UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 under the
Securities Exchange Act of 1934
For the month of November 2011
Hellenic Telecommunications Organization S.A.
(Translation of registrant's name into English)
99 Kifissias Avenue
GR 15181 Amaroussion
Athens, Greece
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F o
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes o No x
HELLENIC TELECOMMUNICATIONS ORGANIZATION S.A.
OTE GROUP REPORTS 2011 THIRD QUARTER RESULTS
UNDER IFRS
·
Slowdown in Group revenue decline
·
Operating cost reduction across all Group operations
·
Agreement for payroll cost reduction in Greek fixed-line
·
EBITDA margin upheld
·
Strong Operating Cash flow
ATHENS,Greece - November 10, 2011 – Hellenic Telecommunications Organization SA (ASE: HTO, OTC MARKET: HLTOY), the Greek full-service telecommunications provider, today announced unaudited consolidated results (prepared under IFRS) for the quarter and nine months ended September 30, 2011:
(€ mn) | Q3 '11 | Q3 '10 | % Change | 9M '11 | 9M '10 | % Change |
Revenues | 1,312.5 | 1,392.7 | -5.8% | 3,792.2 | 4,152.4 | -8.7% |
Other income/ (expense), net | 0.6 | 3.8 | -84.2% | 6.4 | 34.7 | -81.6% |
EBITDA* | 464.3 | 495.0 | -6.2% | 1,254.5 | 1,436.9 | -12.7% |
as % of Revenues | 35.4% | 35.5% | -0.1pp | 33.1% | 34.6% | -1.5pp |
Pro forma** EBITDA | 468.4 | 498.4 | -6.0% | 1,308.3 | 1,473.1 | -11.2% |
as % of Revenues | 35.7% | 35.8% | -0.1pp | 34.5% | 35.5% | -1pp |
Operating Income (EBIT) | 207.0 | 228.9 | -9.6% | 468.6 | 609.1 | -23.1% |
Net Income/(loss) | 104.4 | 126.3 | -17.3% | 196.8 | 131.3 | +49.9% |
Basic EPS (€) | 0.2130 | 0.2577 | -17.3% | 0.4015 | 0.2679 | +49.9% |
CAPEX | 171.0 | 169.3 | +1.0% | 473.9 | 567.3 | -16.5% |
Cash flows from operations | 318.6 | 300.2 | +6.1% | 809.0 | 678.2 | +19.3% |
* See Exhibit VIII
** Excluding impact of Voluntary Retirement Programs and Restructuring Plans
Commenting on OTE’s performance in the third quarter, Michael Tsamaz, Chairman & CEO, stated: “In markets obviously impacted by the magnitude of the economic challenges, the OTE Group turned in a rather resilient set of results this quarter. In Greece, where the pace of net disconnections across the fixed-line market accelerated, line losses at OTE were aligned with prior quarters, and the revenue drop in mobile showed a marked improvement as competitive conditions further stabilized. Outside of Greece, international mobile operations sharply narrowed their revenue decline thanks to positive performances in both Romania and Bulgaria.”
Mr. Tsamaz further noted: “These tough markets have an effect on our results, but do not weaken our determination to transform OTE into a high performance organization. By focusing on improving services, products and the overall customer experience, we aim at increasing the total value offered to our customers. Unified portals and call centers, redesigned shops and simplified customer statements are some of the achievements now in place. We are scrutinizing our cost base to maximize efficiency, and expect to benefit from the labor agreement signed in Greek fixed-line operations during the quarter. We are committed to intensifying these efforts in all areas under our control to curtail the impact of the crisis on our performance.”
FINANCIAL HIGHLIGHTS
BREAKDOWN OF GROUP REVENUES
(€ mn) | Q3 '11 | Q3 '10 | % Change | 9M '11 | 9M '10 | % Change |
Fixed Line Operations, Greece | 483.5 | 539.3 | -10.3% | 1,434.9 | 1,648.1 | -12.9% |
Fixed Line Operations, Romania | 160.1 | 181.5 | -11.8% | 492.5 | 546.8 | -9.9% |
Mobile Operations, Greece | 445.4 | 466.1 | -4.4% | 1,230.7 | 1,370.9 | -10.2% |
Mobile Operations, International | 252.9 | 257.2 | -1.7% | 715.8 | 749.5 | -4.5% |
Other | 127.2 | 114.8 | +10.8% | 363.2 | 336.7 | +7.9% |
Intragroup Eliminations | (156.6) | (166.2) | -5.8% | (444.9) | (499.6) | -10.9% |
TOTAL | 1,312.5 | 1,392.7 | -5.8% | 3,792.2 | 4,152.4 | -8.7% |
Other income/(expense), net | 0.6 | 3.8 | -84.2% | 6.4 | 34.7 | -81.6% |
The OTE Group experienced a revenue drop of 5.8% in Q3’11, continuing the improving trend started in the previous quarter. The sharp slowdown in revenue decline this quarter reflects the gradual stabilization of market conditions in Greek mobile operations as well as slightly improving trends in the Greek fixed-line business, despite the unfavorable economic and consumer spending conditions along with an adverse regulatory and competitive situation.Outside of Greece, both the Romanian and Bulgarian mobile operations returned to year-over-year revenue growth.
Total Operating Expenses, excluding depreciation, amortization and charges related to voluntary retirement programs, amounted to €844.7mn in Q3’11, a drop of 5.9% compared to €898.1mn in Q3’10. The decrease reflects lower costs of telecommunications equipment, lower charges from domestic telephony operators, lower payroll and employee benefitsas well as considerable cost-containment efforts across all operations.Since the beginning of the year, headcount has been reduced by 183 in Greek fixed-line, 1,758 at RomTelecom and 466 in mobile operations in Greece and internationally. Additional departures related to programs currently underway will take place in Greek and Romanian fixed-line operations in the final months of the year. Other operating expenses were down only 1%, largely reflecting special real estate tax levies.
Reflecting tight cost-control, pro forma EBITDA margin was roughly unchanged from the Q3’10 level, following two quarters of significant margin erosion.
In the quarter, a charge of €3.7mn was included under voluntary retirement costs reflecting receipt by OTE of definitive notification from the Ministry of Labor concerning the actuarial studies related to the company’s 2009 early retirement program. This charge extinguishes all claims relative to this program.
The Group posted net income of €104.4mn for the quarter compared to net income of €126.3mn in Q3’10, largely reflecting the decline in operating income.
