Hellenic Telecommunications Organization (OTE) Group on Thursday reported stable income after nine years of decline and strong free cash flows despite higher investments in 2016.
Consolidated revenue totaled 3.908 billion euros in 2016, up 0.1 pct from 2015, after nine successive years of decline, supported by strong performance in Greece. EBITDA was 1.321 billion euros, down 1.6 pct, while adjusted free cash flows totaled 458.6 million euros, down 9.6 pct from 2015. This was attributed mainly to a 10 pct increase in investments on optic fiber and new generation networks and TV content, amounting to 627 million euros.
Adjusted net borrowing of the group was 0.5 billion euros, or 0.4 times the annual adjusted EBITDA, down 37.9 pct compared with 2015.
In Greece, adjusted EBITDA grew 1.0 pct and EBITDA margin rose by 30 basis points. Fixed telephony margin rose to 42.3 pct and mobile telephony margin rose to 33.7 pct. Fixed telephony revenues rose 2.1 pct in 2016, VDSL subscribers totaled 219,000, or 13.4 pct of broadband customer base, while Cosmote TV said its customers totaled 503,000 at the end of the year, up 13 pct from 2015. In mobile telephony, revenue fell 1.8 pct to 306.8 million euros, with 57 pct of customer base using smartphones.
In Romania, fixed telephony revenue grew slightly while revenue in the mobile telephony business grew 4.2 pct to 457.1 million euros. In Albania, revenue fell 6.7 pct in 2016.
Mihalis Tsamaz, chairman and CEO of the Group, commenting on the results said: “With a strong fourth quarter we achieved, for the first time in the last decade, to raise our revenue on an annual basis. It is our strategic decision to significantly increase our investment plan for 2017, creating future networks, covering the needs of households and enterprises in the modern digital era.”