Cosmote Mobile Tele - FY2007 Results

Wed Mar 19, 2008 5:56am EDT

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RNS Number:4444Q
Cosmote Mobile Telecommunications
19 March 2008

Press Release

                      COSMOTE GROUP FULL YEAR 2007

                          FINANCIAL RESULTS(1)


                         Revenues €3,060.3 mil (+28.5%)
             EBITDA €985.9 mil (+12.5%) - EBITDA margin 32.2%
                      Net Income €361.3 million (+0.2%)
                  Group subscribers 15.5 million (+39.1%)

                                                        Athens, March 19th, 2008


COSMOTE MOBILE TELECOMMUNICATIONS S.A., the mobile operator with the widest
presence in South East Europe, announces consolidated operational and financial
results for the fiscal year ended December 31st, 2007, under IFRS. COSMOTE
operates in five countries, namely, Greece, Albania, Bulgaria, FYROM and
Romania, through COSMOTE Greece, AMC, GLOBUL, COSMOFON and COSMOTE Romania
respectively. Since October 2006 COSMOTE is also consolidating GERMANOS.

2007 has been a year of very strong operational performance in all markets, with
COSMOTE gaining share in the mature Greek market and in its recently established
Romanian operation while substantially expanding its customer base in Albania,
Bulgaria and FYROM despite aggressive new entrants in the latter two countries.

This performance has been primarily the result of GERMANOS' contribution to
subscriber acquisitions. A full year after consolidation, GERMANOS is exceeding
its customer addition targets, with 839k net adds in Q4 alone and over 2.4
million for the year. Total net subscribers added in Q4 reached a total of 1.5
million in all five countries of operations, a significant improvement from the
1.25 added in Q4 2006. The high subscriber growth in Q4 brought total adds for
the Group during 2007 to 4.4 million, and the total base to 15.5 million
customers, a 39.1% customer growth from 2006.

The 15 million customer base benchmark that was set as a 2009 target has already
been exceeded at the end of 2007, as a result of the Group's successful strategy
throughout the markets of its presence. In turn, this has been based on
significant advantages, relative to competition, in distribution, network
quality and innovative offers.

Consolidated revenue growth for the twelve months reached 28.5% y-o-y and
excluding the GERMANOS impact, approximately 14.2%. In Q4, consolidated revenue
growth reached 7.7%, driven by strong performance by all mobile operating units.
Notably, revenue growth in Q4 accelerated in Greece and in GERMANOS compared to
the 9 month's rate. The increased contribution of GERMANOS to COSMOTE sales,
whilst a key operational target leading subscriber growth and better customer
control at Group level, also implied higher intra-group sales, increasing
consolidation eliminations relative to initial targets.

In Greece, COSMOTE continued to drive sales growth through increasing subscriber
numbers and gaining market share, as the net adds share during 2007 reached 49%.
At the same time, positive usage elasticity is leading to significant traffic
growth, resulting in significant outgoing revenue growth. As a result, ARPU
declines have been contained, despite aggressive pre-paid price reductions. In
Albania, AMC continued its strong performance, with revenues driven by post paid
subscriber expansion; in Bulgaria, GLOBUL succeeded in sustaining fast revenue
growth with a further improvement in its margin, in a highly competitive
environment; COSMOFON in FYROM continues its upward path improving steadily its
EBITDA profitability and achieving positive net income for the first time on a
full year basis; COSMOTE Romania continues attracting strong subscriber numbers
reaching a c.16% market share, on track to meet its benchmark financial target
of positive EBITDA in 2008. GERMANOS is now an integral part of the Group's
strategy, focusing on the retail and wholesale distribution competitive
advantage, thus driving the Group's growth. GERMANOS, by increasing
substantially its net additions to COSMOTE in all regions of common operations,
now accounts for c.58% of total Group net additions (ex Albania) in 2007.

                        COSMOTE        AMC       GLOBUL     COSMOFON     COSMOTE     COSMOTE
                        Greece                                           Romania       Group
Net adds Q4 07          329,261      59,736      215,672     52,165      798,215    1,455,049
Net adds Q4 06          193,990      89,314      389,379     22,180      555,918    1,250,781
Customers 12M 07      6,268,627   1,195,183    3,872,922    593,026    3,616,274   15,546,032
Growth y-o-y             20.1%        20.7%       18.4%       25.5%      195.1%       39.1%

Consolidated EBITDA increased by 3.2% in Q4 and 12.5% in the twelve months.
EBITDA was affected by certain one-off items, mainly at the COSMOTE Greece
level, of about €10 million. Of this total, approximately €3.5 million were
taken in Q4. Adjusting for those items, EBITDA growth would have reached 13.7%
for the full year. Given these one-off non-operating items, the continuing
improvement in international operations and the steady growth in Greece, the
Group is on track to resume faster EBITDA growth in future quarters.

