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RomTelecom posts 213m-euro profit

RomTelecom posts 213m-euro profit
01.12.2005, 20:40 7

RomTelecom''s profits are almost four times higher than in the same period of last year.

The company''s officials said that, in the first nine months of this year, operational revenues climbed by 11.7%, to 690.7 million euros.

One of the main reasons behind the higher figures is the elimination from the balance sheet of the results and debts accumulated by the former mobile telephony unit of RomTelecom, CosmoRom, according to the officials of the Greek group OTE, a company controlling 54.1% in RomTelecom.

This July, 70% of CosmoRom was taken over by CosmOTE, the mobile telephony unit of OTE. From the third quarter onwards, CosmoRom''s figures (which had meanwhile turned into Cosmote Romania) have been consolidated in OTE''s.

In the third quarter of this year, RomTelecom registered revenues worth 232.6 million euros, 6.9% higher than during the same period last year. Net income derived during the July-September period reached 109.2 million euros, 198% higher than in the corresponding period of last year.

According to OTE, revenue growth in the third quarter was driven by the positive evolution of interconnections, of leased lines and data services.

During the above-mentioned period, national telephony services yielded the highest revenues, contributing 475.2 million euros, followed by international calls, 109 million euros, while mobile telephony brought 2.9 million euros. Other revenues accounted for 103.6 million euros. The number of employees reported by RomTelecom at the end of the third quarter shrank by 20.1% from the similar period of last year, to 14,720 people.

At the end of September, RomTelecom held assets worth 2.1 billion euros, while its share capital stood at 1.5 billion euros.

The company''s total debts in late September exceeded 647 million euros. Of these, long-term debts amounted to over 434 million euros, credits stood at 109.1 million euros, while current debts exceeded 211 million euros.

"Cosmote Romania is undergoing restructuring, expanding its telephony network and will be re-launched in December," OTE officials explained. According to some market sources, the operator will be re-launched on December 6th.

"The company will focus on network quality, the product line, distribution, and on offering a competitive price to attract a wide range of customers.

The rapid development of the mobile telephony market in Romania, together with the country''s economic expansion, provides special development potential," the representative of the Greek group also said.

During July-September, OTE registered net losses of 541 million euros, while the net losses registered during the first nine months amounted to 331.2 million euros. mihai.musatoiu@zf.ro ; ioana.david@zf.ro

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