to a payment of approximately €74mn in Q2'07 to both the Auxiliary pension fund as well as the main pension fund (TAP-OTE).
Capital Expenditure
Capital expenditure in the second quarter totaled €236.0mn, down 3.3% compared to Q2'07, due to lower investments at RomTelecom. Capital expenditure for the Greek fixed-line, RomTelecom and Cosmote operations reached approximately €77mn, €27mn and €127mn respectively.
Debt
As of June 30, 2008, total OTE Group gross debt stood at €6,063.8mn, an increase of 9.7% compared to December 31, 2007, reflecting OTE's increased stake in Cosmote. Net debt amounted to €4,607.4mn, up 9.4% from 2007 year end. Compared to the end of Q1'08, net debt was down €143.4mn, or -3.0%, reflecting the strong cash flow generation of the quarter. OTE Group debt outstanding breaks down as follows:
|
(€ mn) |
Jun 30, 2008 |
Mar 31, 2008 |
% Change |
Dec 31, 2007 |
% Change |
|
Short-Term: |
|
|
|
|
|
|
-Bank loans |
4.8 |
3.3 |
45.5% |
1,497.4 |
-99.7% |
|
Medium & Long-term: |
|
|
|
|
|
|
-Bonds |
5,453.4 |
5,450.9 |
0.0% |
3,360.4 |
62.3% |
|
-Bank loans |
605.6 |
659.5 |
-8.2% |
670.0 |
-9.6% |
|
Total Indebtedness |
6,063.8 |
6,113.7 |
-0.8% |
5,527.8 |
9.7% |
|
Cash and Cash equivalents |
1,456.4 |
1,362.9 |
6.9% |
1,316.3 |
10.6% |
|
Net Debt |
4,607.4 |
4,750.8 |
-3.0% |
4,211.5 |
9.4% |
OTE Fixed-Line
TRAFFIC STATISTICS
|
(Minutes, million) |
Q2'08 |
Q2'07 |
% Change |
|
Local |
2,549.7 |
2,779.7 |
-8.3% |
|
National Long-distance |
469.9 |
447.8 |
4.9% |
|
International Long-distance |
64.7 |
72.2 |
-10.4% |
|
Fixed-to-Mobile |
444.2 |
470.1 |
-5.5% |
|
Special Calls |
38.1 |
47.0 |
-18.9% |
|
Total Voice traffic |
3,566.6 |
3,816.8 |
-6.6% |
|
Subscription Dial-up Internet |
644.0 |
1,180.8 |
-45.5% |
NOTE: All OTE fixed-line data has been reclassified to reflect OTEnet's absorption within OTE SA; this has no impact on consolidated Group data.
SUMMARY FINANCIAL DATA
|
(€ mn) |
Q2'08 |
Q2'07 |
% Change |
H1'08 |
H1'07 |
% Change |
|
Revenues |
646.8 |
664.5 |
-2.7% |
1,284.8 |
1,331.4 |
-3.5% |
|
- Basic Monthly Rentals |
158.7 |
169.1 |
-6.2% |
318.9 |
340.1 |
-6.2% |
|
- Fixed-to-fixed calls |
109.3 |
125.2 |
-12.7% |
223.2 |
255.7 |
-12.7% |
|
- Fixed-to-mobile calls |
58.8 |
67.8 |
-13.3% |
116.0 |
133.3 |
-13.0% |
|
- International |
50.5 |
51.5 |
-1.9% |
103.4 |
92.2 |
12.1% |
|
- Other |
269.5 |
250.9 |
7.4% |
523.3 |
510.1 |
2.6% |
|
Operating Income |
87.5 |
71.9 |
21.7% |
177.0 |
146.8 |
20.6% |
|
Operating income before depreciation and amortization |
205.2 |
199.5 |
2.9% |
416.2 |
405.7 |
2.6% |
|
as % of Operating revenues |
31.7% |
30.0% |
1.7pp |
32.4% |
30.5% |
1.9pp |
|
Voluntary Retirement costs |
0.0 |
0.0 |
- |
12.2 |
22.1 |
-44.8% |
|
Pro Forma Operating income before depreciation and amortization |
205.2 |
199.5 |
2.9% |
428.4 |
427.8 |
0.1% |
|
as % of Operating revenues |
31.7% |
30.0% |
1.7pp |
33.3% |
32.1% |
1.2pp |
|
Depreciation & Amortization |
117.7 |
127.6 |
-7.8% |
239.2 |
258.9 |
-7.6% |
In Q2'08, total fixed-line revenues decreased by 2.7% to €646.8mn, compared to €664.5mn in Q2'07. The pace of decline in monthly rentals and fixed-to-fixed revenues in Q2'08 was roughly in line with the previous quarter, while the drop in fixed-to-mobile revenues reflects both lower traffic and lower termination rates. Strong performance in Other revenues partly offset the drop in domestic telephony. Growth in ADSL revenues continued in the quarter, though at a slightly slower pace than subscriber growth, as a result of the tariff reductions implemented in December 2007. Service revenues further increased, largely from local loop rental and interconnection revenues. Revenues from leased lines were also up in Q2'08 compared to Q2'07.
As of the end of June 2008, the total number of PSTN lines was approximately 4.3 million, down 8.5% compared to June 30, 2007. Line loss continued in Q2'08, reflecting further growth in LLU. The number of unbundled lines reached nearly 500,000 increasing at the same pace as in Q1'08 (94,700 in Q2'08). The number of ISDN lines (64K) dropped by 5.1% to a total of 1.3 million.
As of the end of June 2008, the number of OTE broadband customers exceeded 892,000. The total Greek ADSL market reached approximately 1.4 million subscribers as of the end of the quarter, adding approximately 126,000 new subscribers from the end of March 2008. OTE's retail customer base continued to increase in Q2'08.
The establishment earlier this year of two separate units focusing on Corporate & Business Customers, on the one hand, and on Residential Customers, on the other, is beginning to bear fruit, as the units develop products and services that better meet the needs of their respective customer segments.
In the Corporate & Business segment, OTE's flagship solution, "Conn-x@work", offers a broad range of internet access services, including web hosting and customized emails, specifically designed for the SME market. In Q2'08, the total number of businesses using this service reached nearly 22,000, an increase of 64% compared to the prior year. In March, OTE announced the introduction of an enhanced version of this service, "Conn-x@work Plus", which represents the most complete solution for the SME market, combining IP VPN services, ADSL-based internet access, fixed telephony at special discount rates, provisioning of equipment and SLA regarding installation and support services.
In H1'08, the IP VPN installed base increased by 54%, whereas associated revenues rose by nearly 48% compared to 2007. In the fast-growing Metro Ethernet area, OTE posted growth of 162% in revenues in H1 '08 compared to the prior year.
In the Residential Customer segment, OTE reengineered its range of flat-rate packages during the quarter, offering better value to its customers within the pricing guidelines imposed by the Regulator. Complementary revenue-enhancing services, such as call completion and SMSs using the new IP Multi Site platform, were added to OTE's portfolio. A marketing campaign, aimed at enhancing the brand image of OTE's "Conn-x" range of broadband products was launched and led to a sharp improvement in the public's awareness of OTE's product offering as measured by top of mind recall market surveys. In May 2008, OTE launched its first convergent product, "All in One", a bundle that combines fixed, mobile and broadband services, offering its customers a competitive discount in mobile monthly rental, as well as the convenience of a single bill. The rate of subscription to "Conn-x Talk" packages continued to increase in Q2'08, reaching one-third of all Conn-x broadband customers.
Total operating expenses totaled €559.3mn in the quarter, down 5.6% from €592.6mn in Q2'07. Payroll and employee benefits were up 2.8% to €192.3mn, reflecting salary increases. Greek fixed-line headcount reached 12,123 at the end of the quarter, as compared to 11,536 in Q2'07. This increase reflects the absorption of OTEnet within OTE. Other operating expenses stood at €116.8mn, down 8.5% from €127.7mn in Q2'07, reflecting effective cost control initiatives.
In Q2'08, pro forma Operating Income before Depreciation and Amortization (OIBDA) amounted to €205.2mn, up 2.9% compared to €199.5mn in Q2'07, while OIBDA margin rose by 1.7 percentage points to 31.7%.
2. Cosmote Group
CUSTOMER BASE EVOLUTION
|
|
Cosmote Greece |
AMC |
Globul |
Cosmofon |
Cosmote Romania |
Total Cosmote |
|
Net adds Q2'08 |
392,412 |
56,886 |
67,277 |
21,332 |
404,382 |
942,289 |
|
Customers Q2'08 |
6,920,907 |
1,280,181 |
3,945,255 |
639,765 |
4,642,525 |
17,428,633 |
|
YoY % Change |
21.8% |
17.3% |
10.4% |
24.0% |
109.5% |
33.2% |
SUMMARY FINANCIAL DATA
|
(€ mn) |
Q2'08 |
Q2'07 |
% Change |
H1'08 |
H1'07 |
% Change |
|
Revenues |
794.2 |
738.4 |
7.6% |
1,541.5 |
1,426.0 |
8.1% |
|
Operating Income |
181.9 |
161.0 |
13.0% |
321.2 |
291.3 |
10.3% |
|
Operating income before depreciation and amortization |
283.2 |
248.4 |
14.0% |
523.2 |
463.6 |
12.9% |
|
as % of Operating revenues |
35.7% |
33.6% |
2.1pp |
33.9% |
32.5% |
1.4pp |
|
Depreciation & Amortization |
101.3 |
87.4 |
15.9% |
202.0 |
172.3 |
17.3% |
In Q2'08, Cosmote Group achieved further significant increases in revenues, OIBDA margin and OIBDA.