Group net income increased marginally in 2007. In Q4, net income was negatively
affected by increased financial and depreciation expenses due to higher capital



IFRS (audited)       COSMOTE      AMC       GLOBUL     COSMOFON    COSMOTE    GERMANOS                  Consolidated
(Amounts in mil.€)   Greece                                        Romania       GROUP
                                                                                         Q4-07    Q4-06       A
Revenues              441.4       46.1       110.9       15.8        50.4      304.3     809.3    751.8     7.7%
EBITDA*               177.7       27.7        43.8        5.0       -11.8        7.5     240.5    233.1     3.2%
EBITDA margin          40.3%      60.1%       39.5%      31.6%        n/a        2.5%     29.7%    31.0%    -1.3pp
Net Income             80.7       14.7        13.8        0.9       -53.2        2.7      85.4     86.6     -1.4%
Net Inc. margin        18.3%      31.8%       12.4%       5.7%        n/a        0.9%    10.6%    11.5%     -0.9pp

* Defined as Earnings before depreciation, net financial expenses and other non
operating expenses and revenues, tax and minority interests. EBITDA is a
financial indicator defined and used by the Company and is not being reviewed by
the auditors.

                    SUMMARY FINANCIAL DATA FOR THE YEAR 2007


IFRS (audited)       COSMOTE      AMC       GLOBUL     COSMOFON    COSMOTE    GERMANOS                  Consolidated
(Amounts in mil.€)   Greece                                        Romania       GROUP
                                                                                         12M-07   12M-06     A

Revenues             1,735.9     176.2       412.1       62.2       155.6      992.6    3,060.3  2,382.3   28.5%
EBITDA                724.4      109.3       161.7       19.3       -39.2       31.7     985.9    876.2    12.5%
EBITDA margin         41.7%      62.0%       39.2%       31.0%       n/a        3.2%     32.2%    36.8%    -4.6pp
Net Income            339.2       60.9       53.2         0.1       -118.4      14.2     361.3    360.5     0.2%
Net Inc. margin       19.5%      34.6%       12.9%       0.1%        n/a        1.4%     11.8%    15.1%    -3.3pp

Group Capital Expenditure, Debt

Total Group capital expenditure reached approximately €547 million in the twelve
months 2007, in line with updated guidance given with the Q3 results. Romania
continued to absorb the majority (c. €201 million), investing heavily to expand
its network capacity. Greece absorbed €146 million and Bulgaria a further €127
million. Increased customer intake, resulting in substantial traffic growth in
all markets led to increased capital investments. However, as the Romanian
network rollout has reached competitive levels, capital expenditure in the next
two years is expected to be reduced compared to 2007.

At the end of 2007, Group net debt stood at €2.5 billion.


2.1 GREECE - COSMOTE: Steadily leading the market in subscriber additions

Capturing 49% of net additions in the market during 2007, COSMOTE continued its
strong performance driven by increasing customer levels and market share.
Indeed, it is estimated that, excluding "fixed" service subscriptions offered by
competitors, COSMOTE's share in net additions of mobile contract customers
exceeded 65% in 2007. During the year, COSMOTE Greece added c.1.1 million
customers, of which 31% in Q4. Once again, sustaining the trend since the
acquisition of Germanos in Q4 2006, COSMOTE maintained a clear lead in net
additions, further strengthening the company's leading position and market share
in the Greek mobile market.

During Q4 07 COSMOTE Greece added 70,609 net new contract subscribers, double
the number added in Q4 06, and 258,652 net new pre-paid subscribers bringing the
total number of customers at the end of 2007 to almost 6.3 million, 20% higher
than a year ago. This is a 5th consecutive quarterly record in net adds.
GERMANOS is continuing its strong contribution, having generated 79% of the
quarterly net post-paid subscriber additions. Total contract customers at the
end of 2007 reached 2.039 million (+10% y-o-y) while pre-paid customers reached
4.229 million.

