Aug. 28, 2008, 4:28 a.m. EDT

Hellenic Telecom profit up 17% on mobile growth, cost cuts

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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

-Contact: 201-938-5400

/zigman2/quotes/213490072/composite
US : U.S.: NYSE
$ 50.55
-0.35 -0.69%
Volume: 2.19M
Jan. 19, 2022 4:00p
P/E Ratio
177.31
Dividend Yield
N/A
Market Cap
$14.51 billion
Rev. per Employee
$293,454
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