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Romtelecom & COSMOTE Romania ended 2013 with growth on key segments

Romtelecom & COSMOTE Romania ended 2013 with growth on key segments

Romtelecom and COSMOTE Romania announce key performance indicators for 2013 fiscal year, ended December 31st, 2013, as reported by the OTE Group.

“Overall, 2013 was full of challenges and achievements, both for our fixed and mobile operations. For the fixed segment, ICT solutions delivered by Romtelecom had the most impressive growth rate. TV and Internet services contributed significantly to the company’s evolution in terms of revenues and customer base. Carrier services revenues played as well a significant role to the company’s financial stability. On the mobile side, the key milestone for Q4 2013 was the radical reshape of the postpaid portfolio, a revolutionary threshold powered by COSMOTE, relying on innovation through simplicity and unlimited communication. I am confident that the performance in 2013 is the result of customers’ positive response to our commercial initiatives and the proof that the strategy we set is the correct one”, said Nikolai Beckers, Chief Executive Officer Romtelecom and COSMOTE Romania.

For the full year 2013, Romtelecom continued its growth path, based on its defined key development pillars: turn-key ICT solutions, TV, and Internet services, with a solid contribution from carrier services revenues.
Thus, in the fourth quarter of 2013, Romtelecom reported revenues up by 8.

8% compared to Q4 2012, amounting to 162.7 million Euros. Revenues for the full year 2013 were 609.5 million Euros, roughly stable compared to 2012. Also, EBITDA for Q4 2013 was up by 13.3% compared to Q4 2012.

The biggest growth rate in revenues in Q4 2013 vs. Q4 2012 – over 470% - was the one registered by System Solutions (ICT), consolidating Romtelecom’s leading position on this market segment. The company implements turn-key ICT solutions for corporate organizations (which include managed services, desktop virtualization etc.), and is also responsible for operating the solutions.

TV recorded a 7% increase in the customer base, reaching over 1.3 million at the end of 2013. Broadband customer base was up by 4.5% for the same period, thus managing to leverage the decreasing trend of traditional voice. In terms of revenues growth rates, the one for Internet services was of 7%, respectively 7.4% for TV in the quarter. In total, Romtelecom reported a growing RGUs base of over 4.85 millions for the end of 2013.

A relevant contribution to total revenues reported by Romtelecom for Q4 2013 comes from carrier services, up by 31.1% vs. Q4 2012, with a similar positive trend for full year, despite the negative trend generated by the Regulator-imposed termination fee reductions.

COSMOTE Romania ended 2013 year on a healthy track, proving financial performance in main indicators and consolidating its market position by optimizing its products and services portfolio and continuing network rollout. COSMOTE maintained a sustained growth in the business customer base, as a result of the increase of data services usage. Thus, in 2013, the business segment grew by 10.3% on a yearly basis.

Total customer base (including Zapp) stood at approximately 6.1 million, at the end of 2013, with the postpaid ratio increasing to 25.9%, up by 1.1% in Q4 2013 versus the same period last year.

Despite a challenging 2013, revenues in Q4 2013 increased by 8.1% on an yearly basis, amounting to 123 million Euro. Overall 2013 revenues remained relatively stable, at 458.5 million euro. Pro Forma EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) margin increased by 0.1pp, to 25.9%, in FY 2013 versus FY 2012, reflecting higher margins propositions and significant operating improvements. EBITDA reached 118.9 million Euro.

Blended ARPU (Average Revenue Per User) increased by 1.9% in FY 2013 compared to FY 2012 due to higher outgoing ARPU. 

COSMOTE Romania offers a state of the art 3G data network with mobile broadband download speeds of up to 43.2 Mbps in 249 cities and over 3,850 localities across Romania, covering almost 67% of the population. Moreover, customers enjoy speeds of up to 21.6 Mbps in HSPA+ technology in 285 cities across the country. Overall, 3G services cover almost 80% of the Romanian population. Also, the company offers 4G population coverage for 90% of the capital, alongside Otopeni, Ploiesti, Cluj, Iasi and Sinaia, Busteni, Predeal resorts and 10 district capitals: Bacau, Suceava, Botosani, Piatra Neamt, Constanta, Braila, Galati, Buzau, Satu Mare, Baia Mare.

Romtelecom and COSMOTE Romania are constantly enhancing their integrated sales strength and invest in developing their national sales distribution channels, which included, at the end of 2013, approximately 720 points of sale (own & partner stores) and over 34,000 kiosks across the country.

“Looking forward, in 2014 Romtelecom and COSMOTE will enhance the fixed-mobile synergies, being the only player in the Romanian market to offer customers truly complete telecommunications and entertainment propositions. Our strong, integrated organization will continue to operate efficiently and focused, bringing value to our customers and shareholders”, concluded Nikolai Beckers, Chief Executive Officer Romtelecom and COSMOTE Romania.

At end of 2013, mobile operations of the OTE Group provided telecommunications services to approximately 15.6 million customers in SE Europe.


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) The main idea with this double, trplie, quad or n-play is not exactly related to the aggregation of distribution or to promotion costs. The admin costs of the network may be reduced, but the complexity grows so high as the engineers will really have big issues in their work (mobile telephony engineers don\'t usually know shit about Internet services or cable TV and the other way as well). The trick with this n-play is more about keeping the customer prisoner and about retention. If somebody subscribes to n-play service, his once signed contract will cover all the services and the probability to move to competition for the sake of a better deal for one service is low. Also his contacts with the competition will be lower (one bill, one self service web site, one customer service, one sales rep or store etc.). As this kind of services (mobile and fixed telephony, Internet access, cable and satellite TV) are getting more and more commoditized, the only chance for the operators is to try to increase ARPU (average revenue per user) by offering more services and to keep customers in their garden with integrated offers. The innovation in this area is low, new services are far away from raising the level of interest, either the margins that, for example mobile telephony was providing some 5 years ago. Other source of pressure: if you don\'t do it, your competition will and you can not stay out of this game! G
crorkz matz
WmgeQn Hey, thanks for the blog article.Really looking forward to read more.
G0h5za I value the post.Much thanks again. Will read on...
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