Cosmote Reports Q1

Revenues increased 38.5% over 1Q06 to €687.6M for net income of €74.7M

May 25, 2007

3 Min Read

ATHENS -- COSMOTE MOBILE TELECOMMUNICATIONS S.A., the mobile operator with the widest presence in South East Europe, announces consolidated financial results for the three months ended March 31st, 2007, under IFRS. COSMOTE operates in five countries, namely, Greece, Albania, Bulgaria, FYROM and Romania, through COSMOTE Greece, AMC, GLOBUL, COSMOFON and COSMOTE Romania respectively. Since Q4 2006 COSMOTE is also consolidating GERMANOS.

Growth rates in Albania, Bulgaria, FYROM and Romania continue to be strong, driven, among others, by the integration of GERMANOS' distribution network. At the same time, profitability in these operations is improving significantly.

Greek operations continued their positive revenue growth trend, and given the regulatory and seasonal challenges faced during the quarter and the underlying trends, results have been solid.

Once again, COSMOTE captured high subscriber numbers in all the markets it operates in, with particular emphasis in the post-paid segment in Greece, Bulgaria and Albania. Total subscribers added in all markets in Q1 2007 exceeded 1 million, double compared to Q1 2006. The bulk of net adds was generated in Romania, where COSMOTE is steadily gaining market share. GERMANOS accounted for c. 54% of Group net additions (ex Albania) compared to 38% a year ago, having significantly increased customer subscription in Romania, Bulgaria and FYROM. It is notable that in Greece, GERMANOS accounted for c. 90% of contract net additions as it has maintained its subscriber generation capacity virtually unaltered compared to a year ago. Its role has been critical in doubling net additions achieved in Greece yoy.

Overall, COSMOTE Group’s customer base has exceeded 12.2 million, a 38.3% increase from a year ago and well on target to exceed 15 million in 2009.

Consolidated revenues increased by 38.5%. This was the result of:

  • The Germanos consolidation, which contributed c. 26 % to consolidated revenue growth – excluding the GERMANOS consolidation, Group organic growth has reached 12.5% approximately

  • Strong revenue growth in all international operations

  • Positive growth in Greece, driven by outgoing voice traffic, making up for the interconnection rate cuts.

International operations account for approximately 31% of Group revenues excluding GERMANOS. The success of the international operations in terms of customers, market shares, revenues and profitability as well as the positive underlying trends in the Greek market, despite the normal seasonal and anticipated regulatory drawbacks in Q1, support the Group guidance.

In terms of EBITDA, the 12.7% increase is attributable to:

  • A significant reduction of EBITDA losses in Romania, a trend expected to improve further during the year as revenue growth is accelerating

  • An improvement in the EBITDA margin and absolute figures in Bulgaria, Albania and FYROM

  • A 2.4% EBITDA rise in Greece

Group net income remained effectively flat at 74.7 million Euro, due to increased financial expenses and 15.2% higher depreciation and amortisation charges. Net financial costs reached c 26 million in Q1 07 compared to c. 10 million in Q1 06.

Overall, Q1 indicates that the diversified profile of the Group’s operations and the GERMANOS integration are providing a solid foundation for growth.


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