Cosmote CEO may also take helm of Romtelecom

Stefanos Theocharopoulos, 43, currently CEO of mobile operator Cosmote Romania, may also be appointed as head of TV, internet and telephony operator Romtelecom, according to media reports.

None of the companies wanted to comment the information, when asked by BR.

Both Romtelecom and Cosmote are part of the Greek company OTE. At the moment, Romtelecom is led by GM Yorgos Ioannidis, 61.

“This has happened in other places where Deutsche Telekom or OTE changed the management. The mobile industry is much more efficient from the point of view of the costs. It is a logical move, as a general principle, to prefer to have the management of the mobile company at the top,” says Nicu Pana, independent telecom consultant, commenting for Business Review. “However, I do not expect the entire management of Romtelecom will be changed,” he added.

“What will happen most likely will be a much higher level of integration from the point of view of the offers made to the end user. A first step in this direction has already been made. I expect for instance that Romtelecom will push the voice and data of Cosmote much more forward, there will be a better integration of the sales channels and a coordination of the management of the two companies. But I expect the two companies will remain separate entities,” says Pana.

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He also adds that he expects there will be high demands regarding the EBITDA from the new management.

The revenues of Cosmote in Romania decreased by 6.5 percent down to EUR 107.3 million. The company’s EBITDA increased from EUR 6.6 million in the first quarter of last year to EUR 17.9 million in Q1, 2011.

Romtelecom revenues went down by 10.9 percent in the first quarter of this year on the similar period of last year to EUR 166.3 million.

The company’s EBITDA plunged by 62.6 percent in the first quarter, down to EUR 22.2 million. However, the EBITDA which does not include restructuration costs was EUR 42.9 million, according to the report of the Greek company OTE.

Romtelecom announced at the beginning of the year that it would start an efficiency program via which it will axe 1,400 positions.

Representatives of the Romanian state will meet representatives of OTE and Deutsche Telekom to make a final decision regarding the takeover of the shares the state owns in Romtelecom. OTE has a 54.01 percent stake in Romtelecom while the Romanian state has the remaining 45.99 percent of the shares, which it evaluates at EUR 1 billion.

Deutsche Telekom is also present in Romania since it holds a 30 percent stake in OTE.

 Otilia Haraga