Romtelecom posts 10% loss of EBITDA due to exchange rate

Both Romtelecom and Cosmote Romania are controlled by Greek group OTE. Romtelecom has a 30 percent share in Cosmote Romania.

Romtelecom’s EBITDA amounted to €300.3 mln, while its income from services was €871.1 mln.

The company’s operating costs rose 2.7 percent year-on-year, to €571 mln, of which €14 million were lost due to the exchange rate. Romtelecom pays its employees in lei, while bills for services are in euro. Some 36 percent of the company’s operating expenses are salary costs.

Furthermore, of the €292.2 mln amortization, exchange rate variations amounted to €16 mln.

The company lost some 400,000 subscribers for phone services, while securing some 650,000 new clients for internet and TV satellite services.

“We plan to continue last year’s growth in the internet and TV satellite segments, and even increase the number of phone service subscribers,” Romtelecom’s CEO, Yorgos Ioannidis, said. “For this purpose, our strategy rules out nothing, even an acquisition, if necessary, and the group’s management approves this.” He added that Romtelecom has discussed with potential communications and IT targets, but “each time the price suddenly rises five-fold.”