At the same time, voice traffic (outgoing & incoming) during the quarter
continued its upward path, increasing by 33%. Total outgoing minutes increased
by 40.7% in Q4 and by 35.5% in the 12 months, as both the post and the prepaid
segments showed higher usage. As a result, outgoing voice revenues increased by
12.4% for the full year, reaffirming the strong positive elasticity that COSMOTE
has been able to drive from its subscriber base for several consecutive

While the Greek market is reaching maturity phase, COSMOTE continued its revenue
growth, driven by voice, as it has been steadily increasing its market share in
subscribers, traffic and revenues. Based on a strategy that focuses on extensive
and quality distribution, best-in-class telecommunications network in both 2G
and 3G networks and innovative and competitive offerings, COSMOTE is well placed
to exploit further top line growth.

Summary Financial Results for COSMOTE Greece for the 3 & 12 months ended
December 31st, 2007 & 2006

(Amounts in mil. €, audited)     Q4-07         Q4-06          A         FY-07       FY-06         A
Revenues                         441.4          412.6       7.0%       1,735.9     1,630.6      6.5%
EBITDA                           177.7         176.1        0.9%        724.4       702.1       3.2%
EBITDA margin                    40.3%         42.7%       -2.4pp       41.7%       43.1%      -1.4pp
Net Income                       80.7          77.1         4.7%        339.2       344.7       -1.6%
Net Income margin                18.3%         18.7%       -0.4pp       19.5%       21.1%      -1.6pp

In Q4, revenue growth reached 7% bringing the 2007 growth to 6.5%. Notably,
revenue growth in the second half of the year, at 7.3%, has accelerated
significantly compared to the first half when revenue growth was 5.6%. This
result has been achieved despite a significant tariff reduction in segments of
the prepaid market and aggressive post paid seasonal offers effected during Q4.

Outgoing voice revenues rose by 11.8% vs Q406, driven by both the post- and the
pre-paid market segments. Specifically, post paid outgoing voice revenue
increased by over 9% and pre-paid by 21%, despite the aggressive pricing
environment. Total outgoing revenues increased by 10.5% in Q4 and 10.7% in 2007
compared to the same period last year, continuing the steady upward trend.

Incoming revenues, having been impacted by the termination rate cuts during
2007, were down by 4.2% compared to Q4 06 and account for c.20.5% of total Q4 07
revenues. The incoming revenue decline has been limited to 3.8% in H2 compared
to 5.3% in H1. F2M revenues account for 6.9% of total revenues for the quarter.
Notably, incoming minutes increased by over 16% both for the quarter and the
full year limiting the negative impact of the 23% rate cut compared to FY 2006.

Data revenues (which include SMS, MMS, i-mode(R) and other data revenues from
Value Added Services) represent 9.8%(2) of total telecommunication revenues for
the full year. SMS revenues registered a limited decline, mainly due to SMS -
inclusive offers in the pre-paid segment. Non-SMS data revenues stand at just
over 2% of total Greek revenues, showing a significant growth since pervious
quarters. COSMOTE plans to increasingly focus on driving this untapped potential
in the coming quarters, exploiting its significant competitive advantage in 3G &
HSPA coverage.

Visitor roaming revenues for the quarter show a 4.1% increase compared to Q4 06.
For the full year however, they show a c.9% decline due to an estimated 9.2%
average wholesale rate decline in the eight months to August and a further 17.8%
decline in September, which were partially offset by a c.8.2% increase in
traffic for the full year compared to 2006.

EBITDA in Greece increased by 3.2% for the full year to 724.4 million Euros and
1% in Q4, as the margin declined in the year to 41.7% from 43.1% in 2006. On the
revenue side, the margin decline is due to the lower interconnection and roaming
revenues resulting from regulatory changes. On the cost side, EBITDA has been
adversely affected by one-off charges of approximately 10 million Euros during
the year. Adjusting for those, the annual EBITDA margin would have reached
42.3%. In addition, the record number of gross customer additions during 2007,
and especially in Q4, up by 44% compared to Q4 06, led to a relatively lower 38%
rise in distribution expenses, while the corresponding revenue contribution is
expected to come in future periods. Notably, in the quarter, G&A costs were
reduced by 8.4%.

COSMOTE Greece Net Earnings for the full year amounted to € 339.2million and
€80.7million for the fourth quarter. The factors affecting EBITDA outlined above
have also limited net income growth to 4.7% for Q4. Net income has also been
influenced by the increased financial expenses compared to 2006 leading to the
1.6% decline in reported net income for the full year.