Cosmote Romania delivered positive OIBDA in Q2'08, ahead of schedule. In Greece, Cosmote is steadily gaining market share and attracting the whole of the mobile market's revenue growth, while improving OIBDA margin. Both Globul in Bulgaria and AMC in Albania continued improving their OIBDA margins.
This performance has been achieved in a challenging macroeconomic, competitive and regulatory environment. Interconnection rates were lowered in Greece and Bulgaria in February. In 2008, new competitors have entered the mobile markets in Romania and Albania.
The Group added a total of 942k subscribers during the quarter, driving the customer base to more than 17.4 million, a 33% increase compared to a year ago. Customer growth was strong in all markets, with Romania, up by over 404k subscribers and Greece by over 392k, despite the maturity of the market. Germanos contributed 62% of the Group's net adds (excluding Albania).
Greece - Cosmote
With over 392k net new subscribers in Q2'08 Cosmote garnered an estimated share of over 53% of net additions and 100% of the market's revenue growth.
Cosmote continues to gain market share and is a net beneficiary of number portability. In Q2'08 Cosmote Greece added 39k net new contract subscribers, and 353k net new pre-paid subscribers bringing the total number of customers at the end of Q2'08 to 6.9 million, a 22% increase compared to the end of Q2'07. Total contract customers at the end of Q2'08 reached 2.1 million, increasing by 9.5% y-o-y, while pre-paid customers reached approximately 4.8 million.
SUMMARY FINANCIAL DATA FOR COSMOTE GREECE
|
(€ mn) |
Q2'08 |
Q2'07 |
% Change |
H1'08 |
H1'07 |
% Change |
|
Revenues |
455.4 |
436.0 |
4.5% |
879.8 |
826.0 |
6.5% |
|
Operating Income |
153.0 |
143.0 |
7.0% |
286.0 |
261.2 |
9.5% |
|
Operating income before depreciation and amortization |
194.3 |
183.5 |
5.9% |
369.9 |
341.6 |
8.3% |
|
as % of Operating revenues |
42.7% |
42.1% |
0.6pp |
42.0% |
41.4% |
0.6pp |
In Q2'08, Cosmote revenues rose by 4.5% to €455.4 mn while service revenues (excluding sales of handsets and other non-telecom revenues) increased by 5.2% as Cosmote continues to leverage its distribution capability, superior network, (in 2G and, even more, in 3G and HSPA), and its innovative and competitive tariff plans. In Q2'08, exploiting the high quality 3G/HSPA network, Cosmote relaunched its data offerings, and results to date are highly encouraging.
Voice traffic (outgoing & incoming) increased by another 33% in Q2'08 mainly driven by pre-paid outgoing traffic, with total outgoing minutes up by over 40%. As a result, outgoing voice revenues increased by 8% compared to Q2'07. Incoming revenues were down 1.3%, following the 7.3% mobile termination rate (MTR) reduction implemented on February 1, 2008 and now account for just under 20% of total revenues.
Data revenues (including SMS) represented 11.8% of total telecommunication revenues. Following the April launch of HSDPA @ 7.2Mbps, Cosmote, still the only operator in Greece to offer this speed, relaunched its WAP offering in June, introducing several customized handsets and new services. Cosmote estimates that it is now gaining approximately 60% of market net additions in data modems.
Visitor roaming revenues for the quarter were down 13%, impacted by lower tariffs, despite higher traffic.
|
H1'07 |
9M'07 |
FY'07 |
Q1'08 |
H1'08 |
|
|
AMOU, blended (min) |
163 |
169 |
170 |
177 |
183 |
|
ARPU, blended (€) |
27.2 |
27.9 |
27.2 |
24.1 |
24.2 |
|
Total Customer base |
5,683,633 |
5,939,366 |
6,268,627 |
6,528,495 |
6,920,907 |
Blended AMOU in H1'08 increased by about 12% to 183 minutes compared to H1'07, continuing the trend of previous quarters, driven mainly by pre-paid AMOU. Contract AMOU for the period was marginally higher than a year ago.
Blended ARPU for H1'08, at €24.2, declined by approximately 11% compared to H1'07, similar to previous trends. This largely reflects a decline in the pre-paid segment due to take up of highly competitive on-net offers. In addition, a small decline in post-paid ARPU reflects incoming rate declines and the rapid pick up in data modems, with generally lower ARPU.
Albania - AMC
In Q2'08, AMC added 57k net new subscribers, bringing its total customer base at the end of the period to approximately 1.3 million, a 17.3% increase compared to the end of Q2'07.
SUMMARY FINANCIAL DATA FOR AMC
|
(€ mn) |
Q2'08 |
Q2'07 |
% Change |
H1'08 |
H1'07 |
% Change |
|
Revenues |
46.3 |
41.1 |
12.6% |
91.4 |
81.7 |
11.9% |
|
Operating Income |
23.0 |
19.3 |
19.1% |
46.1 |
38.3 |
20.5% |
|
Operating income before depreciation and amortization |
29.0 |
25.4 |
14.3% |
58.1 |
50.6 |
14.7% |
|
as % of Operating revenues |
62.6% |
61.6% |
1.0pp |
63.5% |
62.0% |
1.5pp |
The strong growth in AMC's revenues in Q2'08 reflects the steady expansion of its customer base, a 10% increase in traffic and a 19% growth in SMS.
|
H1'07 |
9M'07 |
FY'07 |
Q1'08 |
H1'08 |
|
|
AMOU, blended (min) |
58 |
60 |
59 |
55 |
55 |
|
ARPU, blended (€) |
14 |
14 |
14 |
13 |
13 |
|
Total Customer base |
1,090,939 |
1,135,447 |
1,195,183 |
1,223,295 |
1,280,181 |
Bulgaria - Globul
Thanks to solid revenue growth in Q2'08, Globul maintained its share in the highly competitive Bulgarian market. Globul's service revenues increased by 11.3%, driven mostly by contract revenues (up 17.5%), supported among others by a 95% increase in data revenues following the introduction of 3G services.
SUMMARY FINANCIAL DATA FOR GLOBUL
|
(€ mn) |
Q2'08 |
Q2'07 |
% Change |
H1'08 |
H1'07 |
% Change |
|
Revenues |
109.1 |
99.9 |
9.2% |
210.2 |
191.3 |
9.9% |
|
Operating Income |
21.6 |
18.2 |
18.6% |
39.0 |
33.8 |
15.2% |
|
Operating income before depreciation and amortization |
45.4 |
38.0 |
19.6% |
85.8 |
73.4 |
16.9% |
|
as % of Operating revenues |
41.7% |
38.0% |
3.7pp |
40.8% |
38.4% |
2.4pp |
Globul achieved a significant OIBDA margin improvement in the quarter despite strong growth in the contract customer base. Key cost elements contributing to this improvement have been network expenses, marketing and G&A, containing total operating expenses growth to 2.8%.
Globul continued to focus on the post-paid customer segment, adding 112k net new contract subscribers, to bring its contract customer base to 1.9 million, or 48% of the total. As in previous quarters, pre-paid customers registered a decline of approximately 45k, leading to an overall customer growth of 67k, and a base of 3.95 million subscribers.
|
|
H1'07 |
9M'07 |
FY'07 |
Q1'08 |
H1'08 |
|
AMOU, blended (min) |
88 |
92 |
97 |
103 |
106 |
|
ARPU, blended (€) |
10 |
10 |
10 |
9 |
9 |
|
Total Customer base |
3,573,172 |
3,657,250 |
3,872,922 |
3,877,978 |
3,945,255 |
Globul's blended AMOU in H1'08 was up by about 20%, reflecting a 41% increase in pre-paid AMOU following commercial initiatives to stimulate usage and the customer base rationalization. Reflecting lower post-paid ARPU, resulting from the higher subscriber numbers in this category as well as tariff erosion, blended ARPU was down in H1'08.
FYROM - Cosmofon
In a maturing and difficult operating environment, Cosmofon maintained its positive momentum, adding a total of 21k net new customers in Q2'08 reaching a total customer base of 640k at the end of the quarter, a 24% increase compared to the prior year. The share of contract customers in the total subscriber base continues to rise, reaching 22% in Q2 from 20% in Q1. Following the award of a 3G license in Q1, Cosmofon has been investing heavily to roll out its 3G network, in addition to its other new services, such as fixed telephony, launched in early July. This has constrained Cosmofon's margin growth in Q2, but should considerably enhance the company's prospects in coming years.
