Revenues of "Cosmote" stagnated last year

"Cosmote" Romania saw a 27% increase on the business segment last year, compared to 2010, including large customers such as BCR or Transgaz, the company's officials announced yesterday.

At the end of 2011, the company's total number of customers, including those of "Zapp", was approximately 6.5 million, as the subscribers' ratio reached 23.1% of the customer base, as a result of the growth of the business segment. The company's market share has remained steady at approximately 24%, and revenues also remained stable compared to 2010, at 468.2 million Euros. The EBITDA margin (earnings before interest, taxes, depreciation and amortization) increased 5.7%, way to 21.4%, in 2011, compared to 2010, reflecting the significant operational improvements. The EBITDA increased to 100.1 million Euros, an increase of 35.8% compared to the entire year 2010.

Following the successful integration of "Zapp", 3G services are available to 66% of the population, the company says. Thus, the company's 3G customer base significantly increased, by 116%.

The ARPU (average revenue per user) increased 10%, in 2011, compared to 2010.

At the end of last year, after 15 years of operation on the Romanian market, "Germanos" - the national distribution network of "Cosmote" Romania - comprised approximately 600 stores all over the country.

On December 31st, 2011, the mobile divisions of OTE Group provided telecommunications services to approximately 20.5 million customers, in South-Eastern Europe.

• Revenues of "Romtelecom" fell 8% in 2011

Revenues of "Romtelecom" decreased 8% in 2011, compared to 2010, even though the drop recorded in the last quarter of 2011 compared to the similar period of 2010 is significantly smaller (4,4%). Over the same period, the EBITDA, excluding the costs of staff cuts, was 2% higher compared to the similar period of 2010, generating a 1.3% improvement of the EBITDA ratio.

In 2011, operating expenses also had a good evolution, reflecting the company's efforts to cut costs and to increase efficiency, as overall operating expenses fell 6%. Excluding the restructuring and transformation effects, operating expenses fell 7%.

The main areas which saw cuts are employee expenses, arrears and other services.

"In an economic context which remained difficult and uncertain in 2011, < Romtelecom > succeeded in being successful in several strategic initiatives, such as the launch of new plans for residential customers in the second part of the year, which exceeded our expectations", said Stefanos Theocharopoulos, general manager of "Romtelecom": "In 2012 we will continue to focus on offering packages instead of separate services, this being most likely the greatest change in the trade strategy of < Romtelecom > in the last few years. By complementing the TV, internet and voice offer of Romtelecom with products launched in cooperation with < Cosmote >, customers will be able to buy internet and mobile telephony in a single package which has the best market coverage.

When it comes to the company's strategy, aside from packages, we will continue to focus our attention on the TV services area, which are essential for the Romanian market. Given the fact that Romanians are heavy consumers of TV, starting from this increased interest, < Romtelecom > is building an expanded offer which also comprises a strong entertainment component, with TV services being available via satellite, cable, IPTV (ed. note: Internet television) and in over-the-top format".

On the business segment, last year the company maintained its position of leader on the fixed telephony, internet and VPN (virtual private networks), the official of "Romtelecom" said.

The growth rate for new subscribers to the "Romtelecom Business Solutions" fixed internet service was higher than the market average, and the service packages also continued to gain market share, according to the quoted source.

The rising number of customers who opt for "Romtelecom" packages is also reflected by the increase in the number of internet and TV services users, which both exceeded 1.1 million at the end of 2011, partially compensating for the decline of landline telephony.

At the moment, over 40% of the customers of "Romtelecom" are using at least two of the company's services.

Among other things, in order to increase efficiency, "Romtelecom" has reduced its number of employees by about 1,700. This year, the company will focus more on improving end-to-end processes.