ECONOMY

Greek telecom OTE posts drop in Q3 profit

greek-telecom-ote-posts-drop-in-q3-profit

Greece’s biggest telecoms operator OTE on Thursday posted a 5.7 percent drop in third-quarter core profit and warned higher taxes would hurt its domestic business.

OTE, which is 40 percent-owned and managed by Germany’s Deutsche Telekom, said those taxes were expected to hurt demand for its services.

“Greek performance could be impacted by growing tax demands, and hence a possible decline in disposable income, on consumers and businesses,” it said in a statement.

Earnings before interest, tax, depreciation and amortization (EBITDA) dropped to 350.1 million euros in the third quarter from 371.1 million in the same period last year.

Lower revenues from domestic mobile business and tough competition in Romania took a toll on the company’s profits.

[Reuters]