SUMMARY FINANCIAL DATA FOR COSMOFON
|
(€ mn) |
Q2'08 |
Q2'07 |
% Change |
H1'08 |
H1'07 |
% Change |
|
Revenues |
15.5 |
15.2 |
1.7% |
30.0 |
29.2 |
3.0% |
|
Operating Income/(loss) |
0.3 |
0.5 |
-42.6% |
(0.6) |
0.1 |
- |
|
Operating income before depreciation and amortization |
4.8 |
4.8 |
0.7% |
8.4 |
8.2 |
2.5% |
|
as % of Operating revenues |
31.0% |
31.3% |
-0.3pp |
27.9% |
28.0% |
-0.1pp |
The increase in revenues in Q2'08 reflects solid post-paid outgoing revenue growth (+10.5%), largely offset by lower pre-paid revenues (-15.9%).
|
H1'07 |
9M'07 |
FY'07 |
Q1'08 |
H1'08 |
|
|
AMOU, blended (min) |
81 |
85 |
85 |
87 |
93 |
|
ARPU, blended (€) |
10 |
11 |
10 |
9 |
9 |
|
Total Customer base |
515,785 |
540,861 |
593,026 |
618,433 |
639,765 |
Romania - COSMOTE ROMANIA
Cosmote Romania turned ΟIΒDA positive in Q2'08, with OIBDA of €5mn. In line with management expectations, Cosmote Romania should achieve its target of positive OIBDA for full year 2008. During Q2'08, Cosmote Romania added over 404k net new subscribers, of which 50k post-paid, bringing its customer base to 4.6 million, of which 17% post-paid. Since late Q2, Cosmote Romania has launched several aggressive commercial offerings, aiming at stimulating customer and usage growth, leading to an overall strong market momentum.
SUMMARY FINANCIAL DATA FOR COSMOTE ROMANIA
|
(€ mn) |
Q2'08 |
Q2'07 |
% Change |
H1'08 |
H1'07 |
% Change |
|
Revenues |
63.6 |
36.2 |
75.4% |
116.8 |
63.6 |
83.6% |
|
Operating Income/(loss) |
(13.5) |
(18.2) |
-26.1% |
(39.3) |
(37.6) |
4.4% |
|
Operating income/(loss) before depreciation and amortization |
5.0 |
(8.0) |
- |
(2.7) |
(18.6) |
-85.5% |
|
as % of Operating revenues |
7.9% |
- |
- |
- |
- |
- |
Blended ARPU continued to be affected by the low pre-paid revenue per user, as the market is dominated by cheap on-net offers. Post-paid ARPU is approximately four times higher. As a result, post-paid revenues increased 119% compared to Q2 07, while pre-paid revenues rose by 71%.
|
H1'07 |
9M'07 |
FY'07 |
Q1'08 |
H1'08 |
|
|
ARPU, blended (€) |
6.2 |
6.0 |
5.6 |
4.9 |
4.9 |
|
Total Customer base |
2,216,465 |
2,818,059 |
3,616,274 |
4,238,143 |
4,642,525 |
Germanos
Germanos is the key driver for market share gains and subscriber additions, especially in Greece and Romania. Overall, in Q2'08, GERMANOS contributed about 552k net new subscribers to the Group accounting for 62% of net additions (excluding Albania).
The operations of Germanos are being steadily integrated within the Group, and its cost structure is being rationalized, with the focus being on supporting the overall performance rather than stand-alone results.
SUMMARY FINANCIAL DATA FOR GERMANOS
|
(€ mn) |
Q2'08 |
Q2'07 |
% Change |
H1'08 |
H1'07 |
% Change |
|
Revenues |
245.8 |
223.1 |
10.2% |
486.4 |
427.6 |
13.8% |
|
Operating Income |
1.4 |
5.3 |
-73.7% |
0.1 |
10.7 |
-99.1% |
|
Operating income before depreciation and amortization |
5.3 |
8.4 |
-36.7% |
7.8 |
16.6 |
-53.1% |
|
as % of Operating revenues |
2.2% |
3.8% |
-1.6pp |
1.6% |
3.9% |
-2.3pp |
3. RomTelecom
OTE, through its wholly owned subsidiary OTE International Investments Ltd, holds a 54.01% interest in RomTelecom S.A., the incumbent telecommunications operator in Romania. RomTelecom's key financial figures are stated below:
SUMMARY FINANCIAL DATA
|
(€ mn) |
Q2'08 |
Q2'07 |
% Change |
H1'08 |
H1'07 |
% Change |
|
Revenues |
223.2 |
217.3 |
2.7% |
442.4 |
439.4 |
0.7% |
|
Operating Income/(loss) |
(1.9) |
(0.8) |
- |
(16.1) |
25.8 |
- |
|
OIBDA |
68.5 |
73.9 |
-7.3% |
124.3 |
164.6 |
-24.5% |
|
Pro forma OIBDA* |
71.5 |
73.9 |
-3.2% |
157.0 |
164.6 |
-4.6% |
|
as % of Operating Revenues |
32.0% |
34.0% |
-2.0pp |
35.5% |
37.5% |
-2.0pp |
|
|
|
|
|
|
|
|
|
Fixed Telephony, Lines |
|
|
|
2,994,265 |
3,087,467 |
-3.0% |
|
|
|
|
|
|
|
|
* Excluding impact of RomTelecom employee exit program in Q1'08 and Q2'08
RomTelecom's operating revenues in Q2'08 rose 2.7% year-on-year as the company succeeded in keeping churn under control, while growth in new service revenues (Broadband, Business Data & TV) offset the drop in traditional telephony revenues.
The pace of line losses is slowing down considerably: the total number of lines dropped approximately 3% in the year to June 30, 2008, as compared with an 18% decline in the comparative prior period. RomTelecom also recorded a significant increase in PSTN usage, with local traffic up 14% in Q2'08 as compared to Q2'07, and long-distance traffic up 24% over the same period. Targeted campaigns combining new packages and dedicated network roll-out projects led to a significant increase (+48%) in PSTN gross additions in Q2'08.
The 9% increase in wholesale traffic in Q2'08 compared to the same period of 2007 could not offset the overall decline in interconnection tariffs, resulting in an 8% drop in wholesale revenue.
Data services (ADSL, VPN, other broadband services) achieved further significant growth, with revenues up 48% year-on-year in Q2'08. As of June 30, 2008, RomTelecom ADSL lines amounted to 505,000, nearly tripling the level achieved one year earlier.
The direct-to-home (DTH) TV service continues to be commercially successful, as the total number of customers reached 528,000 by the end of Q2'08, more than double the number at June 30, 2007. Reflecting the significant growth in RomTelecom's data and DTH TV customer base, sales of consumer premise equipment (CPE) rose sharply (+201% in Q2'08 vs. Q2'07).
Operating expenses excluding depreciation and amortization rose by 7.8% year on year in Q2'08. The launch of a wide range of new packages and products resulted in a €12mn or 239% increase in cost of goods sold, mainly due to CPE. Third-party-services rose by 47%, reflecting expenses related to the Company's corporate transformation and marketing repositioning programs. Also during the quarter, higher interconnection costs (up 6.8%) were generated by the increased international transit and growth in international calls, as a result of the Company's improved offering.
Reflecting the above, OIBDA for Q2'08 dropped by 7.3% compared to the same period in 2007.
Strategic projects and initiatives are on track. The Company's corporate transformation program has already resulted substantial cost-reductions. In particular, headcount decreased by 16% in the first half of the year to 10,523 employees at June 30, 2008.
4. Events of the quarter
OTE ACQUIRES 100% OF COSMOTE SA SHARES
On April 9, 2008, OTE announced that it held 100% of Cosmote SA shares and the corresponding voting rights following the conclusion of the sell-out and squeeze-out period, in the context of the Voluntary Public Tender Offer by OTE SA for the purchase of all the common shares of Cosmote SA.
OTE-ESTATE FILES REQUEST FOR A LICENSE FOR THE OPERATION OF A REAL ESTATE INVESTMENT COMPANY
On April 16, 2008, OTE announced that its subsidiary, OTE Estate, had filed a request with the Hellenic Capital Market Commission on April 10, 2008, asking for a license for the operation of a Real Estate Investment Company. This initiative is part of OTE Group's strategy for the crystallization of the value of OTE Estate's real estate portfolio. The value of the real estate assets that will be transferred to the Real Estate Investment Company will be no less than €250mn. The licence was subsequently granted by the HCMC on June 13, 2008.
DEUTSCHE TELEΚOM'S PARTICIPATION IN OTE'S SHARE CAPITAL REACHES 19.9%
On May 20, 2008, OTE announced that, according to the notification of Deutsche Telekom, on May 20, 2008, Deutsche Telekom's participation in OTE's share capital and total voting rights stands at 19.999234%, which corresponds to 98,026,324 voting rights following an acquisition of voting rights on May 15, 2008. According to the aforementioned notification, before this transaction, Deutsche Telekom had no participation in OTE's share capital and held no voting rights. Following a series of market purchases, implemented during the period June 25 to July 17, Deutsche Telekom's participation in OTE's share capital and total voting rights reached 21.97%, which corresponds to 107,671,713 shares and voting rights.
OTENET BUYS OUT THE PARTICIPATION OF SANYO HELLAS HOLDING IN VOICENET
On May 29, 2008, OTE announced that its 100% subsidiary OTEnet SA, proceeded with the buy-out of Sanyo Hellas Holding SA's 15.93% stake in Voicenet SA, for a price of €1.3mn. Following this transaction OTEnet SA now holds 100% of Voicenet SA's share capital.
RATIFICATION OF THE SHARE PURCHASE AGREEMENT AND THE SHAREHOLDER'S AGREEMENT BY THE GREEK PARLIAMENT
On June 18, 2008, OTE announced that the Greek Parliament ratified the Share Purchase Agreement and the Shareholders' Agreement between the Hellenic Republic and Deutsche Telekom AG concerning OTE. These documents became effective as of the day of their ratification.
