The challenging economic situation continues to impact OTE Group activities across all countries in which it operates

February 25, 2010

1 Min Read

ATHENS -- Hellenic Telecommunications Organization SA(ASE: HTO, NYSE: OTE), the Greek full-service telecommunications provider, today announcedaudited consolidated results (prepared under IFRS) for the quarter and twelve months endedDecember 31, 2009:

Commenting on the quarter and the year, Panagis Vourloumis, Chairman & CEO, noted:“The challenging operating conditions we faced since the beginning of 2009 in all our activitiesintensified in the fourth quarter as consumers responded to the worsening economic outlook across the region. In addition, the overall Greek mobile market shrank durably during the year as a resultof pricing assaults by our competition, a trend that is continuing in 2010. Against this background,all our units responded valiantly, preserving or even reinforcing their market positions wheneverpossible, and maintaining Group profitability roughly in line with the prior year’s levels despite thesharp drop in their top lines. We are continuing to work hard on cutting our cost base in the current year.”

Mr. Vourloumis added: “In view of the growing uncertainty in our markets, we have decidedto reduce our dividend for 2009, so as to keep intact our ability to invest in the long-term future ofall our businesses.”


The challenging economic situation continues to impact OTE Group activities across all countries inwhich it operates. However, the Group managed to contain the revenue decline to 7.0% in Q4’09 [to€1,525 million]. Comparable revenues, i.e. excluding Q4’08 revenues of Cosmofon, which was deconsolidated inQ2’09, decreased by 6.0%. Management believes that most of the Group’s operating units,particularly in mobile telephony services, significantly outperformed their respective markets.

Total Operating ExpensesTotal Operating Expenses excluding depreciation & amortization were down 7.1% in Q4’09,amounting to €1,024.5mn. The decrease is mainly attributable to lower cost of telecommunicationsequipment and lower charges from domestic telephony operators due to cuts in mobile terminationrates.


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