OTE Group reports stable 2020 results

OTE Group on Friday said that consolidated revenues totaled 3.259 billion euros in 2020, 1.3 pct down compared to 2019. On a country-wide basis, total revenues in Greece posted only a slight decrease of 0.1 pct, declining to 2.94 billion euros, despite the negative impact of the COVID-19 crisis on customers, tourism, and the Greek economy.

Solid performance in Broadband and ICT contributed to the resilience of the top line. Fixed Retail Services revenues increased by 0.3 pct, supported by the remarkable take up of fibre-optic services that more than offset pressure on the TV segment, mainly due to COVID-19 lockdowns. Mobile Service revenues in Greece were down 4.3 pct in 2020 due to mobility and travel restrictions imposed as a result of the COVID-19 crisis. In addition, regulatory cuts in mobile termination rates implemented early in 2020 negatively affected mobile service revenues. Revenues from wholesale business in Greece were also up by 1.4 pct, reflecting mainly total market acceleration in fibre-optic adoption.

In Romania mobile, total revenues reached 350.4 million euros in 2020, decreasing by 9.2 pct compared with 2019 as a result of the pandemic crisis.

Total Operating Expenses for the Group, excluding depreciation, amortisation, impairment and charges related to voluntary leave schemes, other restructuring costs and non-recurring litigations amounted to 1.958 billion euros in 2020, posting a decrease of 1.6 pct, compared to 2019. The decrease reflects the disciplined cost management across the Group and the beneficial impact of the implemented voluntary leave schemes. The Group’s Adjusted EBITDA After Lease (AL) amounted to 1.223 billion euros, down just 0.5 pct, nearly offsetting drastic travel and mobility restrictions. In Greece, Adjusted EBITDA After Lease (AL) decreased by 1.0 pct, reaching 1.199 billion euros, and the respective margin stood at 40.8 pct despite the significant hit on roaming revenues due to the absence of tourists.

Romania Mobile posted a significant increase in Adjusted EBITDA After Lease (AL), up 33.9 pct to 24.5 million euros compared to 18.3 million in 2019.

Group expenses for depreciation, amortisation and impairment stood at 833.2 million euros, compared to 804.5 million in 2019. During 2020, an impairment test was performed for TELEKOM ROMANIA MOBILE with respect to its carrying value. As a result of the impairment test, an impairment loss of 160.0 million euros was charged in the 2020 consolidated income statement and is included in “ Depreciation, amortization and impairment” line.

The Group reported Operating profit before financial and investing activities stood at 331.4 million euros, compared to 456.7 million in 2019. Interest and related expenses stood at 56.2 million euros, down 39.4 pct, mainly reflecting the favourable evolution in the average cost of debt. The Group’s income tax expense stood at 45.9 million euros in 2020, decreased compared to 2019 by 50.3 pct, mainly reflecting higher tax effect from deductible investment losses and lower profitability in the year. Profit for the year from continuing operations (attributable to owners of the parent) stood at 263.4 million euros in 2020, compared to 336.3 million recorded in 2019. In 2020, Adjusted Free Cash Flow from continuing operations After Lease (AL) stood at 655.9 million euros, increased by 38.5 pct compared to 2019, reflecting lower income tax and interest paid along with improvements in working capital.

Michalis Tsamaz, the group’s chairman and CEO, commenting on the results said that 2020 was a year of impressive achievements and noted that OTE has the dynamism and flexibility to deal efficiently with future challenges for the benefit of customers, workers, shareholders, the Greek economy and society.