Orange Romania, telecom market leader, posted an increase in the profit rate of up to 34 percent in 2008, compared to a 30 percent margin in 2007, as the company registered a net income of €437.6 million. The main engines of the financial indicators in 2008 were broadband internet or smartphone terminals, including the iPhone.
“One of the strategic projects was the accelerated development of the mobile broadband network, which resulted in a higher rate of adopting mobile internet services among clients,” the Chief Executive Officer of Orange Romania, Thierry Millet, told Business Standard.
Vodafone Romania also raised its profit by 16 percent in 2008, to €306.4 mln, considering a three percent rise in net sales. The company’s profit margin soared to 25.8 percent last year.
“Investments in the mobile data area, the optimization of internal processes and raising the efficiency of the business in general are the elements which allowed us to register these financial indicators,” Vodafone officials said.
UPC Romania, a major player on the TV cable segment, posted an surge in losses to €100.1 mln from €68.9 mln, and company officials had previously said that the firm’s profitability is affected by its significant investments. The company registered a 5.5 percent decline in its client base in 2008.
Romtelecom posted an operating loss worth €36.2 mln in 2008 compared to the €8.1 mln profit in 2007, due to the costs related to the restructuring program and the aggressive offers it launched to raise its client base.
