Romtelecom’s revenues dip by 9 percent in Q1, on lower interconnection tariffs

Newsroom 08/05/2013 | 10:58

The revenues of telecom operator Romtelecom saw a decrease of 9.2 percent to EUR 145.5 million in the first quarter of the year, compared to the previous quarter.

The company’s EBITDA went down by 5.7 percent to EUR 38.1 million but the profitability margin improved due to cost reduction measures, the company states.

Cost reduction measures led to a 11.5 percent decrease in total operational expenses in the first quarter while personnel expenses remained the same. The company had costs of EUR 1.4 million with the personnel redundancy program.

According to OTE Group, Romtelecom’s main shareholder, the fixed voice services saw a 16 percent decrease while revenues from interconnection tariffs also had an impact, falling by 24 percent.

Revenues from TV services surged by 9.2 percent while broadband internet operations also posted positive growth of 6.5 percent.

“The first quarter of 2013 continued the stabilization trend announced by the company last year, with one digit percentage variations compared to the first quarter of 2012 as far as revenues, EBITDA, Pro Forma EBITDA or operational profit are concerned. The main services, other than voice services, continued to post good results, with TV and internet access services seeing 9.2 percent and 6.5 percent growth respectively, compared to the similar period of last year while ICT services had revenues growth of nearly 30 percent. This growth managed to moderate the decrease in revenues generated by voice services,” commented Anastasios Tzoulas, CFO of Romtelecom.

For the business segment, Tzoulas estimates that data&internet and ICT services will continue to be the main engines of growth apart from BPO and cloud computing services.

Otilia Haraga

 

 

 

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