Telecom carriers show mixed results for 2008

Orange, the largest mobile telecom group in Romania, had a remarkable growth in 2008 and gained the top spot as the nation’s most profitable company, pushing the long term leader down to third. While the largest mobile telecom carriers racked up big profits last year, the other players reported lower profits or even mild losses, according to the financial reports posted on the website of the Ministry of Finance.

No 1 telecom carrier � most profitable company in Romania

Orange, the country’s largest mobile telecom group in Romania, posted sales of 1.28 billion euros, up 6 percent over a year earlier.

The company’s profit zoomed 20 percent year-on-year, to 437.9 million euros in 2008. At the end of 2008, Orange Romania reported a 10,335,000-client database, 6 percent up from prior-year period. The average annual revenue per user was of 119 euros.

In March last year, the group said it passed the 10,000,000 users database mark, after nearly ten years since it started operating in Romania.

The lion’s share of the growth was driven by the number of broadband clients, which hiked 65 percent, to 1,673,000.

Vodafone - up 3 percent

In 2007, the nation’s second largest telecom operator in Romania booked a net profit of 264.7 million euros and sales of 1.15 billion euros.

A year earlier, Vodafone reported sales up 3 percent, to 1.18 billion euros. Profit increased by 16 percent, to 306.6 million euros.

The mobile-phone company Vodafone Romania said previously its full FY- operating earnings before interests, taxes, depreciation and amortization fell 3.5% down to 527 million euros from 546 million euros in FY 2007-2008.

The carrier registered 667,212 net additions in customer base in 2008/2009 for a total of 9,588,065 in the fiscal year ending in March 31, 2009. Vodafone Romania extended its users portfolio by 7.5% from prior FY.

Average revenue per user (ARPU) was EUR 9.85 for the year ending March 31, 2009, as compared to EUR 10.76, at the end of March, 2008, corresponding to a decline of 8.5% year on year.

The number of 3G devices in Vodafone Romania network went up to 1,135,260 by March 31, 2009 which represents a 78.3% year on year growth.

Cosmote-Zapp, profitless combination

Cosmote, third largest mobile-phone company in Romania said its 2008 sales doubled, reaching 311 million euros.

Despite the 104.2 million euros net loss, the carrier posted positive EBITDA, of 22.5 million euros.

Cosmote, fully-owned subsidiary of the Greek-based OTE, recorded over 2.2 million additions in the customer base in 2008, up 44% from 2007, and in March this year, it passed the 6million client mark.

Zapp carrier, held by Telemobil posted sales of 60.7 million euros in 2008 and loss of 40.5 million. In 2007, the company booked loss of 9.3 million euros and sales of 89.7 million euros. If the other carriers increased headcount, Zapp downsized it. From 761 employees in 2007, the company had in 2008 698.

One million euros for the largest fixed-line telecom operator

Romtelecom, the nation’s largest fixed-line telecom operator posted one million euro profit for 2008, from 23.1 million euros a year earlier.

Earlier this year, Romtelecom said it would layoff 2,500. According to the Ministry of Finance, in 2007, the operator had a headcount of 12,419 and in 2008 it had 11,244.

RCS&RDS and UPC, in the red

RCS&RDS, second largest fixed-line telecom operator posted loss of 22.9 million euros in 2009 from 18.5 million euros a year earlier.

The group headed by Zoltan Teszari had sales of 386.7 million euros last year, 11.6 percent up from 346.5 million euros a year earlier.

UPC, third biggest landline operator posted losses of 100 million euros compared to 68.9 million euros in 2007. At the end of 2008, UPC’s client database stood at 124,000.