                             FY-06         Q1-07         H1-07         9M-07         FY-07
AMOU, blended (min)           153           153           163           169           170
ARPU, blended (€)            29.9          26.6          27.2          27.9          27.2
Total Customer base        5,217,927     5,428,925     5,683,633     5,939,366     6,268,627

Blended AMOU in the twelve months increased by c. 12% to 170 minutes compared to
2006, sustaining the trend of previous quarters, driven mainly by pre-paid AMOU,
given the elasticity response, following significant tariff reductions during
this period in certain categories of this segment. Post paid AMOU for the period
increased by approximately 6%.

Blended ARPU for 2007, at €27.2 declined by c. 9% compared to a year ago, a
similar decline as in previous quarters. Given the declines evidenced by
competition, COSMOTE's ARPU has shown significantly more resilience. As a
result, COSMOTE's ARPU trends have, for the first time, exceeded those of the
competition during Q4 2007. Continuing existing trends, the post paid ARPU
decline was limited, while outgoing post paid ARPU was higher than a year ago.
The ARPU decline is therefore related primarily to a decline in prepaid ARPU,
due to the fast customer base growth and  a reduction in the incoming ARPU,
which in turn resulted from the lower termination rates.

2.2 ALBANIA - AMC: Ongoing strong performance

AMC during Q4 captured 59,736 net new additions bringing its total customer base
at the end of the year to c. 1.2 million, a 20.7% increase compared to 2006 and
continued its strong revenue and EBITDA growth path.

Summary Financial Results for AMC for the 3 & 12 months ended December 31st,
2007 & 2006

(Amounts in mil. €,audited)      Q4-07         Q4-06          A         FY-07       FY-06         A
Revenues                         46.1          40.9         12.8%       176.2       151.0       16.7%
EBITDA                           27.7          25.5         8.7%        109.3       91.0        20.1%
EBITDA margin                    60.1%         62.3%       -2.2pp       62.0%       60.3%      +1.7pp
Net Income                       14.7          13.9         5.7%        60.9        49.9        22.1%
Net Income margin                31.8%         33.9%       -2.1pp       34.6%       33.0%      +1.6pp

AMC's revenues for the full year were 16.7% higher than a year ago, as a result
of the significant expansion of its customer base and a 22.2% increase in
traffic compared to 2006, which during all quarters was mainly by contract
customers. Continuing on the trends of previous quarters, post paid outgoing
voice revenue increased by almost 50% for the 12 months and approximately 42% in
Q4. AMC's EBITDA grew by 20.1% in 2007 on a 62.0% margin, as a result of cost
containment, mainly in interconnection, as well as the positive take up of new
SMS offers, VAS, the positive elasticity on international pricing and c. 60k net
adds in the quarter. Net income increased by 22.1% for the full year and 5.7% in
Q4 with the net income margin at 34.6% for the full year.

                          FY-06       Q1-07        H1-07        9M-07        FY-07
AMOU, blended (min)        60           58           58           60           59
ARPU, blended (€)          15           14           14           14           14
Total Customer base      990,279    1,024,492    1,090,939    1,135,447    1,195,183

Blended AMOU for the period reached 59 minutes, while blended ARPU for the same
period remained stable at €14.

2.3 BULGARIA - GLOBUL:  Improvements on all fronts

During 2007 GLOBUL continued its strong revenue growth rate, at 20.4% while
posting a significant margin improvement of 230 bps compared to FY 2006 and
sustaining its market share in a highly competitive market environment and
despite very strong post paid customer intake.

GLOBUL captured again a significant share of post paid market net additions,
increasing its post paid customer base by c.46% compared to FY 2006, to a large
extent by incentivising pre-to-post migration. Total net additions for the
quarter amounted to 215,672 bringing GLOBUL's total customer base at the end of
the year at c.3.9 million, an 18.4% increase y-o-y.

