OTE Group on Wednesday reported higher operating earnings – thanks to a strong performance in Greece – positive cash flows and increasing sales of fast internet through fiber optics in the first quarter of 2018.
In an announcement, OTE Group said consolidated turnover was 921.3 million euros in the January-March period this year, down 0.8 pct compared with the same period in 2017. Adjusted EBITDA rose 3.6 pct to 315.1 million euros (in Greece, adjusted EBITDA rose 5.3 pct and adjusted EBITDA margin grew to 40.9 pct). Adjusted EBITDA in Romania fell 10.8 pct while in Albania rose 112.5 pct.
The Group’s adjusted earnings rose 32.5 pct to 50.6 million euros in the first quarter from 38.2 million euros in the corresponding period last year. Adjusted investments totaled 166.6 million euros, while cash flows were a positive 8.6 million euros in the quarter. Adjusted net borrowing was 700 million euros, or 0.6 times the annual adjusted EBITDA.
In Greece, OTE reported 51,000 new subscribers in broadband high-speed fiber optics services in the first quarter of 2018, raising its customer base to 405,000. Cosmote TV also reported the increase of its subscription base by 3,000, totaling 528,000 at the end of March. In the mobile telephony business, 1.6 million users adopted the Cosmote mobile application in the first quarter, up 75 pct compared with 2017.
In Romania, group revenue fell 1.7 pct to 226.5 million euros, while in Albania revenue was up 0.7 pct.
Commenting on the results, Mihalis Tsamaz, chairman and CEO of the Group, said: “OTE Group began 2018 with strong performances. Our revenue from retail services in Greece grew thanks to higher sales of fast internet through fiber optics. We continue upgrading our network to offer to more customers speeds up to 200Mbps. We emphasize on digitalization, upgrading customer experience and achieving cost reductions. All these factors have a positive impact on EBITDA. We are optimistic for the remaining of the year. Our cash flows are capable to help us achieve our goals and to support dividend payment for the year”.