Capital expenditures increased by 1.0% in Q3’11 compared to Q3’10, to €171.0mn.Total CAPEX as a percentage of Group revenues in Q3’11 was 13.0%, as compared to 12.2% in Q3’10.Capital expenditures in Greek fixed-line, Romanian fixed-line, and mobile operations amounted to €40.8mn, €19.0mn and €107.4mn, respectively. Q3’11 CAPEX includes a €15.1mn outlay for the acquisition of a 3G license in Albania; excluding this item, Group CAPEX as a percentage of revenues declined to 11.9% in the quarter.
In Q3’11, OTE paid to its shareholders the 2010 dividend approved by its General Assembly in June 23, 2011; total dividend payment amounted to €52.9mn.
During the quarter, the Group generated €318.6mn from operating cash flows compared to €300.2mn for the comparable 2010 quarter, despite lower EBITDA. In Q3’11, the group significantly improved its working capital compared to Q3’10, mainly due to a reduction in account receivables.
OTE Group debt outstanding breaks down as follows:
(€ mn) | Sep 30, 2011 | Jun 30, 2011 | % Change | Dec 31, 2010 | % Change |
Short-Term: |
|
|
|
|
|
-Bank loans | 2.0 | 4.1 | -51.2% | 5.6 | -64.3% |
Medium & Long-term: |
|
|
|
|
|
-Bonds | 3,519.3 | 3,587.7 | -1.9% | 4,781.1 | -26.4% |
-Bank loans | 1,666.6 | 1,415.7 | +17.7% | 513.1 | +224.8% |
Total Indebtedness | 5,187.9 | 5,007.5 | +3.6% | 5,299.8 | -2.1% |
Cash and Cash equiv. | 1,072.0 | 867.4 | +23.6% | 1,004.3 | +6.7% |
Net Debt | 4,115.9 | 4,140.1 | -0.6% | 4,295.5 | -4.2% |
Other financial assets | 99.2 | 19.3 | - | 12.5 | - |
Underlying Net Debt | 4,016.7 | 4,120.8 | -2.5% | 4,283.0 | -6.2% |
1. FIXED LINE OPERATIONS, GREECE
ACCESS LINES & TRAFFIC STATISTICS
| Sep 30, 2011 | Sep 30, 2010 | % Change |
PSTN connections | 3,102,912 | 3,484,309 | -10.9% |
ISDN connections (BRA & PRA) | 444,641 | 491,184 | -9.5% |
Total PSTN & ISDN connections | 3,547,553 | 3,975,493 | -10.8% |
Of which Wholesale line rental connections | 91,384 | 60,744 | +50.4% |
ADSL active subscribers | 1,142,011 | 1,134,287 | +0.7% |
IPTV Subscribers | 55,577 | 40,487 | +37.3% |
Unbundled local loops (active) | 1,575,721 | 1,281,378 | +23.0% |
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|
(min, mn) | Q3 '11 | Q3 '10 | % Change |
Local | 1,708.8 | 1,916.8 | -10.8% |
National Long-distance | 367.0 | 424.7 | -13.6% |
International Long-distance | 59.6 | 61.9 | -3.7% |
Fixed-to-Mobile | 313.2 | 345.0 | -9.2% |
Special Calls | 25.2 | 30.2 | -16.7% |
Total Voice traffic | 2,473.8 | 2,778.6 | -11.0% |
Note: Starting Q1 2011, to harmonize access line data with those utilized by the Greek regulatory authorities, OTE reports data based on the total number of ISDN connections rather than on channel equivalents. The corresponding total is provided above under “Total connections”.
In Q3’11, OTE fixed-line operations in Greece recorded the loss of nearly 103,000 PSTN and ISDN connections, a slight improvement compared to the trend in prior quarters, as residential and business customers continue to look to reduce all non-essential expenses. However, roughly half of OTE’s line loss in the quarter is due to net disconnections, a sharply higher percentage than in prior periods, reflecting slower growth at alternative carriers.
At the end of September 2011, the total Greek ADSL market amounted to approximately 2.7 million subscribers, as compared to 2.4 million at the end of Q3’10. During the quarter, total market net additions reached 42,000, reflecting the continued impact of macroeconomic developments on market growth.Once again held back by its inability to compete effectively on pricing, OTE lost approximately 9,300 ADSL subscribers during the quarter.
During the quarter, OTE carried out a number of initiatives aimed at streamlining and improving its interaction with customers. It has begun a systematic program of refurbishment of all the stores that it intends to retain – by the end of the year, 35 retail outlets out of a network of 135 units should have been adapted to the new format, with the balance expected to be renovated in 2012. Since November 1, access to all OTE call centers is provided through a single nationwide number, a change that has resulted in a nearly 50% decline in repeat calls in the first days following implementation. Similarly, a single portal, ote.gr, has replaced a number of overlapping websites, and the layout of OTE’s monthly statement has been simplified. All of these measures, carefully prepared and tested over the past year, are aimed at bettering customer experience and raising OTE’s image with consumers.
SUMMARY FINANCIAL DATA
(€ mn) | Q3 '11 | Q3 '10 | % Change | 9M '11 | 9M '10 | % Change |
Revenues | 483.5 | 539.3 | -10.3% | 1,434.9 | 1,648.1 | -12.9% |
- Basic Monthly Rentals | 107.0 | 122.8 | -12.9% | 332.1 | 381.8 | -13.0% |
- Fixed-to-fixed calls | 74.3 | 87.7 | -15.3% | 228.3 | 272.0 | -16.1% |
- Fixed-to-mobile calls | 24.0 | 30.7 | -21.8% | 67.8 | 91.7 | -26.1% |
- International | 32.4 | 37.5 | -13.6% | 83.9 | 114.7 | -26.9% |
- Other | 245.8 | 260.6 | -5.7% | 722.8 | 787.9 | -8.3% |
Other income/ (expense), net | 0.7 | 0.6 | +16.7% | - | 15.0 | -100.0% |
EBITDA | 140.6 | 162.9 | -13.7% | 401.5 | 502.2 | -20.1% |
as % of revenues | 29.1% | 30.2% | -1.1pp | 28.0% | 30.5% | -2.5pp |
Pro Forma EBITDA* | 144.3 | 162.9 | -11.4% | 415.7 | 512.1 | -18.8% |
as % of revenues | 29.8% | 30.2% | -0.4pp | 29.0% | 31.1% | -2.1pp |
Operating Income (EBIT) | 60.9 | 72.0 | -15.4% | 152.3 | 221.5 | -31.2% |
Voluntary Retirement costs/(reversals) | 3.7 | - | - | 14.2 | 9.9 | +43.4% |
Depreciation & Amortization | 79.7 | 90.9 | -12.3% | 249.2 | 280.7 | -11.2% |
* Excluding impact of Voluntary Retirement Programs
Total Greek fixed-line Revenues declined by 10.3%, a sharply improved rate of decline compared to prior quarters (Q2’11: -15.0%; Q1’11: -13.4%; Q4’10: -15.8%).