56TH ANNUAL GENERAL ASSEMBLY OF SHAREHOLDERS
On June 26, 2008, OTE held its 56th AGM. The AGM approved the distribution of a €0.75 dividend per share, the appointment of three new Board members, for a three-year term, to replace members whose term had expired. The new Board members are Dr. Karl-Gerhard Eick, Deputy Chairman of Deutsche Telekom AG, Mr. Hamid Akhavan, Member of the Board of Management of Deutsche Telekom, responsible for the Mobile Communication Business Area, and Mr. Leonidas Evangelidis, a diplomat with a long and distinguished career, who has served as Ambassador of Greece to the Federal Republic of Germany, as Permanent Representative of Greece to the European Union and currently serves as Chief of Cabinet of the Deputy Minister of Foreign Affairs.
The decision related to the adoption of a stock option plan was postponed due to the lack of required quorum. Following the conclusion of the AGM, ΟΤΕ's Board of Directors coopted Mr. Leonidas Korres, who serves as Special Secretary to the Ministry of Finance, as a new member of the Board, in replacement of Mr. Nikolaos Stefanou, who resigned.
5. subsequent events
OTE ABSORBS OTENET
On July 7, 2008, OTE announced that following the decision of the Deputy Minister of Development, the merger of OTE SA with OTEnet SA, via absorption of the latter by the former, has been approved in accordance with the relevant decisions of the two companies' Board of Directors and applicable law.
REPEATED ORDINARY GENERAL ASSEMBLY OF SHAREHOLDERS
On July 9, 2008, OTE held its Repeated 56th Ordinary General Assembly, during which shareholders representing 57.70% of its registered share capital were present. During the meeting, shareholders approved the adoption of a stock option plan for executives of the Company and affiliated companies.
OTE SELLS ITS PARTICIPATION IN LOFOS PALLINI SA
On July 31, 2008, OTE sold its total 33.0% participation in the share capital of Lofos Pallini SA, a real estate development, to REDS SA for a total consideration of €18.45 million.
OTE SIGNS TWO-YEAR COLLECTIVE LABOR AGREEMENT
On August 6, 2008, OTE announced that a two-year collective agreement has been signed between the company and the unions. The agreement provided for annual weighted average wage increases of approximately 4.6%, while it solved a series of labor related issues.
6. Outlook
Management expects the trends of the first half to extend through the end of the year. The performance from Greek fixed-line operations should be impacted by the challenging competitive environment, while RomTelecom should benefit from the previously announced headcount reductions. However, any slowdown in fixed-line performance should be more that offset by continuing strength in mobile, thanks to Cosmote's superior technological platform and distribution capabilities. It should also be noted that synergies with Deutsche Telekom, which will benefit OTE and all its shareholders, are yet to be tapped.
About OTE
OTE Group is Greece's leading telecommunications organization and one of the pre-eminent players in Southeastern Europe, providing top-quality products and services to its customers.
Apart from serving as a full service telecommunications group in the Greek telecoms market, OTE Group has also expanded during the last decade its geographical footprint throughout South East Europe, acquiring stakes in the incumbent telecommunications companies of Romania and Serbia, and establishing mobile operations in Albania, Bulgaria, the Former Yugoslav Republic of Macedonia and most recently in Romania. At present, companies in which OTE Group has an equity interest employ over 30,000 people in six countries, and our portfolio of solutions ranges from fixed and mobile telephony to Internet applications, satellite, maritime communications and consultancy services.
Listed on the Athens Stock Exchange, the company trades under the ticker HTO as well as on the New York Stock Exchange under the ticker OTE. In the U.S., OTE's American Depository Receipts (ADR's) represents ½ ordinary share.
Additional Information is also available on http://www.ote.gr.
Contacts:
OTE: Dimitris Tzelepis - Head of Investor Relations
Tel: +30 210 611 1574, Email: [email protected]
Maria Kountouri - Assistant to the Head of Investor Relations
Tel: +30 210 611 5381, Email: [email protected]
Nektarios Papagiannakopoulos - Senior Financial Analyst, Investor Relations
Tel. +30 210 611 7593, Email: [email protected]
Christina Hadjigeorgiou - Financial Analyst, Investor Relations
Tel: +30 210 611 1428, Email: [email protected]
Dimitris Tsatsanis - Financial Analyst, Investor Relations
Tel: +30 210 611 6071, Email: [email protected]
Sofia Ziavra - Financial Analyst, Investor Relations
Tel: +30 210 611 8190, Email: [email protected]
Daria Kozanoglou - Senior Communications & Regulatory Affairs Officer, Investor Relations
Tel: +30 210 611 1121, Email: [email protected]
Eftychia Tourna - Communications & Regulatory Affairs Officer, Investor Relations
Tel: +30 210 611 7236, Email: [email protected]
Eleni Agoglossaki - Communications & Regulatory Affairs Officer, Investor Relations
Tel: +30 210 611 7880, Email: [email protected]
Forward-looking statement
Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect the Company's future financial results are discussed more fully in the Company's filings with the U.S. Securities and Exchange Commission (the "SEC"), including the Company's Annual Report on Form 20-F for 2007 filed with the SEC on June 24, 2008. OTE assumes no obligation to update information in this release.
Exhibits to follow:
Consolidated Balance Sheets as of June 30, 2008 and December 31, 2007 (Under IFRS)
Condensed Consolidated Income Statements for the three months and six months ended June 30, 2008 and 2007 (Under IFRS)
Analysis of Group Other Operating Expenses for the three months and six months ended June 30, 2008 and 2007 (Under IFRS)
Condensed Consolidated Statement of Cash Flows for the two quarters and six months ended June 30, 2008 (Under IFRS)
Group Revenues for the three months and six months ended June 30, 2008 and 2007 (Under IFRS)
Segment Reporting based on the Company's legal structure
Mobile Operations
International Operations
Operational Highlights
EXHIBIT I - BALANCE SHEET
|
HELLENIC TELECOMMUNICATIONS ORGANIZATION S.A. (OTE) |
|||||||
|
CONSOLIDATED BALANCE SHEET AS OF JUNE 30, 2008 AND DECEMBER 31, 2007 |
|||||||
|
(€ mn) |
30 Jun 2008 |
31 Dec 2007 |
|||||
|
ASSETS |
|||||||
|
Non - current assets: |
|||||||
|
Property, plant and equipment |
6,176.7 |
6,371.4 |
|||||
|
Goodwill |
531.2 |
541.5 |
|||||
|
Telecommunication licenses |
376.4 |
396.2 |
|||||
|
Investments |
