By Stelios Bouras
ATHENS--Greece's dominant phone company, Hellenic
Telecommunications Organization SA (OTE), reported Thursday a net
loss for the second quarter of the year, hurt by tough
international conditions and one-off costs relating to a
staff-reduction scheme.
The company posted a net loss of EUR3.6 million ($3.9 million),
versus a profit of EUR69.3 million in the same period last year.
Second-quarter revenue reached EUR953.5 million, little changed
from the previous year, it said in a statement.
Adjusting for charges stemming from its voluntary retirement
scheme completed at the end of June, net income was EUR47.2
million, down 34.5% from last year. OTE booked a EUR61.7 million
charge related to the staff-reduction plan.
The company, Greece's one-time state-owned monopoly phone
company but now a unit of Deutsche Telekom AG (DTE.XE), is also
present in Romania and Albania.
In a statement, OTE Chief Executive and Chairman Michael Tsamaz
said a solid performance in Greece led to a very resilient first
half but the situation "was tougher in our international
operations, where competitive pressures are exacerbated.
"Our path toward stabilization in the coming months will be
largely dependent on the evolution of the environment in our home
country. Higher taxes are likely to have an impact on consumer
spending," he said.
Write to Stelios Bouras at stelios.bouras@wsj.com
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