Total Greek fixed-line Operating Expenses, excluding depreciation, amortization and charges related to voluntary retirement programs, amounted to €339.9mn in Q3’11, a drop of 9.8% compared to €377.0mn in Q3’10.Total personnel related cost (payroll, benefits, staff retirement indemnities and youth account) rose to 34.1% of total revenues in Q3’11, up from 32.4% in the comparable quarter last year, but lower compared to Q2’11 of 37.2%.
In the quarter, OTE pursued efforts across the board to reduce its cost base. In addition to the new labor agreement reached in late September and to the measures highlighted above, which will enhance efficiency and customer-friendliness, OTE shut down a total of 71 shops.
2. FIXED LINE OPERATIONS, ROMANIA
SUMMARY FINANCIAL & ACCESS LINE DATA
| Sep 30, 2011 | Sep 30, 2010 | % Change |
Voice Telephony Lines (Incl. CDMA) | 2,527,181 | 2,646,043 | -4.5% |
Broadband subscribers (Incl. CDMA BB) | 1,106,946 | 947,379 | 16.8% |
TV subscribers (DTH, IPTV & Cable) | 1,208,293 | 1,003,182 | 20.4% |
(€ mn) | Q3 '11 | Q3 '10 | % Change | 9M '11 | 9M '10 | % Change |
Revenues | 160.1 | 181.5 | -11.8% | 492.5 | 546.8 | -9.9% |
Other income/ (expense), net | 4.0 | 4.5 | -11.1% | 12.2 | 22.7 | -46.3% |
EBITDA | 36.9 | 39.1 | -5.6% | 88.3 | 122.8 | -28.1% |
as % of revenues | 23.0% | 21.5% | +1.5pp | 17.9% | 22.5% | -4.6pp |
Pro Forma EBITDA* | 37.2 | 42.5 | -12.5% | 116.5 | 146.5 | -20.5% |
as % of revenues | 23.2% | 23.4% | -0.2pp | 23.7% | 26.8% | -3.1pp |
Operating Income (EBIT) | (3.0) | (13.9) | -78.4% | (31.7) | (52.1) | -39.2% |
Voluntary Retirement costs/(reversals) | 0.3 | 3.4 | -91.2% | 28.2 | 23.7 | 19.0% |
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* Excluding impact of Restructuring Plans
In an economic environment that shows no sign of improvement, exacerbating competition, RomTelecom posted an 11.8% drop in reported revenues in Q3’11. This decline, however, partly reflects a change in revenue-recognition policies related to accrued revenues reversal as well as a switch in commercial policy regarding customer-premise equipment (CPE). Excluding these two factors, comparable revenues were down by 8.7% compared to Q3’10, roughly in line with the drop experienced in prior quarters. The decline in the quarter primarily reflected a 17% decrease in PSTN services, due to line losses and lower ARPU.
RomTelecom partly offset the decline in voice telephony through ongoing rebalancing of its revenue mix. Compared to Q3’10, the total number of broadband customers rose by 17%, while the number of TV subscribers increased by 20%, largely reflecting subscriber acquisitions. Consequently, as a percentage of total RomTelecom voice clients, broadband penetration rose to 44% and television service penetration to 48%. As of September 30, 2011, the total number of revenue-generating units (RGUs, defined as voice, broadband and TV subscriptions) had risen to 4.9 million, up 5.3% compared to the end of Q3’10.
During the quarter, RomTelecom introduced a significant product portfolio redesign aimed at providing bundles that are simpler and more easily comparable with those of other operators, at leveraging upsell, and at combatting the lingering perception that RomTelecom is a voice-only provider.
In addition, subscription packages featuring CPE rental, offering more financial flexibility to the customers, were launched during the quarter.
Thanks to its CDMA network, RomTelecom was able to capture wireless broadband market share, with RGUs nearing 82,000 by the end of Q3’11.
NextGen, RomTelecom’s low-cost subsidiary, continued to gain market share, achieving a sequential RGU increase of 40% through a combination of organic growth and successful asset deals.
In the quarter, pro forma EBITDA excluding redundancy costs was adversely affected by the above-mentioned change in accounting policy. Excluding this adjustment, comparable pro forma EBITDA would be down only by 3.1% compared to Q3’10, resulting in a sizable improvement in pro forma EBITDA margin.
RomTelecom pursued its downsizing and migration to a more flexible, cost-effective operating model. As a result, operating expenses (excluding D&A and one-off costs) were down 11% in Q3’11, notwithstanding higher customer acquisition related costs, such as TV content. Payroll and benefits were down 23%, due to the improvements in operating efficiency and voluntary leave programs. As of September 30, 2011, total headcount at RomTelecom and subsidiaries was 7,421, down from 9,192 one year earlier, resulting in a sharp increase in productivity.
3. MOBILE OPERATIONS
SUMMARY FINANCIAL DATA
*Excluding impact of Restructuring Plan at Mobile Operations in Greece & Voluntary Exit Scheme in Romania
As of September 30, 2011, the mobile operations of the OTE Group counted approximately 20.4 million customers, down by 4.3% from the prior-year level, mainly due to the impact of prepaid registration in Greece. In markets that remain depressed and fiercely competitive, management estimates that the Group’s mobile operations strengthened their positions in all four countries in which they are present.
MOBILE OPERATIONS, GREECE
As of the end of Q3’11, Cosmote provided mobile telephony services to 7.9 million customers in Greece. The 5.5% drop in subscriber numbers compared to September 30, 2010 primarily reflects the final impact of the mandatory registration process introduced in late 2009.
