By Nektaria Stamouli
ATHENS--Greece's former monopoly phone company, Hellenic
Telecommunications Organization SA (HTO.AT), or OTE, Wednesday
reported a 45.6% drop in net first-quarter profit, due to the
country's tough economic conditions and aggressive competition.
MAIN FACTS:
-First-quarter net profit: EUR167.5 million (2012: profit
EUR308.1 million)
-First-quarter revenue: EUR1.04 billion (2012: EUR1.18
billion)
-Earnings before interest, taxes, depreciation and amortization,
or Ebitda: EUR368 million (2012: EUR419.4 million)
-First-quarter earnings per share: EUR0.34 (2012: EPS
EUR0.63)
-The company announced in late April the sale of its Bulgarian
unit Globul to the Norwegian telecom firm Telenor ASA for EUR717
million. This transaction will cut down net debt by more than half,
or to EUR2.3 billion, from its level at the beginning of 2011.
-Chairman and Chief Executive Officer Michael Tsamaz: "Thanks to
the cost-cutting measures of the past years, and in particular our
headcount reduction in Greek fixed-line through effective voluntary
exit schemes, we have preserved our profitability in the
quarter.... We confronted these circumstances with determination,
defending our positions with all the means at our disposal. Product
innovation and marketing savvy enabled us to contain revenue loss,
and we estimate that we are continuing to outperform our
markets."
-Outlook: "In the coming quarters we do not expect a material
improvement in our operating conditions, but will continue to make
the decisions required to strengthen our market positioning,
improve our financial structure and maintain our
profitability."
Write to Nektaria Stamouli at nektaria.stamouli@dowjones.com
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