Romanian Romtelecom’s 2Q Revenues Down 11.1%, To EUR178.7M

Romanian hard-line telephony operator Romtelecom, owned by Greece’s OTE, reported operating revenue down 11.1% on the year in the second quarter, to EUR178.7 million, while its EBITDA dropped 59.7%, to EUR24.4 million on difficult economic conditions, OTE said in a statement Thursday.

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The company had additional revenues of EUR10 million from other sources than telecom operations, such as rents an penalties, so the overall drop in revenue stood at about 9% in the second quarter, company officials told MEDIAFAX.

In the second quarter of 2009, Romtelecom had operating revenues of EUR201.1 million and its EBITDA (earnings before interest, tax, depreciation and amortization) stood at EUR60.6 million.

Greek group OTE, 30% owned by Deutsche Telekom, has changed its reporting standards in line with those of the German operator.

Despite economic difficulties, the number of client subscriptions to Romtelecom's services increased to 4.5 million and growth for broadband internet and TV services helped break the fall registered for hard-line telephony services, said general manager Yorgos Ioannidis.

The company's profit margin dropped to 13.7% in the second quarter from 30.1% in the same period last year.

Romtelecom spent EUR16.6 million to pay severance packages to 645 employees who left the company in the second quarter, under a voluntary layoff program.

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