Cosmote estimates that total mobile service revenues in the Greek market further declined in the quarter, as the challenging economic conditions continued to impact consumer spending. Against this backdrop, Cosmote recorded a service revenue decline of approximately 2% in the quarter, a sharp improvement compared to its performance in the first half of the year. Incoming revenues were down 23%, primarily reflecting termination rate cuts, while outgoing service revenues were up 2%, positively affected by a 36% increase in prepaid revenues.
Cosmote has developed a strong position in mobile internet data, supported by innovative, flexible offerings targeting all customer segments. Combined with the growing availability of affordable smartphones, this active approach led to a 14% increase in data revenues compared to the same quarter last year.
Roaming revenues benefited from an increase in tourism during the summer season compared to the prior year, as well as from higher traffic directed by roaming partners.
In 9M’11, blended AMOU increased by 16.1% to 302.6 minutes, continuing the trend of prior quarters, mostly driven by prepaid AMOU, up 18.3% as a result of attractive on-net offers. Blended ARPU for the same period was €15.7, down approximately 4% from 9M’10, mainly reflecting lower ARPU in the postpaid segment.
The 1% drop in EBITDA reflects strong cost-control across the board, including lower payroll and selling and distribution expenses.
MOBILE OPERATIONS, ALBANIA
In Q3’11, AMC’s total customer base reached approximately 1.8 million, a decrease of nearly 11.0% compared to Q3’10.
Revenues were once again affected by the implementation of lower local and international termination rates, the latter also heavily affecting EBITDA. Aggressive pricing strategies in a highly fragmented market also put pressure on service revenues, particularly in the prepaid segment.
Despite these negative factors, AMC achieved a solid EBITDA margin in the quarter, as management pursues efforts to optimize the organization’s cost structure with particular focus on marketing and distribution.
MOBILE OPERATIONS, BULGARIA
Globul’s postpaid customer base increased by 14% from Q3’10 to a total of over 2.5 million, or 60.8% of its total customer base. Globul launched additional innovative offers aimed at migrating customers from prepaid to postpaid services, resulting in a decrease in its prepaid customer base. All told, Globul’s total customer base at the end of Q3’11 was about 4.2 million, up 7% from the prior year level.
Globul’s fixed telephony offer using the mobile network had another quarter of strong growth, reaching a total subscriber base of 200k customers. Mobile data services also recorded a significant increase from the previous year, as the subscriber base more than tripled.
Service revenues increased by 0.8% in Q3’11, as the decline caused by the intense competition in the business postpaid segment was more than offset by improved performance in roaming and interconnect.
Operating expenses were up 7.6%, mainly due to higher handset sales. Despite savings in other expense categories, EBITDA decreased by 5.5% in the quarter.
MOBILE OPERATIONS, ROMANIA
As of the end of Q3’11, Cosmote’s total customer base in Romania reached 6.5 million, of which 22.8% was postpaid. With service revenues up approximately 7.0%, Cosmote Romania retained its market share despite intense competition, notably in the prepaid segment.
EBITDA increased by approximately 27% compared to the same quarter last year, meeting the company’s target and reflecting the significant operating improvements following the successful integration of Zapp as well as savings in distribution and network expenses. Cosmote Romania stands out among European mobile operators, achieving substantial service revenue and EBITDA growth under tough circumstances.
4. EVENTS OF THE QUARTER
FULL UTILIZATION OF €900MN SYNDICATED CREDIT FACILITY
On July 13, OTE drew the remaining €300mn available under the €900mn Syndicated Credit Facility signed in February 2011.
SHAREHOLDING CHANGES
On July 11, Deutsche Telekom AG purchased 49,015,038 shares of OTE SA with a total value of 391,630,153.62 euro, as a result of the exercise of a Put Option held by the Hellenic Republic based on the Shareholders Agreement of 2008. Following this transaction, the Hellenic Republic’s direct and indirect participation in OTE SA’s total shares and voting rights stands at 10.00% (49,015,042 shares), while Deutsche Telekom AG’s participation in OTE SA’s stands at 40.00000008%, (196,060,156 shares and voting rights).
COLLECTIVE LABOR AGREEMENT
On September 23, OTE SA agreed with its Union the framework of a three-year Collective Labour Agreement. The basic terms include: A reduction of weekly working hours to 35 hours, with a parallel reduction in salaries of approximately 11% and the guarantee that the company will not introduce work rotation or proceed with any dismissals for the duration of the Collective Labour Agreement.
BOND REPURCHASES
During Q3 2011 OTE PLC repurchased Notes with a total nominal amount of €80.2mn issued under its €650mn 3.75% program due on November 11, 2011. The repurchased Notes have been cancelled. The outstanding nominal amount of the Notes following the above repurchases at the end of the quarter was €276.0mn.
5. SUBSEQUENT EVENTS
OTE FILES FORM 15F TO TERMINATE SEC REGISTRATION AND REPORTING OBLIGATIONS
On September 29, OTE SA filed a Form 15F with the United States Securities and Exchange Commission in order to terminate its registration and reporting obligations. The termination of registration under the Exchange Act is expected to become effective approximately 90 days after the filing of the Form 15F.
OTE LAUNCHES SATELLITE TV OFFERING
On October 17, OTE launched satellite TV services in Greece to build up on the foothold gained through its IPTV offering. Both services will now be offered under the OTE TV brand.
NEW BOD MEMBER
On October 26, following the resignation of non-executive BoD member Mr. Roland Mahler, Ms. Claudia Nemat was elected as new member for the remainder of Mr. Mahler’s tenure and in the same capacity. Ms. Nemat has been a member of the Board of Management of Deutsche Telekom AG since October 2011, responsible for European operations outside of Germany.
6. OUTLOOK
For the balance of 2011, OTE expects that its revenues will continue to be affected by difficult economic conditions in all countries. In Greek mobile, market stabilization should continue. Mobile operations should also show more resilience in other countries. Ongoing cost-cutting measures should positively impact the Group’s performance.
About OTE
OTE Group is Greece's leading telecommunications organization and one of the pre-eminent players in Southeastern Europe, providing top-quality products and services to its customers.
Apart from serving as a full service telecommunications group in the Greek telecoms market, OTE Group has also expanded during the last decade its geographical footprint throughout South East Europe, acquiring stakes in the incumbent telecommunications companies of Romania and Serbia, and establishing mobile operations in Albania, Bulgaria, and Romania. At present, companies in which OTE Group has an equity interest employ about 28,700 peoplein four countries, and our portfolio of solutions ranges from fixed and mobile telephony to Internet applications, satellite, maritime communications and consultancy services.