Summary Financial Results for GLOBUL for the 3 & 12 months ended December 31st,
2007 & 2006

(Amounts in mil. €, audited)     Q4-07         Q4-06          A         FY-07       FY-06         A
Revenues                         110.9         93.3         18.9%       412.1       342.3       20.4%
EBITDA                           43.8          34.3         27.5%       161.7       126.3       28.0%
EBITDA margin                    39.5%         36.8%       +2.7pp       39.2%       36.9%      +2.3pp
Net Income                       13.8           6.0        130.4%       53.2        32.4        63.9%
Net Income margin                12.4%         6.4%        +6.0pp       12.9%       9.5%       +3.4pp

Revenues increased by 18.9% in Q4 and by 20.4% to € 412.1 million for the full
year, driven yet again by increased traffic, which is mainly the result of the
post paid segment usage increase, up by almost 80% for the full year, leading to
c.28% outgoing  post paid voice revenue growth. Core service revenues for 2007
(monthly fees, airtime, SMS & data) were up by 21.7%, reflecting usage patterns
and the significant customer mix improvement in recent quarters (monthly fees up
by 23% y-o-y).

GLOBUL's EBITDA increased by 28% y-o-y amounting to 161.7 million Euros for the
full year while the EBITDA margin for 2007 reached 39.2%, up by 230 bps compared
to 2006, an improvement achieved during a period of strong post paid subscriber
additions. The focus on cost containment and ongoing tight control of several
cost items, including network and marketing expenses, continue to have a
positive impact in margin enhancement.

Net income increased by 63.9% y-o-y compared to FY 2006, positively affected by
the reduction in the corporate tax rate.

                          FY-06        Q1-07        H1-07        9M-07        FY-07
AMOU, blended (min)         71           83           88           92           97
ARPU, blended (€)           10           9            10           10           10
Total Customer base     3,270,878    3,401,862    3,573,172    3,657,250    3,872,922

GLOBUL's blended AMOU for 2007 reached 97 minutes, up by c.37% y-o-y, as a
result of the increasing share of post paid customers in its subscriber base and
several other commercial initiatives driving usage. Blended ARPU remained stable
at 10 Euros.

2.4 FYROM - COSMOFON: Turning net income positive

COSMOFON for the first time since it launched operations achieved positive net
income profitability on a full year basis and continued to show steady
improvement of its operating profitability. While the competitive environment
intensified during Q4 with the launch of a 3rd operator at the end of September,
COSMOFON added a total of 52,165 net new additions during the quarter, reaching
a total customer base of 593,026 at the end of the year, a 25.5% increase
compared to 2006. Notably, through GERMANOS, COSMOFON managed to improve
significantly its customer mix, with contract customers rising from c.14% of the
total customer base at the end of 2006 to c.18% at the end of 2007.

Summary Financial Results for COSMOFON for the 3 & 12 months ended December
31st, 2007 & 2006

(Amounts in mil.              Q4-07        Q4-06          A          FY-07        FY-06          A
Revenues                       15.8         14.2        11.2%         62.2         53.7        15.8%
EBITDA                         5.0          1.4         257.9%        19.3         9.3         107.1%
EBITDA margin                 31.6%         9.8%       +21.8pp       31.0%        17.3%       +13.7pp
Net Income                     0.9          -3.3        127.3%        0.1          -8.0        100.8%
Net Income margin              5.7%         n/a          n/a          0.1%         n/a          n/a

Revenues increased by 15.8% in 2007 to 62.2 million Euros. Revenue growth is the
result of increasing outgoing voice revenues on the post paid side (+34% for the
full year) and the increase in the post paid subscriber base (+c.65% y-o-y), as
indicated in the increase in revenues from monthly fees, up by c.47.6% for the
full year. Total outgoing voice revenues increased by 23% y-o-y for the twelve

The post paid customer base expansion is reflected in the blended ARPU, stable
at 10 Euro, despite the significant increase in the total customer base while
blended AMOU increased by c. 48.5% for the twelve months compared to the same
period last year.

COSMOFON is steadily improving its profitability, with the EBITDA margin
reaching 31% in 2007. The improvement is the result of both scale and the
ongoing containment of specific cost items such as network. COSMOFON reported a
positive net income of 0.1 million Euros for the first time on a full year

                        FY-06      Q1-07      H1-07      9M-07      FY-07
AMOU, blended (min)       57         73         81         85         85
ARPU, blended (€)         10         10         10         11         10
Total Customer base    472,501    497,637    515,785    540,861    593,026

2.5 ROMANIA - COSMOTE ROMANIA: Accelerating momentum

COSMOTE Romania is continuing its impressive performance capturing over half of
the total market's net additions in Q4, with almost 800k net subscribers and
reaching a total of  over 3.6 million customers at the end of the year, an
estimated 16% market share, in just 2 years of commercial operations.

