Romtelecom and COSMOTE Romania published during this day the financial results for S1 2014, announcing an increase in total revenues compared to the same period last year. In the same vein, the number of clients increased for both Romanian companies against the background of an increased appetite for mobile terminals and various IT&C projects.
Additional details about the achievements of the two companies can be found in the press release below.
Solid results for Romtelecom and COSMOTE Romania in H1 2014
Romtelecom:
- Total revenues 4% higher in H1 2014 vs. S1 2013;
- +31,6% EBITDA in Q2 2014 vs. Q2 2013;
- Sustained growth of approx. 7% for TV customer base in Q2 2014 vs. Q2 2013;
- Double-digit growth in revenue from systems solutions (IT&C projects).
COSMOTE Romania:
- Data traffic, up 87% in Q2 2014 vs. Q2 2013;
- Postpaid customer base, growing by 0,9 pp in Q2 2014 vs. Q2 2013;
- The business customer base increased by 10,1% in S1 2014 vs. S1 2013;
- 3G modem revenue up 36,4% in Q2 2014 vs. Q2 2013.
Romtelecom and COSMOTE Romania announce the financial results for Q2 2014, ended June 30, 2014, according to the performance indicators reported by OTE Group.
"The financials for the first half of the year are solid. The growth in key segments reflects our efforts to achieve results according to strategy, despite the imposed economic measures, such as the infrastructure tax, which have a direct and significant negative impact on our operations. Also, the impact of this year's decrease in interconnection rates on key performance indicators for the mobile segment is counterbalanced by solid growth in the B2B segment. Our objective to strengthen our leadership position in this segment is supported by a double-digit increase in revenue from system solutions. The TV segment maintained its upward course, both in terms of revenue and customer numbers. The advantageous offers have led to the growth of the postpaid customer base, and the sales of smartphones have registered a meteoric rise. These results represent a solid basis for both companies to strengthen their position in the market", said Nikolai Beckers, Chief Executive
Romtelecom
In the second quarter of this year, Romtelecom maintained its constant evolution, the most relevant growth rates being recorded for the wholesale and business segments. Also, the efforts to narrow the areas that are not specific to the company's main field of activity were positively reflected in Romtelecom's financial results.
EBITDA for Q2 is 31,6% higher compared to the same period last year, reaching 44 million euros. EBITDA related to the first half of this year reached the value of almost 82 million euros, 14,4% higher from one year to the next. Net revenues were 150 million euros for Q2 2014, respectively 306 million euros for the first 6 months of this year, up 4% compared to the same period of the previous year. The EBITDA level for the first half of 2014 was affected by the unexpected introduction of the tax on special constructions, which had a significant impact on the group of companies, due to the fact that Romtelecom has a historical infrastructure based on copper and sewers.
Attractive TV content and offers were appreciated by customers, whose number increased by 6,8% in Q2 2014 year-on-year to 1,384 million. The number of Internet customers was 1,244 million at the end of the second quarter of 2014, up 1,5% compared to the same period last year. The decrease in the number of fixed voice subscribers was limited to -4,1%, to 2,191 million.
The company continued to focus on providing bundled services, which led to an increase in the penetration rate of Internet services from the voice service base of almost 57%, and that of television services from the voice service base voice recorded a penetration of 63,2%. The number of subscriptions was 4,82 million for Q2 2014, which was stable compared to the same period last year.
Revenues generated by television services, respectively Internet, were 4% higher in Q2 2014 vs. Q2 2013. Other relevant growth rates were recorded for system solutions (IT&C projects) (+52%), wholesale for services related to fixed operations (+10,8%) and from other activities that are not specific to the main field of activity of the company, such as real estate.
COSMOTE Romania
In Q2 2014, COSMOTE Romania continued its stable course, consolidating its position on the market and recording increases in terms of the most important indicators. Thanks to the complete portfolio that addresses the B2B segment, Q1 2014 was another productive period for the company's business customer base, which saw a 10,1% increase compared to H1 2013. Also, in Q2 2014 versus Q2 2013, revenues from 3G modems increased by 36,4%.
At the end of June 2014, the total customer base (including Zapp) remained at 6 million and the postpaid customer base reached 26,2%, up 0,9 pp in Q2 2014 compared to the same period of the year previously, mainly due to the complete portfolios of products and services dedicated to residential customers. The subscriber base was positively influenced by the company's strategy to intensively promote smartphone terminals alongside the COSMOTE Free L tariff plan, which offers all customers affordable prices for this type of phones.
Total revenues in S1 2014 remained stable compared to S1 2013, reaching the value of 219,8 million euros. Pro Forma EBITDA (operating earnings before interest, taxes, depreciation and amortization) decreased by 3,3% to EUR 52,6m in H1 2014 versus H1 2013, partly affected by lower interconnection rates. The Pro Forma EBITDA margin decreased by 0,9 pp in S1 2014 compared to the same period of 2013, being 23,9%.
Compared to S1 2013, in S1 2014, ARPU (average revenue per user) decreased by 0,15 euros as a result of the decrease in ARPU value for received calls.
In Q2 2014 versus Q2 2013, data traffic saw a spectacular 87% increase, while the number of mobile data users remained stable. Also, smartphone sales maintained their steady growth in Q2 2014, registering a significant increase of 100% compared to the same period in 2013. In the first six months of this year, COSMOTE Romania's 3G customer base has increased by 42%, compared to S1 2013. These positive results are related to the company's strategy of developing 3G, 3G+ and 4G networks, the company's permanent commitment to its customers.
COSMOTE Romania offers 4G coverage for 90% of the capital's population, along with Otopeni, Bragadiru, Jilava, Valea Prahovai (the Sinaia, Bușteni, Predeal resorts) and 13 county residences: Ploiești, Cluj, Iași, Bacău, Suceava, Botoșani, Piatra Neamț , Constanta, Brăila, Galati, Buzău, Satu Mare, Baia Mare. At the same time, the company offers a high-quality 3G data network with download speeds of up to 43,2 Mbps in 267 cities and over 4.800 localities in Romania, covering approximately 72% of the population. Additionally, customers can enjoy speeds of up to 21,6 Mbps in HSPA+ in 307 cities across the country. In total, 3G services cover approximately 80% of Romania's population.
At the end of Q2 2014, OTE Group provided telecommunications services to approximately 15,5 million customers in Southeast Europe.
