Greek telecom OTE reports six-month profit drop

8th August 2013, Comments 0 comments

The biggest Greek telecoms operator OTE, controlled by Germany's Deutsche Telekom, reported on Thursday a six-month profit drop of about 43 percent to 223.9 million euros ($76 million).

Turnover also fell by 10.1 percent to 1.97 billion while earnings before interest, taxes, depreciation and amortisation (Ebitda) dropped by the same percentage to 688.4 million euros.

The company blamed the result on falling connection costs and strong competition in network and mobile telephony services.

In the second quarter of the year, the group recorded a 39.5-percent net profit drop to 57.2 million euros ($76 million).

OTE is the biggest telecom operator in the Balkans and employs more than 20,000 people in Greece, Albania and Romania.

It sold its Bulgarian subsidiary Globul to Norway's Telenor group for 717 million euros in July.

Formerly state-owned, OTE was among the first companies put on sale in 2010 by the crisis-hit Greek government under a privatisation drive pledged in return for bailout loans from the European Union.

© 2013 AFP

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