OTE shares are listed on theAthens Stock Exchange, and theLondon Stock Exchange (in the form of GDRs). Following their delisting from NYSE in September 2010, the company’s ADRs trade in the US OTC market. OTE’s American Depositary Receipts (ADR’s) represent ½ ordinary share.
Additional Information is also available onhttp://www.ote.gr.
Contacts:
Dimitris Tzelepis - Head of Investor Relations
Tel: +30 210 611 1574, Email: dtzelepis@ote.gr
Maria Kountouri - Assistant to the Head of Investor Relations
Tel: +30 210 611 5381, Email:mkountouri@ote.gr
Kostas Maselis - Senior Financial Analyst, Investor Relations
Tel: + 30 210 611 7593, Email:kmaselis@ote.gr
Sofia Ziavra - Financial Analyst, Investor Relations
Tel: + 30 210 611 8190, Email:sziavra@ote.gr
Forward-looking statement
Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect the Company's future financial results are discussed more fully in the Company's filings with the U.S. Securities and Exchange Commission (the "SEC"), including the Company's Annual Report on Form 20-F for 2010 filed with the SEC on June 17, 2011. OTE assumes no obligation to update information in this release.
Exhibits to follow:
I.
Consolidated Balance Sheets as of September 30, 2011
II.
Consolidated Income Statements for the three months and nine months ended September 30, 2011
III.
Consolidated Statement of Cash Flows for the three months ended September 30, 2011
IV.
Group Revenues for the three months and nine months ended September 30, 2011
V.
Segment Reporting based on the Company’s legal structure
VI.
Mobile Operations
VII.
Operational Highlights
VIII.
EBITDA and Pro Forma EBITDA calculation
EXHIBIT I – CONSOLIDATED BALANCE SHEET
| Sep 30, 2011 | Dec 31, 2010 | |
ASSETS |
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Non - current assets: |
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Property, plant and equipment | 4,715.2 | 5,061.9 | |
Goodwill | 584.4 | 572.4 | |
Telecommunication licenses | 319.3 | 331.9 | |
Other Intangible assets | 423.6 | 455.5 | |
Investments | 371.2 | 156.5 | |
Loans and advances to pension funds | 122.8 | 126.2 | |
Deferred tax assets | 256.6 | 260.4 | |
Other non-current assets | 176.6 | 154.7 | |
Total non - current assets: | 6,969.7 | 7,119.5 | |
Current assets: |
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Inventories | 150.5 | 160.8 | |
Trade receivables | 949.7 | 1,010.8 | |
Other financial assets | 99.2 | 12.5 | |
Other current assets | 217.0 | 229.9 | |
Cash and cash equivalents | 1,072.0 | 1,004.3 | |
Total current assets | 2,488.4 | 2,418.3 | |
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| 9,458.1 | 9,537.8 | |
| Sep 30, 2011 | Dec 31, 2010 |
EQUITY AND LIABILITIES |
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Equity attributable to equity holders of the parent: |
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Share capital | 1,171.5 | 1,171.5 |
Share premium | 513.5 | 510.6 |
Statutory reserve | 347.2 | 347.2 |
Foreign exchange and other reserves | 26.4 | (147.3) |
Changes in non-controlling interests | (3,321.5) | (3,321.5) |
Retained earnings | 2,683.0 | 2,539.1 |
| 1,420.1 | 1,099.6 |
Non-controlling interests | 490.1 | 553.0 |
Total equity | 1,910.2 | 1,652.6 |
Non – current liabilities: |
|
|
Long-term borrowings | 4,147.7 | 3,211.4 |
Provision for staff retirement indemnities | 317.2 | 306.6 |
Provision for voluntary leave scheme | 4.8 | 29.9 |
Provision for Youth account | 266.4 | 301.4 |
Deferred tax liabilities | 93.2 | 66.3 |
Other non – current liabilities | 43.1 | 43.5 |
Total non – current liabilities | 4,872.4 | 3,959.1 |
Current liabilities: |
|
|
Trade accounts payable | 615.5 | 695.2 |
Short-term borrowings | 2.0 | 5.6 |
Short-term portion of long-term borrowings | 1,038.2 | 2,082.8 |
Income tax payable | 36.4 | 70.9 |
Deferred revenue | 232.5 | 249.0 |
Provision for voluntary leave scheme | 171.0 | 189.4 |
Dividends payable | 2.3 | 2.3 |
Other current liabilities | 577.6 | 630.9 |
Total current liabilities | 2,675.5 | 3,926.1 |
|
|
|
Total liabilities | 7,547.9 | 7,885.2 |
|
|
|
TOTAL EQUITY AND LIABILITIES | 9,458.1 | 9,537.8 |
Movement in OTE Group Shareholders’ equity | |
|
|
| 9M '11 |
|
|
Shareholders' equity, January 1 | 1,652.6 |
Profit for the period | 185.4 |
Dividends | (96.6) |
Other movements | 168.8 |
|
|
Shareholders' equity, September 30 | 1,910.2 |
|
|
EXHIBIT II – CONSOLIDATED INCOME STATEMENT
(€ mn) | Q3 '11 | Q3 '10 | % Change | 9M '11 | 9M '10 | % Change | |
Total Revenues | 1,312.5 | 1,392.7 | -5.8% | 3,792.2 | 4,152.4 | -8.7% | |
