Comments on the financial results of Romtelecom, Q2 2012

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To quote: Anastasios Tzoulas, Chief Financial Officer Romtelecom

 

The results of Q2 2012 show that we managed well the top line (revenues) and the decline of fixed voice. Romtelecom had better results in terms of revenues, with 2 digit increases recorded for broadband and TV services, but also increases for systems solutions, in line with the company’s strategy to increase its revenues from other lines of services than fixed voice. This trend of increasing revenues from broadband, TV and ICT solutions is a good sign even if the overall revenues slightly decreased by around 1.5% compared to the first quarter of 2012, due mainly to the voice services, but also to a wholesale revenues decline after the National Regulatory Authority’s decision to implement reduced termination rates.

 

Revenues evolution this second quarter of 2012, in parallel with accelerated reduction in operating expenses, as well as a lower depreciation & amortization, translated into positive operational profit performance in the quarter, with pro forma EBITDA excluding redundancy costs up 11% compared to Q2 2011.

 

The company managed to better protect its customers’ base, as now 1 of 2 Romtelecom customers is using at least two services from the company. Compared to Q2 2011, broadband customers rose organically by approximately 8%. The number of TV customers recorded a minor decrease year on year, after the portfolio redesign for the TV services, but in parallel the evolution of revenues was positive, as customers migrated to higher value added TV subscriptions. With regard to the business segment, Romtelecom continues to be the market leader on the fixed voice, fixed internet and VPN segments.

 

Focus of the commercial strategy will remain on bundles for the next period, giving the customer the power to personalize the services he gets based on his real needs. The TV service will continue to be the core service in this strategy.