By Alkman Granitsas
ATHENS (MarketWatch) -- Greek telephone operator Hellenic Telecommunications Organization SA , or OTE said Thursday that second-quarter net profit rose 17% compared with a year earlier as strong mobile sales and cost cutting offset a continuing decline in fixed-line revenue.
For the three months to June 30, the company said net profit was EUR159.3 million compared with EUR136.6 million in the same period a year earlier, while revenue rose 2.5% to EUR1.59 billion from EUR1.55 billion. Operating income, before depreciation and amortization, or Oibda, rose 6.3% to EUR578.8 million.
The figures were exactly in-line with analysts' expectations of EUR159 million in net profit and EUR1.58 billion in revenue.
"OTE achieved another good quarter. In our Greek fixed-line activities, for the third year in a row, we delivered higher first-half Oibda margin as our cost-control efforts gain traction," said Chairman and Chief Executive Panagis Vourloumis in a statement. "Our mobile operations achieved dyanamic growth and market share gains in all countries."
OTE shares closed Wednesday EUR0.46 higher, or up 3.3% at EUR14.22, near the low end of its 52-week trading range. The company trades at a ratio of roughly 9 times forecast 2009 earnings.
Earlier this year, Deutsche Telekom AG /zigman2/quotes/213490072/composite DT -0.69% reached a three-way EUR3.2 billion deal with the Greek government and private equity fund Marfin Investment Group Holdings SA to acquire 25% of OTE and management control of the company.
Company Web Site: www.ote.gr