|
|
|
|
|
|
| |
Other income/ expenses net | 0.6 | 3.8 | -84.2% | 6.4 | 34.7 | -81.6% | |
|
|
|
|
|
|
| |
Operating Expenses: |
|
|
|
|
|
| |
Payroll and employee benefits | (255.4) | (273.3) | -6.5% | (795.9) | (857.2) | -7.2% | |
Provision for staff retirement indemnities | (6.0) | (6.9) | -13.0% | (17.7) | (20.4) | -13.2% | |
Provision for Youth Account | (4.8) | (6.7) | -28.4% | (14.3) | (19.8) | -27.8% | |
Cost of early retirement and restructuring programs | (4.1) | (3.4) | +20.6% | (53.8) | (36.2) | +48.6% | |
Charges from international operators | (57.4) | (52.5) | +9.3% | (159.5) | (145.4) | +9.7% | |
Charges from domestic telephony operators | (92.5) | (100.0) | -7.5% | (266.0) | (312.4) | -14.9% | |
Depreciation, amortization and impairment | (257.3) | (266.1) | -3.3% | (785.9) | (827.8) | -5.1% | |
Cost of telecommunications equipment | (89.6) | (116.2) | -22.9% | (264.1) | (328.6) | -19.6% | |
Other operating expenses | (339.0) | (342.5) | -1.0% | (972.8) | (1,030.2) | -5.6% | |
Total Operating Expenses | (1,106.1) | (1,167.6) | -5.3% | (3,330.0) | (3,578.0) | -6.9% | |
Operating income before financial results | 207.0 | 228.9 | -9.6% | 468.6 | 609.1 | -23.1% | |
|
|
|
|
|
|
| |
Financial results: |
|
|
|
|
|
| |
Interest expense | (74.9) | (69.2) | +8.2% | (209.8) | (239.3) | -12.3% | |
Interest Income | 6.3 | 5.5 | +14.5% | 17.1 | 20.1 | -14.9% | |
FX gain/(loss), net | (2.6) | 4.6 | -156.5% | 6.1 | (5.6) | -208.9% | |
Dividend income | 0.0 | 0.0 | - | 10.4 | 9.0 | +15.6% | |
Gains/(losses) from investments and financial assets | (0.1) | (0.2) | -50.0% | (0.3) | (3.0) | -90.0% | |
| (71.3) | (59.3) | +20.2% | (176.5) | (218.8) | -19.3% | |
|
|
|
|
|
|
| |
Profit before income taxes | 135.7 | 169.6 | -20.0% | 292.1 | 390.3 | -25.2% | |
|
|
|
|
|
|
| |
Income taxes | (31.5) | (46.2) | -31.8% | (106.7) | (291.1) | -63.3% | |
|
|
|
|
|
|
| |
Profit for the period | 104.2 | 123.4 | -15.6% | 185.4 | 99.2 | +86.9% | |
|
|
|
|
|
|
| |
Attributable to: |
|
|
|
|
|
| |
Owners of the parent | 104.4 | 126.3 | -17.3% | 196.8 | 131.3 | +49.9% | |
Non-controlling interests | (0.2) | (2.9) | -93.1% | (11.4) | (32.1) | -64.5% | |
EXHIBIT III – CONSOLIDATED STATEMENT OF CASH FLOWS
EXHIBIT IV – GROUP REVENUES
(€ mn) | Q3 '11 | Q3 '10 | % Change | 9M '11 | 9M '10 | % Change | ||||
| Domestic Telephony: |
|
|
|
|
|
| |||
| Basic monthly rentals | 156.8 | 184.7 | -15.1% | 489.7 | 573.2 | -14.6% | |||
| Local and long distance calls |
|
|
|
|
|
| |||
| -Fixed to fixed | 81.6 | 98.2 | -16.9% | 253.0 | 306.7 | -17.5% | |||
| -Fixed to mobile | 32.4 | 42.7 | -24.1% | 95.4 | 131.7 | -27.6% | |||
|
| 114.0 | 140.9 | -19.1% | 348.4 | 438.4 | -20.5% | |||
| Other | 15.5 | 17.1 | -9.4% | 47.8 | 53.2 | -10.2% | |||
| Total Domestic Telephony | 286.3 | 342.7 | -16.5% | 885.9 | 1,064.8 | -16.8% | |||
|
|
|
|
|
|
|
| |||
| International Telephony: |
|
|
|
|
|
| |||
International traffic | 15.5 | 17.0 | -8.8% | 46.3 | 52.8 | -12.3% | ||||
Payments from mobile operators | 8.9 | 11.8 | -24.6% | 23.2 | 30.9 | -24.9% | ||||
| 24.4 | 28.8 | -15.3% | 69.5 | 83.7 | -17.0% | ||||
Payments from International operators | 20.6 | 21.3 | -3.3% | 52.0 | 70.1 | -25.8% | ||||
| Total International Telephony | 45.0 | 50.1 | -10.2% | 121.5 | 153.8 | -21.0% | |||
|
|
|
|
|
|
|
| |||
| Mobile Telephony | 562.9 | 567.1 | -0.7% | 1,568.9 | 1,683.2 | -6.8% | |||
|
|
|
|
|
|
|
| |||
| Other Revenues: |
|
|
|
|
|
| |||
| Prepaid cards | 5.5 | 6.5 | -15.4% | 15.4 | 18.5 | -16.8% | |||
| Leased lines and data communications | 81.9 | 77.5 | +5.7% | 238.7 | 223.8 | +6.7% | |||
| ISDN, connection & monthly charges | 29.5 | 32.4 | -9.0% | 90.3 | 99.2 | -9.0% | |||
| Sales of telecommunication equipment | 86.5 | 112.6 | -23.2% | 249.0 | 301.4 | -17.4% | |||
| Internet services-ADSL | 74.3 | 79.3 | -6.3% | 223.8 | 233.9 | -4.3% | |||
| Collocation & LLU's | 52.3 | 44.7 | +17.0% | 151.7 | 126.4 | +20.0% | |||
| Metroethernet & IP CORE | 12.4 | 10.6 | +17.0% | 34.5 | 31.4 | +9.9% | |||
| Services rendered | 35.3 | 23.5 | +50.2% | 86.2 | 88.3 | -2.4% | |||
| Interconnection charges | 17.5 | 19.6 | -10.7% | 52.3 | 61.4 | -14.8% | |||
| Miscellaneous | 23.1 | 26.1 | -11.5% | 74.0 | 66.3 | +11.6% | |||
| Total Other Revenues | 418.3 | 432.8 | -3.4% | 1,215.9 | 1,250.6 | -2.8% | |||
| Total Revenues | 1,312.5 | 1,392.7 | -5.8% | 3,792.2 | 4,152.4 | -8.7% | |||
EXHIBIT V – SEGMENT REPORTING (9M 2011)
(€ mn) | OTE | Cosmote | RomTelecom | All Other | Total | Adjustments & Eliminations | Consolidated |