158.2 |
158.4 |
|||||
|
Loans and advances to pension funds |
214.9 |
229.8 |
|||||
|
Deferred income taxes |
92.7 |
94.6 |
|||||
|
Other non-current assets |
678.5 |
678.6 |
|||||
|
Total non - current assets |
8,228.6 |
8,470.5 |
|||||
|
Current assets: |
|||||||
|
Inventories |
192.0 |
201.7 |
|||||
|
Trade accounts receivable |
1,274.6 |
1,172.0 |
|||||
|
Other current assets |
366.0 |
372.5 |
|||||
|
Cash and cash equivalents |
1,456.4 |
1,316.3 |
|||||
|
Total current assets |
3,289.0 |
3,062.5 |
|||||
|
TOTAL ASSETS |
11,517.6 |
11,533.0 |
|||||
|
EQUITY AND LIABILITIES |
|||||||
|
Equity attributable to equity holders of the parent: |
|||||||
|
Share capital |
1,171.5 |
1,171.5 |
|||||
|
Share premium |
488.9 |
485.9 |
|||||
|
Statutory reserve |
312.1 |
312.1 |
|||||
|
Consolidation reserve |
(3,311.2) |
(2,533.8) |
|||||
|
Retained earnings |
2,478.0 |
2,595.8 |
|||||
|
1,139.3 |
2,031.5 |
||||||
|
Minority interests |
940.3 |
1,023.1 |
|||||
|
Total equity |
2,079.6 |
3,054.6 |
|||||
|
Non - current liabilities: |
|||||||
|
Long-term borrowings |
6,024.6 |
3,947.1 |
|||||
|
Provision for staff retirement indemnities |
240.0 |
230.3 |
|||||
|
Cost of voluntary retirement scheme |
222.1 |
217.5 |
|||||
|
Provision for Youth Account |
270.2 |
273.5 |
|||||
|
Other non - current liabilities |
241.1 |
233.6 |
|||||
|
Total non - current liabilities |
6,998.0 |
4,902.0 |
|||||
|
Current liabilities: |
|||||||
|
Trade accounts payable |
833.7 |
931.5 |
|||||
|
Short-term borrowings |
4.8 |
1,497.4 |
|||||
|
Short-term portion of long-term borrowings |
34.4 |
83.3 |
|||||
|
Income tax |
138.1 |
83.0 |
|||||
|
Deferred revenue |
216.0 |
189.2 |
|||||
|
Dividends payable |
370.6 |
4.0 |
|||||
|
Cost of voluntary retirement scheme |
172.3 |
200.2 |
|||||
|
Other current liabilities |
670.1 |
587.8 |
|||||
|
Total current liabilities |
2,440.0 |
3,576.4 |
|||||
|
TOTAL EQUITY AND LIABILITIES |
11,517.6 |
11,533.0 |
|||||
|
Movement in OTE Group Shareholders' equity |
|
|
2008 |
|
|
Shareholders' equity, January 1 |
3,054.6 |
|
Profit for the period |
297.4 |
|
Dividends declared |
(367.6) |
|
Net change of interest in subsidiaries |
(843.2) |
|
Other movements |
(61.6) |
|
(975.0) |
|
|
Shareholders' equity, June 30 |
2,079.6 |
EXHIBIT II - CONSOLIDATED INCOME STATEMENT
HELLENIC TELECOMMUNICATIONS ORGANIZATION S.A. (OTE)
Prepared under IFRS for the three months and six months ended June 30, 2008 and 2007 (€ mn)
|
Q2'08 |
Q2'07 |
% |
H1'08 |
H1'07 |
% |
|
|
Change |
Change |
|||||
|
Revenues: |
||||||
|
Domestic Telephony |
462.3 |
516.5 |
-10.5% |
928.3 |
1,043.3 |
-11.0% |
|
International Telephony |
70.8 |
77.4 |
-8.5% |
149.7 |
148.1 |
1.1% |
|
Mobile Telephony |
603.0 |
551.0 |
9.4% |
1,162.8 |
1,045.3 |
11.2% |
|
Other revenues |
454.4 |
406.4 |
11.8% |
887.2 |
823.2 |
7.8% |
|
Total Revenues |
1,590.5 |
1,551.3 |
2.5% |
3,128.0 |
3,059.9 |
2.2% |
|
Operating Expenses: |
||||||
|
Payroll and employee benefits |
(319.7) |
(317.6) |
0.7% |
(620.2) |
(619.3) |
0.2% |
|
Cost of early retirement programs |
(3.0) |
0.0 |
- |
(44.8) |
(22.1) |
102.7% |
|
Charges from international operators |
(45.4) |
(56.7) |
-19.9% |
(93.5) |
(104.5) |
-10.5% |
|
Charges from domestic telephony operators |
(159.7) |
(165.5) |
-3.5% |
(315.3) |
(319.0) |
-1.2% |
|
Depreciation and amortization |
(290.5) |
(291.5) |
-0.3% |
(584.8) |
(570.8) |
2.5% |
|
Cost of telecommunications equipment |
(157.0) |
(145.2) |
8.1% |
(310.3) |
(298.1) |
4.1% |
|
Other operating expenses |
(326.9) |
(322.0) |
1.5% |
(631.3) |
(613.0) |
3.0% |
|
Total Operating Expenses |
(1,302.2) |
(1,298.5) |
0.3% |
(2,600.2) |
(2,546.8) |
2.1% |
|
Operating income before financial results |
288.3 |
252.8 |
14.0% |
527.8 |
513.1 |
2.9% |
|
Financial results: |
||||||
|
Interest income |
21.5 |
20.6 |
4.4% |
40.0 |
40.4 |
-1.0% |
|
Interest expense |
(79.1) |
(49.4) |
60.1% |
(166.2) |
(106.8) |
55.6% |
|
FX gain/(loss), net |
1.3 |
16.9 |
-92.3% |
7.1 |
22.7 |
-68.7% |
|
Financial net |
(56.3) |
(11.9) |
373.1% |
(119.1) |
(43.7) |
172.5% |
|
Dividends |
12.1 |
16.4 |
-26.2% |
12.1 |
16.4 |
-26.2% |
|
Gains from investments |
3.4 |
0.1 |
- |
17.2 |
12.8 |
34.4% |
|
(40.8) |
4.6 |
- |
(89.8) |
(14.5) |
- |
|
|
Profit before income taxes |
247.5 |
257.4 |
-3.8% |
438.0 |
498.6 |
-12.2% |
|
Income taxes |
(87.0) |
(84.9) |
2.5% |
(140.6) |
(148.4) |
-5.3% |
|
Profit for the period |
160.5 |
172.5 |
-7.0% |
297.4 |
350.2 |
-15.1% |
|
Attributable to: |
||||||
|
Equity holders of the parent |
159.3 |
136.6 |
16.6% |
300.4 |
277.5 |
8.3% |
|
Minority interest |
1.2 |
35.9 |
-96.7% |
(3.0) |
72.7 |
- |
|
160.5 |
172.5 |
-7.0% |
297.4 |
350.2 |
-15.1% |
EXHIBIT III - GROUP OTHER OPERATING EXPENSES ANALYSIS
|
(€ mn) |
Q2'08 |
Q2'07 |
% Change |
H1'08 |
H1'07 |
% Change |
|
Commission to dealers |
55.3 |
48.1 |
15.0% |
120.6 |
104.2 |
15.7% |
|
Repairs, maintenance, cost of materials |
51.4 |
54.8 |
-6.2% |
100.3 |
101.5 |
-1.2% |
|
Provision for doubtful accounts |
22.4 |
20.8 |
7.7% |
47.9 |
43.9 |
9.1% |
|
Advertising |
55.0 |
58.9 |
-6.6% |
98.2 |
101.4 |
-3.2% |
|
Taxes other than income taxes |
19.7 |
18.1 |
8.8% |
31.1 |
29.1 |
6.9% |
|
Other |
123.1 |
121.3 |
1.5% |
233.2 |
232.9 |
0.1% |
|
TOTAL |
326.9 |
322.0 |
1.5% |
631.3 |
613.0 |
3.0% |
EXHIBIT IV - CONSOLIDATED STATEMENT OF CASH FLOWS
HELLENIC TELECOMMUNICATIONS ORGANIZATION S.A. (OTE)
Prepared under IFRS for the two quarters and six months ended June 30, 2008 (€ mn)
|
Q1'08 |
Q2'08 |
H1'08 |
||
|
Cash Flows from Operating Activities: |
||||
|
Profit before taxes |
190.5 |
247.5 |
438.0 |
|
|
Adjustments to reconcile to net cash provided by operating activities: |
||||
|
Depreciation and amortization |
294.3 |
290.5 |
584.8 |
|
|
Cost of early retirement program |
41.8 |
3.0 |
44.8 |
|
|
Provisions |
46.9 |
45.6 |
92.5 |
|
|
Investments and financial income/loss |
(38.1) |
(38.3) |
(76.4) |
|
|
Amortization of advances to pension funds |
8.8 |
8.8 |
17.6 |
|
|
Interest expense |
87.1 |
79.1 |
166.2 |
|
|
Adjustments for working capital movements related to operating activities |
||||
|
Decrease/(increase) in inventories |
4.4 |
5.3 |
9.7 |
|
|
Decrease/(increase) in trade receivables |
(126.1) |
(43.5) |
(169.6) |
|
|
(Decrease)/increase in liabilities |
(150.9) |
(18.2) |
(169.1) |
|
|
Minus: |
||||
|
Interest paid |
(28.5) |
(62.8) |
(91.3) |
|
|
Income taxes paid |
(7.7) |
(73.6) |
(81.3) |
|
|
Net Cash provided by Operating Activities |
322.5 |
443.4 |
765.9 |
|
|
Cash Flows from Investing Activities: |
||||
|
Acquisition of subsidiary or associate, net of cash acquired |
(762.9) |
(86.0) |
(848.9) |
|
|
Loans granted |
- |
(0.3) |
(0.3) |
|
|
