COSMOTE Romania continued to make headway in Q2 2013

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COSMOTE Romania announces key performance indicators for Q2 of 2013 fiscal year, ended June 30th, 2013, as reported today by OTE Group.

Despite unfavourable economic backdrop and constant regulatory setbacks, in Q2 2013, COSMOTE Romania managed to defend its market position, posting growth in key performance indicators. Moreover, COSMOTE Romania continued to grow its business customer base, capitalizing on targeted offers and synergies with Romtelecom. Therefore, in Q2 2013, the business segment grew by 17.1% versus Q2 2012. Important brands, among which Axis Security and Rio Bucovina, joined the company’s portfolio of business partners.

COSMOTE’s total customer base in Romania remained stable at the end of June 2013, at 6 million, out of which 25.3% postpaid. In Q2 2013, the company increased its 3G customer base by 27.5%, compared to Q2 2012.

EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) rose by 3.4% in Q2 2013 compared to the same quarter last year, reflecting enhanced customer propositions and operating efficiency. EBITDA margin reached 27.0% in Q2 2013, up by 1.4 p.p. vs. Q2 2012.

Service revenues declined by 2.2% compared to Q2 2012, exclusively due to the termination rate cut implemented in September 2012. Compared to the previous quarter (Q1 2013), service revenues grew by 5% in Q2 2013. Total revenues in the second quarter of 2013 were 111.4 million Euro, an increase of 3% versus Q1 2013.

Blended ARPU decreased by 1.7% in H1’13 compared to H1’12, due to lower incoming ARPU adversely affected by mobile interconnection rate cuts.

“This second quarter of 2013 was defined by ongoing fierce competition and regulatory thresholds with direct impact over the business. Despite these challenges, on a quarterly basis, COSMOTE Romania continued to make headway and demonstrated its sustainable development strategy. We continue with our key investments program to create value for all our stakeholders. Also, we are putting all our efforts to increase our efficiency and flexibility to the immediate benefit of our customers”, said Konstantinos Apostolou, COSMOTE Romania’s Chief Financial Officer.

At end of June 2013, COSMOTE Romania was offering the best 3G network with mobile broadband download speeds of up to 43.2 Mbps in 176 cities and over 1820 localities across Romania, covering 55.67% of the population. Moreover, customers could enjoy speeds of up to 21.6 Mbps in HSPA+ technology in 200 cities across the country. Overall, 3G services cover more than 75% of the Romanian population.

COSMOTE Romania constantly invests in consolidating and improving its national sales distribution channel, which included, at the end of June 2013, approximately 530 points of sale across the country.

The company will continue to strengthen its position in the broadband and business segments. Network expansion and development, as well as products and services portfolio enhancement will remain key priorities for the company.

In Q2 2013, the mobile operations of OTE Group provided telecommunications services to approximately 15,6 million customers (excluding Globul) in SE Europe.