“On August 29, 2013, the Romtelecom shareholders approved the following agenda: a decision on the use of Romtelecom’s profit for the financial year ended December 31, 2012. During this Ordinary General Meeting, the Romtelecom shareholders voted unanimously as follows: To postpone a decision on the use of the Romtelecom profit for the financial year ended December 31, 2012,” reveals a document recently published in the Official Gazette.
Romtelecom, in which OTE owns 54% and the Romanian government 46%, posted EUR70.2 million net profit last year.
Has a decision been made since then? No, OTE officials told ZF, who said no conclusion on the subject had been reached yet and would be considered again in due time, without providing further details.
It is not clear whether OTE and the Ministry disagree over the use of the profit of whether the decision was postponed, as the Romanian government is getting ready to sell its remaining 46% in Romtelecom. The shareholders can choose one of two options: either reinvest the profit or pay dividends to OTE and the Ministry of Communications and Information Society.
Sources close to the Ministry say the institution would rather have the dividends, but the decision rests with the majority shareholder, OTE.
The Ministry officials had not returned the calls for comment by the time the story was ready for posting.
Romtelecom paid EUR94 million in dividends from its 2006 and 2007 profit to OTE and the Romanian government in 2011.
Romtelecom posted EUR612 million revenue last year. It is the leading provider of landline telephony services and the second leading provider of fixed Internet and TV services. OTE also owns cell phone operator Cosmote, which ranks third in its business and telecom retailer Germanos.
OTE’s combined Romanian operations generate more than EUR1.1 billion revenue.
(English version by Loredana Fratila-Cristescu)