Cosmote to secure 3 million clients by the end of 2007

By June, 2007, Cosmote secured a 11.4 percent market share and some 2.2 million clients, 18 months after it began its operation on the Romanian market, Tsolas said during a joint press conference with Chairman and Managing Director of Greek telecom group OTE, Panagis Vourloumis, in Bucharest. Both Cosmote and Romania’s former state-owned fixed phone operator, Romtelecom, are owned by OTE.

Tsolas said the operator’s network developed at a rapid pace recently and is expected to surpass the coverage of its competitors. By the end of the year, the network should cover 85 percent of Romania’s territory and 97 percent of the population. Cosmote Romania’s distribution network is also expected to increase by up to 850 units and 20,000 POS for pre-paid cards by the end of 2007.

The company’s revenue amounted to €63.6 million in the first half of 2007, up 354 percent year-on-year (€14 million).

Cosmote registered 633,420 new clients in the first three months of the year, and 357,442 in Q2. More than 65 percent of Cosmote’s new clients came from Germanos, the largest telecom distribution network in the region, acquired last year by Cosmote Group.

Earnings before interest, taxes, depreciation and amortization (EBITDA) in H1 2007 were 39.2 percent higher year-on-year (-€18.6 million). Cosmote expects a positive EBITDA in 2008 and net profits in 2009. Net income increased by 53.1 percent in the first half of 2007, or -€20.7 million, compared to the company’s report of -€44.9 million year-on-year.

Cosmote Romania received €84 million of €219 million allocated by Cosmote Group for investments in H1, most of which was used for commercial development of the Romanian company, increasing network capacity and expanding coverage.

Market 
Cosmote’s competitors on the Romanian market are Orange and Vodafone. For H1 2007 Orange Romania reported 8.572 million clients and €578 million in revenues, up 18.8 and 24 percent, respectively year-on-year, while Vodafone Romania reported 8.223 million clients and revenues up 26.8 percent in the same period.