Purchase of property, plant and equipment or intangible assets |
(139.0) |
(236.0) |
(375.0) |
|
|
Proceeds from sale of investment |
- |
5.1 |
5.1 |
|
|
Interest received |
10.0 |
16.4 |
26.4 |
|
|
Dividends received |
- |
4.9 |
4.9 |
|
|
Net Cash used in Investing Activities |
(891.9) |
(295.9) |
(1,187.8) |
|
|
Cash Flows from Financing Activities: |
||||
|
Proceeds from minority shareholders for increase of subsidiary's share capital |
16.9 |
0.0 |
16.9 |
|
|
Proceeds from long-term and short-term borrowings |
2,700.0 |
1.3 |
2,701.3 |
|
|
Repayment of long-term and short-term borrowings |
(2,100.8) |
(54.6) |
(2,155.4) |
|
|
Dividends paid |
(0.1) |
(0.7) |
(0.8) |
|
|
Net Cash provided/(used in) by Financing Activities |
616.0 |
(54.0) |
562.0 |
|
|
Net Increase/(Decrease) in Cash and Cash Equivalents |
46.6 |
93.5 |
140.1 |
|
|
Cash and Cash equivalents at beginning of period |
1,316.3 |
1,362.9 |
1,316.3 |
|
|
Cash and Cash Equivalents at end of period |
1,362.9 |
1,456.4 |
1,456.4 |
|
EXHIBIT V - GROUP REVENUES
HELLENIC TELECOMMUNICATIONS ORGANIZATION S.A. (OTE)
Prepared under IFRS for the three months and six months ended June 30, 2008 and 2007 (€ mn)
|
Q2'08 |
Q2'07 |
% Change |
H1'08 |
H1'07 |
% Change |
|||
|
Domestic Telephony: |
||||||||
|
Basic monthly rentals |
232.5 |
248.9 |
-6.6% |
465.5 |
503.0 |
-7.5% |
||
|
Local and long distance calls |
||||||||
|
-Fixed to fixed |
122.0 |
146.1 |
-16.5% |
250.1 |
303.4 |
-17.6% |
||
|
-Fixed to mobile |
83.4 |
|
98.4 |
-15.2% |
165.4 |
|
191.8 |
-13.8% |
|
205.4 |
|
244.5 |
-16.0% |
415.5 |
|
495.2 |
-16.1% |
|
|
Other |
24.4 |
|
23.1 |
5.6% |
47.3 |
|
45.1 |
4.9% |
|
Total Domestic Telephony |
462.3 |
|
516.5 |
-10.5% |
928.3 |
|
1,043.3 |
-11.0% |
|
International Telephony: |
||||||||
|
International traffic |
23.5 |
27.6 |
-14.9% |
47.3 |
55.0 |
-14.0% |
||
|
Payments from mobile operators |
15.5 |
|
12.1 |
28.1% |
27.6 |
|
22.2 |
24.3% |
|
39.0 |
|
39.7 |
-1.8% |
74.9 |
|
77.2 |
-3.0% |
|
|
Payments from International operators |
31.8 |
|
37.7 |
-15.6% |
74.8 |
|
70.9 |
5.5% |
|
Total International Telephony |
70.8 |
|
77.4 |
-8.5% |
149.7 |
|
148.1 |
1.1% |
|
Mobile Telephony |
603.0 |
|
551.0 |
9.4% |
1,162.8 |
|
1,045.3 |
11.2% |
|
Other Revenues: |
||||||||
|
Pre-paid cards |
13.3 |
19.9 |
-33.2% |
25.0 |
39.7 |
-37.0% |
||
|
Directories |
2.3 |
14.1 |
-83.7% |
3.0 |
28.3 |
-89.4% |
||
|
Leased lines and data communications |
91.5 |
69.4 |
31.8% |
169.8 |
132.5 |
28.2% |
||
|
ISDN, connection & monthly charges |
37.3 |
41.7 |
-10.6% |
74.7 |
83.8 |
-10.9% |
||
|
Sales of telecommunication equipment |
155.1 |
139.4 |
11.3% |
308.0 |
292.1 |
5.4% |
||
|
Internet services-ADSL |
56.4 |
56.0 |
0.7% |
111.5 |
104.2 |
7.0% |
||
|
Services rendered |
44.4 |
20.3 |
119.2% |
83.8 |
43.0 |
94.9% |
||
|
Interconnection charges |
30.7 |
21.4 |
43.5% |
59.9 |
46.9 |
27.7% |
||
|
Miscellaneous |
23.4 |
|
24.2 |
-3.3% |
51.5 |
|
52.7 |
-2.3% |
|
Total Other Revenues |
454.4 |
|
406.4 |
11.8% |
887.2 |
|
823.2 |
7.8% |
|
|
|
|
|
|
|
|||
|
Total Revenues |
1,590.5 |
|
1,551.3 |
2.5% |
3,128.0 |
|
3,059.9 |
2.2% |
EXHIBIT VI - SEGMENT REPORTING (H1 2008)
|
HELLENIC TELECOMUNICATIONS ORGANIZATION S.A. (OTE) AND SUBSIDIARIES |
||||||||||
|
Segment Reporting prepared under IFRS, for the six months ended Jun 30, 2008 |
||||||||||
|
(€ mn) |
||||||||||
|
OTE |
Cosmote |
RomTelecom |
All Other |
Total |
Adjustments & Eliminations |
Consolidated |
||||
|
Revenues: |
||||||||||
|
Domestic Telephony |
693.7 |
233.4 |
4.8 |
931.9 |
||||||
|
International Telephony |
103.4 |
52.8 |
4.8 |
161.0 |
||||||
|
Mobile Telephony |
1,265.8 |
1,265.8 |
||||||||
|
Other |
487.7 |
275.7 |
156.2 |
177.2 |
1,096.8 |
|||||
|
Total Revenues |
1,284.8 |
1,541.5 |
442.4 |
186.7 |
3,455.4 |
(327.4) |
3,128.0 |
|||
|
Intersegment Revenues |
(106.5) |
(93.5) |
(9.3) |
(118.1) |
(327.4) |
|||||
|
Revenue from External Customers |
1,178.3 |
1,448.0 |
433.1 |
68.6 |
3,128.0 |
|
3,128.0 |
|||
|
Operating Expenses: |
||||||||||
|
Payroll and employee benefits |
(372.5) |
(117.9) |
(99.7) |
(32.2) |
(622.3) |
2.1 |
(620.2) |
|||
|
Voluntary retirement costs |
(12.2) |
(32.6) |
(44.8) |
(44.8) |
||||||
|
Payments to international operators |
(60.1) |
(17.1) |
(16.2) |
(41.9) |
(135.3) |
41.8 |
(93.5) |
|||
|
Payments to domestic telephony operators |
(147.9) |
(200.0) |
(51.0) |
(0.7) |
(399.6) |
84.3 |
(315.3) |
|||
|
Depreciation and amortization |
(239.2) |
(202.0) |
(122.2) |
(22.1) |
(585.5) |
0.7 |
(584.8) |
|||
|
Cost of equipment & pre-paid cards |
(47.3) |
(255.6) |
(29.6) |
(0.8) |
(333.3) |
23.0 |
(310.3) |
|||
|
Other operating expenses |
(228.6) |
(427.7) |
(88.9) |
(61.0) |
(806.2) |
174.9 |
(631.3) |
|||
|
Total Operating Expenses |
(1,107.8) |
(1,220.3) |
(440.2) |
(158.7) |
(2,927.0) |
326.8 |
(2,600.2) |
|||
|
|
|
|
|
|
|
|
||||
|
Operating Income |
177.0 |
321.2 |
2.2 |
28.0 |
528.4 |
(0.6) |
527.8 |
|||
|
Operating income before depreciation, amortization and voluntary retirement costs |
428.4 |
523.2 |
157.0 |
50.1 |
1,158.7 |
(1.3) |
1,157.4 |
|||
|
as % of Operating revenues |
33.3% |
33.9% |
35.5% |
26.8% |
33.5% |
0.4% |
37.0% |
|||
|
NB: Data includes adjusted Q1'08 figures to reflect absorption of OTEnet within OTE SA |
||||||||||
EXHIBIT VI - SEGMENT REPORTING (H1 2007)
|
HELLENIC TELECOMUNICATIONS ORGANIZATION S.A. (OTE) AND SUBSIDIARIES |
|||||||
|
Segment Reporting prepared under IFRS, for the six months ended Jun 30, 2007 |
|||||||
|
(€ mn) |
|||||||
|
OTE |
Cosmote |
RomTelecom |
All Other |
Total |
Adjustments & Eliminations |
Consolidated |
|
|
Revenues: |
|||||||
|
Domestic Telephony |
764.4 |
275.1 |
5.1 |
1,044.6 |
|||
|
International Telephony |
92.2 |
57.6 |
4.0 |
153.8 |
|||
|
Mobile Telephony |
1,130.7 |
1,130.7 |
|||||
|
Other |
474.8 |
295.3 |
106.7 |
162.6 |
1,039.4 |
||
|
Total Revenues |
1,331.4 |
1,426.0 |
439.4 |
171.7 |
3,368.5 |
(308.6) |
3,059.9 |
|
Intersegment Revenues |
(106.2) |
(89.8) |
(13.7) |
(98.9) |
(308.6) |
||
|
Revenue from External Customers |
1,225.2 |
1,336.2 |
425.7 |
72.8 |
3,059.9 |
|
3,059.9 |
|
Operating Expenses: |
|||||||
|
Payroll and employee benefits |
(370.0) |
(99.2) |
(113.1) |
(35.6) |
(617.9) |
(1.4) |
(619.3) |
|
Voluntary retirement costs |
(22.1) |
(22.1) |
(22.1) |
||||
|
Payments to international operators |
(73.2) |
(17.4) |
(12.4) |
(20.6) |
(123.6) |
19.1 |
(104.5) |
|
Payments to domestic telephony operators |
(161.3) |
(187.1) |
(45.5) |
(0.5) |
(394.4) |
75.4 |
(319.0) |
|
Depreciation and amortization |
(258.9) |
(172.3) |
(120.6) |
(15.6) |
(567.4) |
(3.4) |
(570.8) |
|
Cost of equipment & pre-paid cards |
(49.9) |
(267.9) |
(11.3) |
(0.8) |
(329.9) |
31.8 |
(298.1) |
|
