RomTelecom back in the black

Communications operator RomTelecom has become profitable again, although revenues have actually dropped. The results would have been better still, had it not been for the constant decline of the mobile telephony division Cosmorom. RomTelecom made 45.6 million-euro net income last year, compared with the 65.9 million-euro losses in 2002, which accounts for a 169% growth, its majority shareholder, Greek OTE Group announced. The main reason why RomTelecom returned to profitability is the drop in payroll expenses, as a result of the headcount-reduction efforts last year, when 6,700 people were laid off. OTE requested RomTelecom to bring its productivity up to the European standards of the sector. On the other hand, operating revenues were down 16.8% to 797 million euros in 2003, from the 958.7 million euros in 2002. The drop is primarily due to “lower tariffs in real terms”; despite regulatory approval for the conversion of tariffs into euros effective last October. RomTelecom has been battling the communications regulating authority (ANRC) for quite a while, as the latter has repeatedly denied the company’s requests for higher tariffs. ZF