Revenues: |
|
|
|
|
|
|
|
Domestic Telephony | 669.0 | 0.0 | 213.9 | 10.3 | 893.2 |
|
|
International Telephony | 83.9 | 0.0 | 61.4 | 1.8 | 147.1 |
|
|
Mobile Telephony | 0.0 | 1,683.6 | 0.0 | 0.0 | 1,683.6 |
|
|
Other | 682.0 | 262.9 | 217.2 | 351.1 | 1,513.2 |
|
|
Total Revenues | 1,434.9 | 1,946.5 | 492.5 | 363.2 | 4,237.1 | (444.9) | 3,792.2 |
|
|
|
|
|
|
|
|
Intersegment Revenues | (116.5) | (118.3) | (20.2) | (189.9) | (444.9) |
|
|
|
|
|
|
|
|
|
|
Revenue from External Customers | 1,318.4 | 1,828.2 | 472.3 | 173.3 | 3,792.2 |
| 3,792.2 |
|
|
|
|
|
|
|
|
Other income/ (expense), net | - | (5.1) | 12.2 | 1.9 | 9.0 | (2.6) | 6.4 |
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
Payroll and employee benefits | (512.8) | (178.3) | (96.4) | (47.4) | (834.9) | 7.0 | (827.9) |
VRS & restructuring plans cost | (14.2) | (11.4) | (28.2) | - | (53.8) | - | (53.8) |
Payments to international operators | (69.1) | (17.5) | (28.9) | (138.3) | (253.8) | 94.3 | (159.5) |
Payments to domestic telephony operators | (105.9) | (195.8) | (49.6) | (0.1) | (351.4) | 85.4 | (266.0) |
Depreciation and amortization | (249.2) | (372.2) | (120.0) | (45.7) | (787.1) | 1.2 | (785.9) |
Cost of equipment & prepaid cards | (37.8) | (235.4) | (22.4) | (1.0) | (296.6) | 32.5 | (264.1) |
Other operating expenses | (293.6) | (617.9) | (190.9) | (98.6) | (1,201.0) | 228.2 | (972.8) |
Total Operating Expenses | (1,282.6) | (1,628.5) | (536.4) | (331.1) | (3,778.6) | 448.6 | (3,330.0) |
|
|
|
|
|
|
|
|
Operating Income (EBIT) | 152.3 | 312.9 | (31.7) | 34.0 | 467.5 | 1.1 | 468.6 |
Pro forma* EBITDA | 415.7 | 696.5 | 116.5 | 79.7 | 1,308.4 | (0.1) | 1,308.3 |
as % of Revenues | 29.0% | 35.8% | 23.7% | 21.9% | 30.9% |
| 34.5% |
*Excluding impact of Voluntary Retirement Programs and Restructuring Plans
EXHIBIT V – SEGMENT REPORTING (9M 2010)
(€ mn) | OTE | Cosmote | RomTelecom | All Other | Total | Adjustments & Eliminations | Consolidated |
Revenues: |
|
|
|
|
|
|
|
Domestic Telephony | 790.8 | 0.0 | 255.1 | 12.0 | 1,057.9 |
|
|
International Telephony | 114.7 | 0.0 | 69.8 | 2.0 | 186.5 |
|
|
Mobile Telephony | 0.0 | 1,807.1 | 0.0 | 0.0 | 1,807.1 |
|
|
Other | 742.6 | 313.3 | 221.9 | 322.7 | 1,600.5 |
|
|
Total Revenues | 1,648.1 | 2,120.4 | 546.8 | 336.7 | 4,652.0 | (499.6) | 4,152.4 |
|
|
|
|
|
|
|
|
Intersegment Revenues | (151.9) | (127.8) | (15.9) | (204.0) | (499.6) |
|
|
|
|
|
|
|
|
|
|
Revenue from External Customers | 1,496.2 | 1,992.6 | 530.9 | 132.7 | 4,152.4 |
| 4,152.4 |
|
|
|
|
|
|
|
|
Other income/ (expense), net | 15.0 | - | 22.7 | 1.8 | 39.5 | (4.8) | 34.7 |
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
Payroll and employee benefits | (552.4) | (184.2) | (120.7) | (48.8) | (906.1) | 8.7 | (897.4) |
Voluntary retirement costs | (9.9) | (2.6) | (23.7) | - | (36.2) | - | (36.2) |
Payments to international operators | (85.9) | (29.0) | (37.7) | (97.3) | (249.9) | 104.5 | (145.4) |
Payments to domestic telephony operators | (135.8) | (227.1) | (42.0) | (0.1) | (405.0) | 92.6 | (312.4) |
Depreciation and amortization | (280.7) | (369.3) | (144.6) | (34.6) | (829.2) | 1.4 | (827.8) |
Cost of equipment & prepaid cards | (55.4) | (292.8) | (24.9) | (1.8) | (374.9) | 46.3 | (328.6) |
Other operating expenses | (321.5) | (647.7) | (197.7) | (113.3) | (1,280.2) | 250.0 | (1,030.2) |
Total Operating Expenses | (1,441.6) | (1,752.7) | (591.3) | (295.9) | (4,081.5) | 503.5 | (3,578.0) |
|
|
|
|
|
|
|
|
Operating Income (EBIT) | 221.5 | 367.7 | (21.8) | 42.6 | 610.0 | (0.9) | 609.1 |
Pro forma* EBITDA | 512.1 | 739.6 | 146.5 | 77.2 | 1,475.4 | (2.3) | 1,473.1 |
as % of Revenues | 31.1% | 34.9% | 26.8% | 22.9% | 31.7% |
| 35.5% |
* Excluding impact of Voluntary Retirement Programs and Restructuring Plans
EXHIBIT VI– MOBILE OPERATIONS
(€ mn) | Q3 '11 | Q3 '10 | % Change | 9M '11 | 9M '10 | % Change |
Revenues: |
|
|
|
|
|
|
Monthly service fees | 197.9 | 207.5 | -4.6% | 599.0 | 635.8 | -5.8% |
Airtime revenues | 228.5 | 216.6 | +5.5% | 593.4 | 649.7 | -8.7% |
Interconnection revenues | 101.7 | 109.1 | -6.8% | 285.9 | 323.6 | -11.7% |
Roaming revenues | 21.6 | 20.5 | +5.4% | 35.5 | 36.6 | -3.0% |
SMS revenues and other services | 55.6 | 57.3 | -3.0% | 169.8 | 161.4 | +5.2% |
Sales of handsets and accessories | 83.7 | 104.3 | -19.8% | 237.5 | 290.0 | -18.1% |
Commission revenues | 1.0 | (0.2) | - | 2.1 | 1.1 | +90.9% |
Οther operating revenues | 8.3 | 8.2 | +1.2% | 23.3 | 22.2 | +5.0% |
Total Revenues | 698.3 | 723.3 | -3.5% | 1,946.5 | 2,120.4 | -8.2% |
Revenues from |
|
