RomTelecom posts 14.7 million euros in H1 losses

The national telecom operator RomTelecom registered 14.7 million euros in net losses over the first semester of the year, while the company had posted 7.9 million euros in net profit over the year-ago period, reads a press release issued by Greece’s OTE, which holds a 35 percent stake in RomTelecom.

According to OTE, the main reason for the negative results registered by RomTelecom lies in the investments needed to launch Cosmorom mobile telephony operator in the 1800 MHz bandwidth last year. RomTelecom representatives declined further comments on this issue.

RomTelecom operational income stood at 470 million euros over the first six months of the year, up 6.9 percent against the similar period of last year. The company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to 109.6 million euros, down 25.3 percent against the year-ago period.

The level of RomTelecom’s net debts increased by 27.5 percent from 383.7 million euros registered at the end of last year.

GSM operator Cosmorom posted income standing at 6.9 million euros, while net losses amounted to 21.4 million euros. Cosmorom operational profit went down to 23.9 million euros.

The Greek group OTE registered 295.3 million euros in net profit over the first six months of this year, up 6.1 percent against last year. OTE income increased by 12.9 percent, while the EBITDA profit rose by 20 percent, reaching 837.4 million euros.

While RomTelecom is currently undergoing a restructuring process, the Communications and IT Ministry (MCTI) announced that it had finalised the task book to select a consultant with a view to selling up to 65 percent in the company.

According to analysts’ estimates, the consulting company might be selected by next year. On the other hand, several persons involved with the sale of the 35 percent stake in RomTelecom to OTE in 1998 were heard by the General Police Department regarding the nine million-dollar commission granted by the former State Ownership Fund (SOF) to consulting company Goldman-Sachs.