Telekom Romania’s TV subscriber total as the end of Q2 was virtually unchanged on a year at 1,470,692 (+0.6%), as was its broadband customer base at 1,185,687 (-0.7%).
However, while the OTE-backed company’s total fixed line revenues in Q2 were, at €151.6 million, 1.4% higher than a year earlier, those for retail fixed services were down by 4.8% to €72.9 million. TV revenues rose by 4% year-on-year, while broadband revenues were 0.5% lower than in Q2 2016. Total revenues for the group in Romania were €235.5 million (-2.6%) in Q2, while combined adjusted EBITDA was €39.2 million (+5.9%).
In its latest set of results, OTE notes that commercially its focus is now on convergent bundles, including fixed, mobile and TV.
Meanwhile, in its home market Greece OTE saw a sharp rise in the take up of its Cosmote TV service, with the number of subscribers as of the end of Q2 amounting to 503,800 (+9.8% year-on-year). However, it actually fell by 1,000 in Q2, due to the maturity of the market, an additional taxation on pay-TV subscriptions implemented last year and a seasonal slowdown.
Commenting on the results, Michael Tsamaz, chairman & CEO, said: “We are pleased to report a solid three months of operations, marked by the first quarter of EBITDA growth in our Greek mobile activities in five years. At the top-line level, Greek fixed and mobile operations achieved higher revenues, supported by our continued success in providing adapted, cost-effective solutions to our clients. Broadband was strong, particularly VDSL, resulting from the extended reach of our network. Greek mobile service revenues turned positive, reversing a multi-year downtrend. In Romania, the ongoing success of our FMC service provided support to the fixed business. Our progress on the revenue front goes hand in hand with unwavering cost control, a priority if we want to convert revenues into EBITDA growth and cash flow generation in a period of accelerated investments”.
He added: “We are continuing to invest aggressively in the solutions that will drive future growth and customer satisfaction. In the first six months of the year, the percentage of revenues we reinvested in networks and content rose considerably. We are more than ever convinced this is the right approach as Greece shows promising early signs of recovery.”