|
|
|
|
|
telecommunication services | 605.3 | 610.9 | -0.9% | 1,683.6 | 1,807.1 | -6.8% |
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
Interconnection | (73.9) | (88.3) | -16.3% | (213.4) | (256.2) | -16.7% |
Cost of goods | (81.2) | (98.5) | -17.5% | (231.3) | (287.1) | -19.4% |
Payroll | (58.0) | (59.3) | -2.2% | (189.7) | (186.7) | +1.6% |
Network operating costs | (52.7) | (53.1) | -0.8% | (162.4) | (164.2) | -1.1% |
Distribution & sales | (74.5) | (77.9) | -4.4% | (199.5) | (231.9) | -14.0% |
Marketing & Customer care | (35.3) | (40.7) | -13.3% | (111.1) | (133.9) | -17.0% |
General & administrative | (28.0) | (21.6) | +29.6% | (78.1) | (77.0) | +1.4% |
Provision for doubtful accounts | (27.5) | (17.1) | +60.8% | (70.8) | (46.4) | +52.6% |
Depreciation | (122.7) | (120.8) | +1.6% | (372.2) | (369.3) | +0.8% |
Other Operating income/(expenses) | (3.8) | 0.0 | - | (5.1) | 0.0 | - |
Total Operating Expenses | (557.6) | (577.3) | -3.4% | (1,633.6) | (1,752.7) | -6.8% |
|
|
|
|
|
|
|
Operating Income (EBIT) | 140.7 | 146.0 | -3.6% | 312.9 | 367.7 | -14.9% |
|
|
|
|
|
|
|
EBITDA | 263.4 | 266.9 | -1.3% | 685.1 | 737.0 | -7.0% |
as % of Revenues | 37.7% | 36.9% | +0.8pp | 35.2% | 34.8% | +0.4pp |
Pro forma* EBITDA | 263.5 | 266.9 | -1.3% | 696.5 | 739.6 | -5.8% |
as % of Revenues | 37.7% | 36.9% | +0.8pp | 35.8% | 34.9% | +0.9pp |
*Excluding impact of Voluntary Retirement Programs and Restructuring Plans
EXHIBIT VII –OPERATIONAL HIGHLIGHTS
| 30 Sep 11 | 30 Sep 10 | % Change |
Fixed Line Operations, Greece |
|
|
|
PSTN connections | 3,102,912 | 3,484,309 | -10.9% |
ISDN connections (BRA & PRA) | 444,641 | 491,184 | -9.5% |
Total PSTN & ISDN connections | 3,547,553 | 3,975,493 | -10.8% |
Wholesale line rental connections | 91,384 | 60,744 | +50.4% |
|
|
|
|
ADSL active subscribers | 1,142,011 | 1,134,287 | +0.7% |
IPTV Subscribers | 55,577 | 40,487 | +37.3% |
Unbundled local loops (active) | 1,575,721 | 1,281,378 | +23.0% |
Employees | 10,742 | 11,143 | -3.6% |
|
|
|
|
Fixed Line Operations, Romania | |||
Voice Telephony lines (Incl. CDMA) | 2,527,181 | 2,646,043 | -4.5% |
Broadband subscribers(Incl. CDMA BB) | 1,106,946 | 947,379 | +16.8% |
TV subscribers (DTH, IPTV & Cable) | 1,208,293 | 1,003,182 | +20.4% |
Employees | 7,421 | 9,192 | -19.3% |
Mobile Operations |
|
|
|
Mobile subscribers, Greece | 7,873,218 | 8,330,455 | -5.5% |
Mobile subscribers, Albania | 1,819,692 | 2,037,899 | -10.7% |
Mobile subscribers, Bulgaria | 4,165,597 | 3,886,075 | +7.2% |
Mobile subscribers, Romania | 6,540,235 | 7,059,064 | -7.3% |
of which Zapp | 170,798 | 328,723 | -48.0% |
Employees | 8,674 | 9,182 | -5.5% |
EXHIBIT VIII –EBITDA AND PRO-FORMA EBITDA CALCULATION
EBITDA and pro forma EBITDA, as defined by OTE, are financial measures that help OTE to evaluate its core business operating results, before investing and financing activities, and before the effect of depreciation, amortization and impairment and to compare the performance of OTE and its subsidiaries with that of its peer group, which mainly consists of other European incumbent telecommunications operators. The following table provides a reconciliation of profit/loss for the period attributable to shareholders of the parent to EBITDA and pro forma EBITDA. Please note that according to the OTE structure of accounts, EBITDA and pro forma EBITDA as defined above are equivalent to items previously reported by OTE as OIBDA and pro forma OIBDA.
(€ mn) | Q3 '11 | Q3 '10 | % Change | 9M '11 | 9M '10 | % Change |
Profit/loss for the year attributable | 104.4 | 126.3 | -17.3% | 196.8 | 131.3 | +49.9% |
Plus: |
|
|
|
|
|
|
Depreciation amortization and impairment | 257.3 | 266.1 | -3.3% | 785.9 | 827.8 | -5.1% |
Total loss from financial activities * | 71.3 | 59.3 | +20.2% | 176.5 | 218.8 | -19.3% |
Income taxes | 31.5 | 46.2 | -31.8% | 106.7 | 291.1 | -63.3% |
Minority interest | (0.2) | (2.9) | -93.1% | (11.4) | (32.1) | -64.5% |
Operating income before depreciation | 464.3 | 495.0 | -6.2% | 1,254.5 | 1,436.9 | -12.7% |
Adjustments: |
|
|
|
|
|
|
Cost of early retirement programs | 4.1 | 3.4 | +20.6% | 53.8 | 36.2 | +48.6% |
Adjusted operating income before | 468.4 | 498.4 | -6.0% | 1,308.3 | 1,473.1 | -11.2% |
* Total profit/(loss) from financial activities includes interest expense, interest income, foreign exchange | ||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Hellenic Telecommunications Organization S.A.
Date: November 10, 2011
By :/s/Kevin Copp
Name:Kevin Copp
Title:OTE GROUP CHIEF FINANCIAL OFFICER