Greek Telecoms Operator Posts Profit Surge

Greek Telecoms Operator Reports Second-Quarter Profit More Than Doubles on Lower Tax Rate ATHENS, Greece (AP) -- Greece's largest telecoms operator, OTE, said Wednesday its second-quarter net profit more than doubled because of a lower tax rate and a sharp increase in earnings at its Romanian unit.

However, OTE's domestic fixed-line business revenues fell, extending a three-year trend. Sales have been hit by subscribers switching to mobile phones.

"Greek fixed-line operations showed some resilience in the quarter, and we seem to have put a halt to the continuing growth in operating expenses, but the overall performance remains weak," OTE Chief Executive Panagis Vourloumis said in a statement.

OTE is restructuring and cutting jobs as part of efforts to lower the fixed-line division's costs.

The company's net profit rose to euro119.1 million (US$145.1 million) in the second quarter from euro45 million (US$54.8 million) in the same period a year earlier. Revenues climbed to euro1.36 billion (US$1.6 billion) from euro1.3 billion (US$1.6 billion) on year.

In the second quarter, earnings were buoyed by euro20 million (US$24.4 million) income from investments as well no longer having to bear costs the company incurred last year when sponsored the Olympic Games. The tax rate also fell to 30 percent from 48 percent in 2004.

At an operational level, OTE's Romanian business, RomTelecom, posted a surge in net profit to euro57.6 million (US$70.2 million) from euro9.3 million (US$11.3 million) a year earlier.

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