OTE΄s Q3 Net At EUR126.3 Mil.
Greece’s OTE Group Thursday said that for the three months to September, net profit fell to EUR126.3 million from an adjusted EUR165 million a year earlier, while revenue slipped 7.8% to EUR1.39 billion from an adjusted EUR1.51 billion.
The telecommunications company cited a deteriorating consumer environment and intense competition across all countries in which it operates.
“The Group’s performance in the third quarter of 2010 is illustrative both of the accomplishments of the past years and of the challenges we still face. Under the stewardship of Mr. Vourloumis over the past six years, the business has changed dramatically, and so has its operating environment. Fixed-line voice telephony, which accounted for over two-thirds of OTE’s revenues in 2004, now contributes barely more than one-third of the total, as we built a regional powerhouse in mobile, broadband, and – increasingly – other value-added services as well. Parallel to this, we still have much work to do to reform our organization and complete its transformation into a market-driven competitor with a rational cost structure,” said newly-appointed Chairman and Chief Executive Michael Tsamaz.
“My first priority as I assume this new role will be to ensure that all users of our services enjoy a superior customer experience and that all our brands become synonymous with uncompromising quality. I believe that putting the customer at the center of everything we do is the key to raising the motivation and professional standards of all OTE people and to maximizing returns for all our shareholder," he added.
Total Operating Expenses excluding depreciation & amortization amounted to EUR901.5mn in Q3’10, declining by 3.6% from the comparable 2009 quarter, mainly reflecting lower charges from domestic telephony operators. Personnel expenses decreased by 5.4%, largely due to a 7.2% drop in Greek fixed-line payroll, positively affected by the reversal of a EUR4.5mn provision for employee bonuses. Provisions for doubtful accounts were up sharply from an exceptionally low level in Q3’09, when they had benefited from the sale of bad debt receivables at Globul as well as below-average charges in Greek fixed-line following two quarters of high provisioning.
Capital expenditures decreased by 13.7% in Q3’10 compared to Q3’09, reaching EUR169.3mn, reflecting lower investments at most companies of the Group. Total CAPEX as a percentage of Group revenues in Q3’10 was 12.2%, as compared to 13.0% in Q3’09. Capital expenditures in Greek fixed-line, Romanian fixed-line, and mobile operations amounted to EUR48.6mn, EUR24.5mn and EUR93.3mn, respectively.
(Capital.gr)
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Corporate.