Significantly, over 23% of total net additions during the quarter were post paid
customers, building on the trend first observed during Q3, with COSMOTE Romania
expanding its post paid customer base by 41% on sequential quarters. This
significant improvement compared to the performance so far, attests  that the
commercial policies introduced in late Q2 are paying off but also that the
company's competitive edge in distribution is instrumental in maintaining its
strong momentum and accelerating its significant inroads in the post paid
segment, now that the telecom network has reached competitive quality.

COSMOTE Romania, having reached today over 98.2% population and 87.5%
geographical coverage, achieving parity with the competition in only 2 years,
and network quality which is often exceeding the competition, invested heavily
during 2007 to achieve these goals and to expand its capacity, given the strong
subscriber numbers. This has necessitated an increase in capital expenditure
requirements in 2007, which reached c. 201 million Euros at the end of 2007.

Summary Financial Results for COSMOTE Romania for the 3 & 12 months ended
December 31st, 2007 & 2006

(Amounts in mil. €,           Q4-07        Q4-06          A          FY-07        FY-06          A
Revenues                       50.4         17.2        192.6%       155.6         43.8        255.5%
EBITDA                        -11.8        -19.4        39.1%        -39.2        -65.7        40.4%
Net Income                    -53.2        -25.4       -109.0%       -118.4       -91.6        -29.2%

Revenues for Q4 07 reached 50.4 million Euro compared to 17.2 million in Q4 06
and amounted to 155.6 million for the full year compared to 43.8 million a year
ago. Reported blended ARPU for the full year was 5.6 Euros, continuing to be
affected by the ongoing fast subscriber growth and the aggressive pre paid
commercial policies. It is estimated however, since Q3 07, that the ARPU of
residential post paid subscribers is already reaching similar levels to that of
the competition's new additions.

As the company's penetration of the post paid segment is growing further, EBITDA
losses for Q4 were slightly higher than Q3, at 11.8 million Euro, due to a
significantly higher number of post paid additions in Q4 - notably mostly on 24
month contracts - resulting to a total of 39.2 million Euro for the full year.
The successful initial penetration of this segment along with ongoing
significant expansion of its customer base during the second half of 2007 has
limited the opportunity to show a significant EBITDA improvement in 2007. The
customer acquisition strategy however is expected to payback in 2008, leading to
the positive EBITDA target of the company on an enlarged revenue base.

Net Income in Romania for 2007 reached -118.4 million, negatively affected by
two sequential quarters of the local currency depreciation, which resulted to an
approximately further c.27.6  million non cash FX losses during Q4, from c.19
million losses in Q3 versus c. 16 million gain in Q2. The bulk of this is
generated due to the company's Euro denominated debt liabilities to COSMOTE
Greece. In addition, COSMOTE Romania's high investments are continuing to lead
to higher depreciation.

                          FY-06       Q1-07       H1-07        9M-07        FY-07
ARPU, blended (€)          5.0         5.8         6.2          6.0          5.6
Total Customer base     1,225,603   1,859,023   2,216,465    2,818,059    3,616,274

2.6 GERMANOS: Exceptional operating performance

GERMANOS is the main driver of the group's subscriber expansion in all markets,
resulting in market share gains especially in the post paid segment, qualitative
improvements in the customer base, leading ultimately to the Group's strong
revenue growth. Overall, during 2007, GERMANOS contributed c. 2.4 million net
subscribers to the Group from 1.2 million during 2006.

GERMANOS's ability to increase its customer base despite changing its operating
model to being an exclusive COSMOTE distributor for mobile telephony has been
critical to the market share expansion in Romania, Bulgaria and Greece. It is
notable that in Greece, since the acquisition of GERMANOS, COSMOTE has
maintained the lead in mobile customer additions, both in the post and pre-paid
segments, setting new records every quarter and capturing 49% of the total
market net additions during the year, of which GERMANOS has contributed c.87%.

Compared to Q4 2006, the first quarter of consolidation, in Q4 2007, net post
paid customers through GERMANOS in Greece have increased by 64.4% and in Romania
by 144.2%. This success highlights GERMANOS's pivotal role in driving the post
paid market share gains in Greece and the significant inroads achieved in the
post paid section in Romania. Overall, compared to 2006, GERMANOS has increased
total net post paid additions to the Group by 112%, and significantly in all
markets of common operation: by 84% in Greece, 256% in Romania, 55% in Bulgaria
and 35% in FYROM.

