Romtelecom registered revenues of EUR332.4 million and EBITDA of EUR51.4 million in the first half of 2011, Greek group OTE, owner of Romtelecom, said in a report Thursday.
Romtelecom’s operating profit before interest and taxes amounted to EUR25.3 million in the first semester, versus losses of EUR28.7 million in the similar interval a year ago.
Romtelecom registered no expenses with voluntary leave programs in the first six months. Costs entailed by the company’s voluntary leave program stood at EUR27.9 million in the same timeframe a year ago.
The number of Romtelecom’s voice services clients dropped 6%, to 2.404 million, from 2.558 million at the end of June last year.
On the broadband Internet segment, the company’s number of subscribers climbed about 8% to 1.169 million, from 1.084 million. Broadband penetration as a percentage of total Romtelecom voice connections rose to 49%.
Penetration of television services exceeded 50% for the first time, although the number of TV service clients dropped 1.2% to 1.207 million from 1.222 million at the end of June 2011.
In the second quarter of 2012, Romtelecom’s revenues dropped 5.9% to EUR156.3 million, from EUR166.1 million in the same interval a year ago.
Its EBITDA climbed 38.4% in the second quarter to EUR40.4 million, from EUR29.2 million. The company’s operating profit stood at EUR11.5 million in April-June, versus a loss of EUR12 million in April-June 2011.
Romtelecom’s operating expenses dropped 9% in the second quarter and staff expenses fell 11.7%, said OTE.
“While the Romanian economic situation remained affected by the uncertainties of the eurozone, leading to a downward revision of 2012 GDP growth estimates to 1.4%, Romtelecom turned in a solid operating and financial performance in the second quarter. In particular, the company managed to limit the drop in retail revenues to 3.5% in Q2’12, as lower voice service revenues and equipment sales were largely offset by sharp increases in broadband and TV services,” reads the report.
Wholesale revenues declined 9% in the second quarter, mainly reflecting Romanian authorities’ decision to cut mobile telephony interconnection fees.
At the beginning of 2012, Romanian telecom regulator ANCOM announced the reduction of mobile and landline telephony interconnection fees by more than 30% this year, meaning clients will be charged less for calls outside their network.