ECONOMY

OTE sees tougher times after Q2 profit jump

Greece’s OTE, the biggest telecoms company in southeast Europe, expects the economic downturn in its home market to impact its second-half performance after cost-cutting drove a 68 percent jump in second-quarter profit.

“For the second half of the year, we do not foresee any material improvement in the operating environment of the markets in which the group operates,» chief executive Michael Tsamaz, appointed by 40-percent-owner Deutsche Telekom to cut costs, said on Thursday.

“The challenging economic conditions in Greece…will adversely impact our financial performance,» he said.

The former Greek monopoly has been bleeding clients as austerity-hit customers in Greece and Romania, its two biggest markets, switch to cheaper rivals.

OTE said on Thursday second-quarter net profit jumped to 104.5 million euros, helped by cost cutting.

Sales dropped 5.2 percent to 1.19 billion euros and earnings before interest, tax, depreciation and amortisation (EBITDA) gained 5 percent to 416.7 million euros.

OTE shares were up 2.4 percent at 0740 GMT.

[Reuters]