Romtelecom revenues decrease by 11 percent down to EUR 166.3mln in Q1

Newsroom 10/05/2011 | 09:16

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

The company’s EBITDA plummeted 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.

“The financial results in the first quarter of 2011 signal a certain stabilization compared to the previous quarter last year. Thus, revenues posted a moderate reduction after a year of crisis of 2.3 percent compared to the last quarter of 2010, while the EBITDA, without including restructuration costs, would have been some percentage points higher compared to the last quarter of 2010,” says Yorgos Ioannidis, Romtelecom general manager.

The company’s customer base in the landline telephony sector continued to diminish, and Romtelecom lost 5.1 percent of its customers down to 2.57 million landline subscribers.

However, the number of internet clients increased by 24.5 percent in Q1, 2011, reaching in excess of 1 million clients. Also, Romtelecom’s TV customer base grew reaching also in excess of 1 million clients, which represented a 14.9 percent growth compared to the first quarter of 2010.

“Significant efforts were made to keep under control the company’s costs- operational costs decreased by 3 percent in this quarter, and also to fiind new ways to increase productivity, in order to be able to cater for a larger number of clients with a lower number of employees,” said Ioannidis.

Otilia Haraga

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