OTE Group reports improved Q2 results

OTE Group on Thursday reported good performance in Greece, with increased revenue and EBITDA and strong free cash flows increased by 52.3 pct in the second quarter of 2019.

Consolidated revenue rose 0.4 pct to 946.9 million euros compared with the same period last year, while adjusted EBITDA rose 1.7 pct to 321.9 million euros and adjusted EBITDA margin rising to 34 pct.

In Greece. adjusted EBITDA rose 4.7 pct to 292.1 million euros and the adjusted EBITDA at 40.6 pct. Adjusted profits after minorities rose 54.1 pct to 98.5 million euros in the second quarter of 2019, with free cash flows totaling 172.7 million euros. Revenue rose 1.2 pct to 719.6 million euros.

In Romania, revenue fell 2.8 pct to 231.2 million euros in the second quarter 2019 compared with the same period last year, but rose 6.7 pct on a quarterly basis.

Total Operating Expenses, excluding depreciation, amortization, impairment and charges related to restructuring costs (primarily voluntary leave schemes), amounted to 609.3 million euros, a 5.2% decrease from 2018, The Group reported Operating profit before financial and investing activities of 19.6 million euros, compared to 96.2 million in 2018 reflecting goodwill impairment charges related to its Romanian mobile operations.

The Group’s adjusted Net Debt before IFRS 16 was 601.6 million euros at June 30, 2019, down 13.1% compared to June 30, 2018.

In Greece, where the economic recovery is gaining momentum, OTE expects to further benefit from its investments in advanced data networks in both fixed and mobile, as well as from the customer-centric strategy that has supported its revenue growth in the past years. Performance in Romania is expected to stabilize following the 2018 one-off items and measures currently being implemented.

Commenting on OTE’s 2019 second-quarter performances, Michael Tsamaz, Chairman & CEO, noted: “We had a good second quarter, very much in line with the trends since the beginning of the year. In Greece, retail revenues were up in both fixed and mobile, with steady progressions in fixed broadband and prepaid mobile. Operating metrics are for the most part pointing in the right direction, with a notable quarterly record number of fiber additions, underscoring the Greek consumers’ willingness to upgrade services whenever the value proposition is appealing. In Romania, where the market is showing signs of recovery, we are working hard to strengthen our offers and streamline our operations, including a transformation plan expected to be implemented in coming quarters. Group EBITDA margin was up solidly, driven by a significant improvement in Greece.”

Mr. Tsamaz added: “In a global environment that is supportive of innovation and modernization and as the outlook for the Greek economy improves, we are stepping up the pace of our transformation, leveraging the benefits of digitalization, and redesigning our operational model.”