Romtelecom: 1.4m-euro net profit in Q2

Romtelecom, the largest fixed telephone operator in Romania, posted net profit worth 1.4 million euros in the second quarter of this year compared with losses worth 4.2 million euros in the second quarter of 2006. Revenues amounted to 217.3 million euros, against 217.1 million euros derived during the same period last year. The operator’s half-year net profit stood at 21.2 million euros, up 45.2% against the January-June period of 2006, while its revenues stagnated at 439.4 million euros. The operating income stood at 25.8 million euros, down 20.6% against the first half of 2006. In the second quarter of this year, the operator lost 135,000 clients compared with 181,000 in the first quarter. This is the second quarter in a row to register a decrease in the number of clients who have abandoned the operator. The company lost 234,000 clients in Q4 of 2006, 181,000 in Q1 of 2007 and 135,000 in Q2 of 2007. In the first half of the year, Romtelecom lost 316,000 fixed telephone clients compared with 187,000 clients in the first half of last year. Between January 2006 and June 2007, around 870,000 clients abandoned Romtelecom’s fixed phone line service. Subscriptions for fixed phone lines are Romtelecom’s main source of income. According to the Greek group OTE – the operator’s majority shareholder – Romtelecom increased its profit and maintained constant revenues in H1 (despite the decline in the number of clients), as a result of the “rise in new sources of revenues, such as the Internet, satellite television and data services for companies (…) as well as to the over 50% cut in losses seen by Cosmote Romania.”