Other operating expenses |
(249.2) |
(390.8) |
(92.5) |
(62.8) |
(795.3) |
182.3 |
(613.0) |
|
Total Operating Expenses |
(1,184.6) |
(1,134.7) |
(395.4) |
(135.9) |
(2,850.6) |
303.8 |
(2,546.8) |
|
|
|
|
|
|
|
|
|
|
Operating Income |
146.8 |
291.3 |
44.0 |
35.8 |
517.9 |
(4.8) |
513.1 |
|
Operating income before depreciation, amortization and voluntary retirement costs |
427.8 |
463.6 |
164.6 |
51.4 |
1,107.4 |
(1.4) |
1,106.0 |
|
as % of Operating revenues |
32.1% |
32.5% |
37.5% |
29.9% |
32.9% |
0.5% |
36.1% |
|
NB: Data adjusted to reflect absorption of OTEnet within OTE SA |
|||||||
EXHIBIT VI - SEGMENT REPORTING (3M 2008)
|
HELLENIC TELECOMUNICATIONS ORGANIZATION S.A. (OTE) AND SUBSIDIARIES |
|||||||
|
Segment Reporting prepared under IFRS, for the three months ended Mar 31, 2008 |
|||||||
|
(€ mn) |
|||||||
|
OTE |
Cosmote |
RomTelecom |
All Other |
Total |
Adjustments & Eliminations |
Consolidated |
|
|
Revenues: |
|||||||
|
Domestic Telephony |
349.1 |
115.9 |
2.1 |
467.1 |
|||
|
International Telephony |
52.9 |
27.8 |
3.8 |
84.5 |
|||
|
Mobile Telephony |
608.4 |
608.4 |
|||||
|
Other |
236.0 |
138.9 |
75.5 |
81.3 |
531.7 |
||
|
Total Revenues |
638.0 |
747.3 |
219.2 |
87.2 |
1,691.7 |
(154.2) |
1,537.5 |
|
Intersegment Revenues |
(49.7) |
(47.5) |
(3.9) |
(53.1) |
(154.2) |
||
|
Revenue from External Customers |
588.3 |
699.8 |
215.3 |
34.1 |
1,537.5 |
|
1,537.5 |
|
Operating Expenses: |
|||||||
|
Payroll and employee benefits |
(180.2) |
(59.0) |
(45.8) |
(15.7) |
(300.7) |
0.2 |
(300.5) |
|
Voluntary retirement costs |
(12.2) |
(29.6) |
(41.8) |
(41.8) |
|||
|
Payments to international operators |
(29.3) |
(7.8) |
(9.3) |
(18.6) |
(65.0) |
16.9 |
(48.1) |
|
Payments to domestic telephony operators |
(72.2) |
(97.4) |
(25.3) |
(0.6) |
(195.5) |
39.9 |
(155.6) |
|
Depreciation and amortization |
(121.5) |
(100.7) |
(60.9) |
(11.6) |
(294.7) |
0.4 |
(294.3) |
|
Cost of equipment & pre-paid cards |
(21.3) |
(129.1) |
(12.0) |
(0.5) |
(162.9) |
9.6 |
(153.3) |
|
Other operating expenses |
(111.8) |
(214.0) |
(41.4) |
(23.8) |
(391.0) |
86.6 |
(304.4) |
|
Total Operating Expenses |
(548.5) |
(608.0) |
(224.3) |
(70.8) |
(1,451.6) |
153.6 |
(1,298.0) |
|
|
|
|
|
|
|
|
|
|
Operating Income |
89.5 |
139.3 |
(5.1) |
16.4 |
240.1 |
(0.6) |
239.5 |
|
Operating income before depreciation, amortization and voluntary retirement costs |
223.2 |
240.0 |
85.4 |
28.0 |
576.6 |
(1.0) |
575.6 |
|
as % of Operating revenues |
35.0% |
32.1% |
39.0% |
32.1% |
34.1% |
0.6% |
37.4% |
|
NB: Data adjusted to reflect absorption of OTEnet within OTE SA |
|||||||
EXHIBIT VI - SEGMENT REPORTING (3M 2007)
|
HELLENIC TELECOMUNICATIONS ORGANIZATION S.A. (OTE) AND SUBSIDIARIES |
|||||||
|
Segment Reporting prepared under IFRS, for the three months ended Mar 31, 2007 |
|||||||
|
(€ mn) |
|||||||
|
OTE |
Cosmote |
RomTelecom |
All Other |
Total |
Adjustments & Eliminations |
Consolidated |
|
|
Revenues: |
|||||||
|
Domestic Telephony |
384.0 |
141.0 |
2.6 |
527.6 |
|||
|
International Telephony |
40.7 |
28.3 |
2.0 |
71.0 |
|||
|
Mobile Telephony |
533.4 |
533.4 |
|||||
|
Other |
242.2 |
154.2 |
52.8 |
70.1 |
519.3 |
||
|
Total Revenues |
666.9 |
687.6 |
222.1 |
74.7 |
1,651.3 |
(142.7) |
1,508.6 |
|
Intersegment Revenues |
(50.3) |
(40.6) |
(6.1) |
(45.7) |
(142.7) |
||
|
Revenue from External Customers |
616.6 |
647.0 |
216.0 |
29.0 |
1,508.6 |
|
1,508.6 |
|
Operating Expenses: |
|||||||
|
Payroll and employee benefits |
(182.9) |
(48.6) |
(54.6) |
(16.5) |
(302.6) |
0.9 |
(301.7) |
|
Voluntary retirement costs |
(22.1) |
(22.1) |
(22.1) |
||||
|
Payments to international operators |
(35.0) |
(8.2) |
(5.9) |
(0.7) |
(49.8) |
2.0 |
(47.8) |
|
Payments to domestic telephony operators |
(78.2) |
(89.3) |
(21.6) |
(0.2) |
(189.3) |
35.8 |
(153.5) |
|
Depreciation and amortization |
(131.3) |
(84.9) |
(55.0) |
(8.6) |
(279.8) |
0.5 |
(279.3) |
|
Cost of equipment & pre-paid cards |
(21.0) |
(136.2) |
(6.1) |
(0.4) |
(163.7) |
10.8 |
(152.9) |
|
Other operating expenses |
(121.5) |
(190.1) |
(43.2) |
(26.6) |
(381.4) |
90.4 |
(291.0) |
|
Total Operating Expenses |
(592.0) |
(557.3) |
(186.4) |
(53.0) |
(1,388.7) |
140.4 |
(1,248.3) |
|
|
|
|
|
|
|
|
|
|
Operating Income |
74.9 |
130.3 |
35.7 |
21.7 |
262.6 |
(2.3) |
260.3 |
|
Operating income before depreciation, amortization and voluntary retirement costs |
228.3 |
215.2 |
90.7 |
30.3 |
564.5 |
(2.8) |
561.7 |
|
as % of Operating revenues |
34.2% |
31.3% |
40.8% |
40.6% |
34.2% |
2.0% |
37.2% |
|
NB: Data adjusted to reflect absorption of OTEnet within OTE SA |
|||||||
EXHIBIT VII - MOBILE OPERATIONS
COSMOTE MOBILE TELECOMMUNICATIONS AND SUBSIDIARIES
Prepared under IFRS for the three months and six months ended June 30, 2008 and 2007
(€ thousand)
|
Q2'08 |
Q2'07 |
% |
H1'08 |
H1'07 |
% |
|
|
Change |
Change |
|||||
|
Revenues: |
||||||
|
Monthly service fees |
181,630 |
149,852 |
21.2% |
358,272 |
292,099 |
22.7% |
|
Airtime revenues |
267,617 |
245,069 |
9.2% |
507,190 |
463,434 |
9.4% |
|
Interconnection revenues |
147,276 |
137,740 |
6.9% |
284,348 |
261,454 |
8.8% |
|
Roaming revenues |
14,460 |
19,431 |
-25.6% |
21,385 |
26,580 |
-19.5% |
|
SMS revenues and other services |
46,410 |
45,167 |
2.8% |
94,613 |
87,087 |
8.6% |
|
Sales of handsets and accessories |
130,434 |
135,299 |
-3.6% |
265,157 |
277,537 |
-4.5% |
|
Commission revenues |
751 |
991 |
-24.2% |
751 |
8,718 |
-91.4% |
|
Other operating revenues |
5,643 |
4,828 |
16.9% |
9,826 |
9,088 |
8.1% |
|
Total Revenues |
794,221 |
738,377 |
7.6% |
1,541,542 |
1,425,997 |
8.1% |
|
Revenues from telecommunication services |
657,393 |
597,259 |
10.1% |
1,265,808 |
1,130,654 |
12.0% |
|
Operating Expenses: |
||||||
|
Interconnection |
(111,825) |
(107,026) |
4.5% |
(217,032) |
(204,475) |
6.1% |
|
Cost of goods |
(124,241) |
(131,571) |
-5.6% |
(253,043) |
(265,772) |
-4.8% |
|
Payroll |
(59,187) |
(50,823) |
16.5% |
(118,549) |
(99,696) |
18.9% |
|
Network operating costs |
(54,184) |
(49,465) |
9.5% |
(106,352) |
(96,694) |
10.0% |
|
Distribution & sales |
(85,313) |
(77,518) |
10.1% |
(178,211) |
(159,347) |
11.8% |
|
Marketing & Customer care |
(43,338) |
(44,442) |
-2.5% |
(81,162) |
(79,794) |
1.7% |
|
General & administrative |
(24,963) |
(23,147) |
7.8% |
(49,062) |
(44,778) |
9.6% |
|
Provision for doubtful accounts |
(7,974) |
(6,006) |
32.8% |
(14,890) |
(11,882) |
25.3% |
|
Depreciation |
(101,288) |
(87,375) |
15.9% |
(202,022) |
(172,268) |
17.3% |
|
Total Operating Expenses |
(612,313) |
(577,373) |
6.1% |
(1,220,323) |
(1,134,706) |
7.5% |
|
Operating Income |
181,908 |
161,004 |
13.0% |
321,219 |
291,291 |
10.3% |
|
Operating income before depreciation and amortization |
283,196 |
