Romtelecom’s revenues down by 7 percent in Q2

Newsroom 04/08/2011 | 16:28

The revenues of telecom operator Romtelecom declined by 7.1 percent down to EUR 166.1 million in the second quarter of the year compared to the similar period last year.

However, the operator’s EBITDA went up by 19.7 percent reaching EUR 29.2 million, according to the report of the Greek Group OTE which is major shareholder in Romtelecom.

The number of Romtelecom clients decreased in the landline telephony sector and now totals nearly 2.6 million. However, the company gained more customers in internet services, the number of clients having increased by 23.1 percent to approximately 1.08 million users.

Romtelecom also posted growth in the Tv subscriber base which went up by 31 percent reaching 1.2 million.

“While the economy showed signs of stabilization in the second quarter of the year, the Romanian telecom market remained very competitive, putting pressure on all operators,” said Anastasios Tzoulas, CFO of Romtelecom.

 The total number of revenue generating units reached approximately 4.9 million at the end of the first half of this year, which represents 8.3 percent growth on the previous half year.

The control of the costs remained a priority during this period, reflected in an 11 percent decrease in operational expenses in the second quarter of 2011 compared to the second quarter of 2010.

“This reflects first of all an increased productivity generated by the combined effort of a significant fall in the number of employees (approximately 1,500 less compared to the half of 2010) in parallel with a growth in the number of revenue generating units which amounted to 8.3 percent. It is to be expected that the transformation program implemented in the first half of the year continues to produce positive effects on the financial results in the next quarters,” said Tzoulas.

 At this moment, Romtelecom and its satellite company NextGen have approximatelz 7,500 employees.

 “Among the employees that chose to go into the labor force placement program in 2010, 90 percent already have a workplace and for 2011, the ratio is 38 percent after only three months, according to Anca Georgescu, HR executive manager in Romtelecom.

The current general manager of Romtelecom since July 1 is Stefanos Theocharopoulos, also CEO of Cosmote Romania.

Since May 2007 until June 2011, Romtelecom was led by Yorgos Ioannidis, who has now became part of the administration board of IT company TotalSoft. He will be involved in the strategic decision process of the company over the next years.

However, he will not have executive activities in TotalSoft, according to Liviu Dragan, GM of TotalSoft.

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