Store visitability has increased in all countries of operation: +8% in Greece,
+34% in Bulgaria, +31% in Romania and +32% in FYROM.

In terms of the stand-alone financial performance, GERMANOS reported 992.6
million Euro revenues and EBITDA of 31.7 million, resulting in an EBITDA margin
of 3.2% for the full year. Increasingly, the main contribution of GERMANOS to
COSMOTE Group is through the rising subscriber numbers which drive revenue and
profit growth in the mobile operating units. More than a year since the
acquisition, GERMANOS' operating results have exceeded initial targets.

During the year GERMANOS expanded its own branded stores from a total of 610 at
the end of 2006 to 769 stores at the end of 2007.

Summary Financial Data for GERMANOS GROUP for the 3 & 12 months ended December
31st, 2007

(Amounts in mil. €, audited)                 Q4-07               FY-07
Revenues                                     304.3               992.6
EBITDA                                        7.5                31.7
EBITDA margin                                2.5%                3.2%
Net Income                                    2.7                14.2
Net Income margin                            0.9%                1.4%

COSMOTE Group Deputy CEO Michael Tsamaz noted: "In 2007, the operating
performance of all our units has been excellent, with market share gains
providing tangible proof of our competitive strengths, while setting the
foundations for future growth. To maintain these strong positions and continue
improving our financial performance in the future, we are planning new
initiatives on all fronts and in all markets. Closer cooperation with the OTE
Group will generate both revenue and cost synergies in coming quarters."

COSMOTE Group Chairman & CEO Panagis Vourloumis added:  "The competitive
environment in which COSMOTE operates is becoming increasingly challenging, not
only in Greece but in all our markets. Existing distinctions between providers
of telecommunications services are becoming increasingly blurred as powerful
international groups offer solutions straddling traditional boundaries. It is in
this context that we have decided to strengthen the cohesion and integration of
the OTE Group through a buy-out of COSMOTE minority shareholders.  The success
of this transaction enables us to build an even stronger organisation and to
consolidate the Group's positions in South East Europe."


Investor Relations &                                                                 Media Relations -
Strategic Development Dept.                                                    Corporate Affairs Dept.
Tel. + 30 - 210 - 6177 428                                                   Tel. +30 - 210 - 6177 566
Fax. +30 - 210 - 6177 377                                                    Fax. +30 - 210 - 6177 771
e-mail:                                                e-mail:


Note on Forward-looking Statements:

Some of the statements in this document are "forward-looking statements".
Forward-looking statements are derived from information that we currently have
and assumptions that we make.  Words such as "believes", "anticipates",
"targets", "expects", "intends", "seeks", "will", "plans", "could", "may",
"projects" and similar expressions are intended to identify forward-looking
statements but are not the exclusive means of identifying such statements.  We
cannot assure that anticipated results will be achieved, since results may
differ materially because of both known and unknown risks and uncertainties
which we face. Save as required by law or regulation, we undertake no obligation
to publicly update or revise any forward-looking statements, whether as a result
of new information, future events, different anticipations or otherwise.

Factors that could cause actual results to differ materially from our
forward-looking statements include, but are not limited to, the following:

•    the effects of domestic and foreign economic and political conditions, and
     conditions which affect the market for electronic communications services;

•    changes in the laws, rules and regulations which apply to our company and
     its affiliates, including changes to permitted tariffs;

•    the effects of competition from other providers of electronic communications

•    risks that we face in entering new markets and diversifying the products and
     services we offer;

•    unexpected turnover of professional staff;

•    changing trends and inherent uncertainties in the electronic communications

•    the ability to attain adequate prices, obtain new business and to retain
     existing business consistent with our expectations;

•    the level of demand for our services;

•    the ability to reduce costs;

•    the timely development and acceptance of new products and services;

•    the effect of technological changes in communications and information
     technology; and

•    the managing the foregoing and related risks.

In light of these risks, uncertainties and assumptions, the forward-looking
events in this document might not occur.  You are cautioned not to place undue
reliance on any forward-looking statements, which speak only as of their
respective dates.


(1) Audited.

(2) Data revenues amount to € 167.1 million (of which € 116.1 million from SMS)

                      This information is provided by RNS
            The company news service from the London Stock Exchange

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