248,379 |
14.0% |
523,241 |
463,559 |
12.9% |
|
as % of Operating revenues |
35.7% |
33.6% |
33.9% |
32.5% |
COSMOTE Greece (stand alone)
|
(€ thousand) |
Q2'08 |
Q2'07 |
% |
H1'08 |
H1'07 |
% |
|
Change |
Change |
|||||
|
Revenues: |
||||||
|
Telecommunication services fees & revenues |
349,206 |
326,161 |
7.1% |
673,432 |
615,804 |
9.4% |
|
Interconnection revenues |
90,552 |
91,699 |
-1.3% |
176,828 |
176,016 |
0.5% |
|
Other operating revenues & sales of merchandising |
15,637 |
18,112 |
-13.7% |
29,514 |
34,136 |
-13.5% |
|
Total Revenues |
455,395 |
435,972 |
4.5% |
879,774 |
825,956 |
6.5% |
|
Total Operating Expenses |
(302,436) |
(292,966) |
3.2% |
(593,747) |
(564,711) |
5.1% |
|
Operating Income |
152,959 |
143,006 |
7.0% |
286,027 |
261,245 |
9.5% |
|
Operating income before depreciation and amortization |
194,339 |
183,489 |
5.9% |
369,878 |
341,604 |
8.3% |
|
as % of Operating revenues |
42.7% |
42.1% |
42.0% |
41.4% |
ALBANIAN MOBILE COMMUNICATIONS (AMC, stand alone)
|
(€ thousand) |
Q2'08 |
Q2'07 |
% |
H1'08 |
H1'07 |
% |
|
Change |
Change |
|||||
|
Revenues: |
||||||
|
Telecommunication services fees & revenues |
30,094 |
27,879 |
7.9% |
60,234 |
56,677 |
6.3% |
|
Interconnection revenues |
15,309 |
13,069 |
17.1% |
29,321 |
24,660 |
18.9% |
|
Other operating revenues & sales of merchandising |
912 |
198 |
360.6% |
1,807 |
335 |
439.4% |
|
Total Revenues |
46,315 |
41,146 |
12.6% |
91,362 |
81,672 |
11.9% |
|
Total Operating Expenses |
(23,347) |
(21,851) |
6.8% |
(45,229) |
(43,401) |
4.2% |
|
Operating Income |
22,968 |
19,295 |
19.0% |
46,133 |
38,271 |
20.5% |
|
Operating income before depreciation and amortization |
28,982 |
25,359 |
14.3% |
58,054 |
50,607 |
14.7% |
|
as % of Operating revenues |
62.6% |
61.6% |
63.5% |
62.0% |
GLOBUL (stand alone)
|
(€ thousand) |
Q2'08 |
Q2'07 |
% |
H1'08 |
H1'07 |
% |
|
Change |
Change |
|||||
|
Revenues: |
||||||
|
Telecommunication services fees & revenues |
75,810 |
68,971 |
9.9% |
146,284 |
131,353 |
11.4% |
|
Interconnection revenues |
26,881 |
23,269 |
15.5% |
51,391 |
43,999 |
16.8% |
|
Other operating revenues & sales of merchandising |
6,397 |
7,666 |
-16.6% |
12,531 |
15,970 |
-21.5% |
|
Total Revenues |
109,088 |
99,906 |
9.2% |
210,206 |
191,322 |
9.9% |
|
Total Operating Expenses |
(87,525) |
(81,720) |
7.1% |
(171,253) |
(157,521) |
8.7% |
|
Operating Income |
21,563 |
18,186 |
18.6% |
38,953 |
33,801 |
15.2% |
|
Operating income before depreciation and amortization |
45,435 |
37,998 |
19.6% |
85,758 |
73,391 |
16.9% |
|
as % of Operating revenues |
41.6% |
38.0% |
40.8% |
38.4% |
COSMOFON (stand alone)
|
(€ thousand) |
Q2'08 |
Q2'07 |
% |
H1'08 |
H1'07 |
% |
|
Change |
Change |
|||||
|
Revenues: |
||||||
|
Telecommunication services fees & revenues |
11,180 |
10,819 |
3.3% |
21,652 |
20,577 |
5.2% |
|
Interconnection revenues |
3,521 |
3,427 |
2.7% |
6,783 |
6,512 |
4.2% |
|
Other operating revenues & sales of merchandising |
756 |
945 |
-20.0% |
1,597 |
2,076 |
-23.1% |
|
Total Revenues |
15,457 |
15,191 |
1.8% |
30,032 |
29,165 |
3.0% |
|
Total Operating Expenses |
(15,193) |
(14,732) |
3.1% |
(30,654) |
(29,106) |
5.3% |
|
Operating Income/Loss |
264 |
459 |
-42.5% |
(622) |
59 |
- |
|
Operating income before depreciation and amortization |
4,785 |
4,750 |
0.7% |
8,385 |
8,177 |
2.5% |
|
as % of Operating revenues |
31.0% |
31.3% |
27.9% |
28.0% |
COSMOTE Romania (stand alone)
|
(€ thousand) |
Q2'08 |
Q2'07 |
% |
H1'08 |
H1'07 |
% |
|
Change |
Change |
|||||
|
Revenues: |
||||||
|
Telecommunication services fees & revenues |
46,133 |
26,359 |
75.0% |
84,011 |
45,865 |
83.2% |
|
Interconnection revenues |
15,979 |
8,299 |
92.5% |
29,404 |
14,114 |
108.3% |
|
Other operating revenues & sales of merchandising |
1,444 |
1,576 |
-8.4% |
3,390 |
3,642 |
-6.9% |
|
Total Revenues |
63,556 |
36,234 |
75.4% |
116,805 |
63,621 |
83.6% |
|
Total Operating Expenses |
(77,034) |
(54,478) |
41.4% |
(156,084) |
(101,232) |
54.2% |
|
Operating Loss |
(13,478) |
(18,244) |
-26.1% |
(39,279) |
(37,611) |
4.4% |
|
Operating income before depreciation and amortization |
5,011 |
(8,028) |
-162.4% |
(2,696) |
(18,570) |
-85.5% |
|
as % of Operating revenues |
7.9% |
- |
- |
- |
GERMANOS
|
(€ thousand) |
Q2'08 |
Q2'07 |
% |
H1'08 |
H1'07 |
% |
|
Change |
Change |
|||||
|
Revenues: |
||||||
|
Commission Revenues |
52,239 |
44,294 |
17.9% |
105,160 |
86,941 |
21.0% |
|
Sales of merchandising |
187,639 |
174,801 |
7.3% |
371,307 |
333,091 |
11.5% |
|
Other operating revenues |
5,883 |
4,001 |
47.0% |
9,978 |
7,610 |
31.1% |
|
Total Revenues |
245,761 |
223,096 |
10.2% |
486,445 |
427,642 |
13.8% |
|
Total Operating Expenses |
(244,357) |
(217,755) |
12.2% |
(486,345) |
(416,900) |
16.7% |
|
Operating Income |
1,404 |
5,341 |
-73.7% |
100 |
10,742 |
-99.1% |
|
Operating income before depreciation and amortization |
5,275 |
8,379 |
-37.0% |
7,772 |
16,622 |
-53.2% |
|
as % of Operating revenues |
2.1% |
3.8% |
1.6% |
3.9% |
EXHIBIT VIII - INTERNATIONAL OPERATIONS
RomTelecom
OTE has a 54.01% stake in RomTelecom, which is fully consolidated.
|
ROMTELECOM |
|
|
INCOME STATEMENT |
|
|
For the six months ended June 30 2008, |
|
|
in accordance with IFRS (€ thousand) |
|
|
H1 2008 |
|
|
Basic monthly rentals |
146,643 |
|
Domestic Telephony calls |
86,713 |
|
Domestic Telephony |
233,356 |
|
International Telephony |
52,770 |
|
Other Revenues |
156,236 |
|
Total Operating Revenues |
442,362 |
|
Personnel (inc Voluntary Redundancy) |
(132,332) |
|
Other operating expenses |
(185,693) |
|
Depreciation and Amortization |
(140,425) |
|
Total Operating expenses |
(458,450) |
|
Operating income/((loss) |
(16,088) |
EXHIBIT IX -OPERATIONAL HIGHLIGHTS
|
Operational Highlights for the quarters |
|||
|
ended June 30, 2008 and 2007 |
|||
|
OTE |
Q2'08 |
Q2'07 |
% Change |
|
PSTN lines |
4,304,679 |
4,702,407 |
-8.5% |
|
ISDN, 64kb equiv. lines |
1,308,584 |
1,379,596 |
-5.1% |
|
Total lines |
5,613,263 |
6,082,003 |
-7.7% |
|
|
|
||
|
ADSL subscribers |
892,490 |
674,680 |
32.3% |
|
Unbundled local loops |
499,579 |
112,356 |
344.6% |
|
|
|
||
|
COSMOTE (Greece) |
|
||
|
Total subscribers |
6,920,907 |
5,683,633 |
21.8% |
|
|
|
||
|
AMC |
|
||
|
Total subscribers |
1,280,181 |
1,090,939 |
17.3% |
|
|
|
||
|
GLOBUL |
|
||
|
Total subscribers |
3,945,255 |
3,573,172 |
10.4% |
|
|
|
||
|
COSMOFON |
|
||
|
Total subscribers |
639,765 |
515,785 |
24.0% |
|
|
|
||
|
COSMOTE ROMANIA |
|
||
|
Total subscribers |
4,642,525 |
2,216,465 |
109.5% |
|
|
|
||
|
Employees: |
|
||
|
-OTE |
12,123 |
11,536 |
5.1% |
|
-COSMOTE (Greece) |
2,220 |
2,163 |
2.6% |
|
-RomTelecom |
10,523 |
12,242 |
-14.0% |
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