“The slowdown in revenue erosion largely reflects improving retail revenue trends, down just 3% in the 12 months ended in December 2012 (versus 10.1% in the year before), while wholesale revenues were down by 11.2% mainly due to the reduction in termination rates,” the report reads.
OTE also owns in Romania mobile operator Cosmote and the store chain Germanos.
Romtelecom’s earnings before interest, tax, depreciation and amortization (EBITDA) rose 39.5% to EUR166.1 million in 2012, compared to EUR119.1 million in 2011, due to lower costs.
According to the report, Romtelecom will continue to focus in 2013 on customized services, mainly on TV services, as well as on entertainment services. Also, Romtelecom will continue to focus on new IT&C services and will defend its position on the business market.
Romtelecom’s total operating costs fell 9.5% in 2012, due to a 7% cut in staff expenses.
The number of subscribers to broadband Internet services rose 5.3% to 1.196 million in 2012, compared to 1.136 million in 2011. Also, the number of subscribers to TV services (satellite television, IPTV and cable) rose 7.3% to 1.265 million, from 1.179 million in 2011. The number of subscribers to voice services fell 6.5% to 2.329 million in 2012, from 2.49 million in 2011.
Romtelecom’s revenue from TV services advanced 11.6% on the year in the fourth quarter of 2012, reflecting the migration of clients towards services with higher added value. Romtelecom’s total revenue fell 8% to EUR149.6 million in the fourth quarter of 2012, compared to EUR162.6 million in the same period a year ago, due to MTR cuts.
The company’s EBITDA rose 31.8% to EUR40.6 million in the fourth quarter of 2012, from EUR30.8 million in the year-earlier period, while total operating costs, excluding depreciation, amortization and impairment, fell 15.4% on the year in the fourth quarter.