Cyta announces sale of Greek subsidiary

The government cabinet of Cyprus, set in motion a tender process to sell 100% of shares of «Cyta Hellas», subsidiary of the Cyprus Telecommunications Authority (Cyta), to the highest bidder.

This process will be carried out separately and independently from any other process for the privatization of other assets of the Cyprus Telecommunications Authority. Additionally, for the procedure to be followed, it is likely that Cypriot authorities will recruit new consultants from privatization since the original plans for the privatization of Cyta did not include a separate sale of the subsidiary in Greece.

According to the newspaper “Kathimerini” Cyprus, although the company’s financial results for 2015 recorded an increase in revenue, gross profit and EBITDA, the year failed to become profitable. Total income amounted to 107.8 million euros, an increase of 19.16% compared to the previous year.

Accordingly, gross profit recorded an increase of 45.33% to 42.8 million euros, while operating profit (EBITDA) was positive to 14.6 million euros. However, the Greek subsidiary recorded a loss before tax of around 2.97 million. Compared with 2014, losses recorded a fall of 80.4%. On the positive aspects of last year, broadband customer base grew to 325,000 active customers.

The subsidiary Cyta Hellas SA was founded in 2007 and its share capital on 31.12.2015 was 145.9 million euros. Since August 2014 it began to provide mobile telephony services in Greece as a virtual provider. It employs 766 staff, of whom 686 are full-time. According to the company’s management, the aim in 2015 was to reduce staff by 10% and payroll by 5%, an aim which was not achieved, since costs despite the reduction in the number of employees remained at the same level as in 2014 (16.1 million euros in 2015 compared to 16.5 million in 2014).