HELLENIC TELECOMMUNICATIONS ORGANIZATION S.A. Greece:
o Fixed: Positive quarter across the board, Revenues up 1.8% on strong broadband uptake fueled by VDSL, further TV growth and resilient Voice o Mobile: Service Revenues up sharply, +4.6% in Q4'17, on higher Data revenues and visitor roaming; Adj. EBITDA impacted by one-offso Adj. EBITDA margin up 130 bps in Q4'17, 70 bps in FY§ Early encouraging indicators in Albania and Romania RevenuesOTE GROUP (€ mn) | Q4 '17 | Q4 '16 | Change | 12M '17 | 12M '16 | Change |
Revenues | 998.1 | 1,027.0 | -2.8% | 3,857.1 | 3,908.1 | -1.3% |
Adjusted EBITDA | 337.2 | 343.7 | -1.9% | 1,303.9 | 1,320.9 | -1.3% |
Adj. EBITDA margin (%) | 33.8% | 33.5% | +0.3pp | 33.8% | 33.8% | 0pp |
Operating profit/(loss) before financial and investing activities | (29.9) | 70.0 | -142.7% | 305.5 | 385.6 | -20.8% |
Profit/(loss) to owners of the parent | (52.7) | 16.6 | - | 67.2 | 140.0 | -52.0% |
Adj. Profit to owners of the parent | 37.1 | 51.7 | -28.2% | 192.7 | 201.5 | -4.4% |
| Basic EPS (€) | (0.1078) | 0.0340 | - | 0.1375 | 0.2864 | -52.0% |
Total Assets | 7,102.2 | 7,571.6 | -6.2% | 7,102.2 | 7,571.6 | -6.2% |
Adj. Net Operating Cash Flow | 307.9 | 423.8 | -27.3% | 902.6 | 1,085.6 | -16.9% |
Adjusted CapEx | 213.3 | 140.5 | +51.8% | 797.5 | 627.0 | +27.2% |
Adjusted Free Cash Flow | 94.6 | 283.3 | -66.6% | 105.1 | 458.6 | -77.1% |
| Cash & Other financial assets | 1,303.6 | 1,591.2 | -18.1% | 1,303.6 | 1,591.2 | -18.1% |
Adjusted Net Debt | 737.1 | 533.9 | +38.1% | 737.1 | 533.9 | +38.1% |
Note: The purpose and calculations of all 'Adjusted' data presented in this report are detailed in the Alternative Performance Measures Section
ATHENS, Greece - February 22, 2018 - Hellenic Telecommunications Organization SA
(ASE: HTO; OTC MARKET: HLTOY), the Greek full-service telecommunications provider, announced today audited consolidated results (prepared under IFRS) for the quarter ended December 31, 2017.
Commenting on OTE's 2017 fourth-quarter and full-year results, Michael Tsamaz, Chairman & CEO, noted: "2017 was a solid year for the OTE Group, marked by investments to drive future growth. In Greece, we are reaping the fruits of our substantial investments in our networks, systems and content, and of our focus on customer experience. In the fourth quarter, we achieved solid top-line performances in our fixed and mobile operations, offset by lower international wholesale. Our investment in fiber is paying off, with record VDSL additions in the quarter, and our TV subscriber base is continuing to grow. The ongoing expansion of our next-generation networks and improved broadband experience are addressing the ever increasing demand for high-speed internet. Our Greek mobile business posted a sharp improvement in service revenues, supported by the state-of-the-art data infrastructure we have deployed. In our international operations, we are starting to see early signs of stabilization, even though profitability has not yet recovered. We are confident that our peak investments in 2017 will help a resurgent Greece gradually reach its full potential, businesses become more productive and competitive, and improve people's lives."Mr. Tsamaz added: "A few weeks ago, we unveiled a new shareholder remuneration policy, designed to reward shareholders whose support has enabled OTE to strengthen its positions and accompany the recovery in its markets. As capital investments gradually return to more normal levels and we restore our cash flow generation capacity, all our shareholders will fully benefit from our recovery."
Outlook
OTE expects overall positive revenue trends to continue in the current year. The recovering economic environment in Greece should provide a favorable background to its activities in fixed and mobile telecommunications, with growth in mobile data, broadband and pay-TV offerings expected to continue. The extended reach of advanced data networks, in both fixed and mobile, drives increased customer reliance on OTE services, supporting its revenue base. While operational progress in Romania is encouraging, the outlook is stable. In Albania, provided the regulatory environment remains unchanged, the improving market structure is likely to enable a continuing performance recovery. The Group will implement further cost-saving initiatives to improve the profitability of all its operations.
Following a year of accelerated capital investment in networks to support its future growth, OTE's Capex is expected to gradually return to normalized levels. In 2018, management expects adjusted Capex of approximately €700mn. Reflecting further cash generation improvements, OTE expects 2018 full-year adjusted FCF of approximately €350mn. Our reported FCF will reach approximately €260mn, which will be fully paid out to shareholders according to the recently announced shareholders remuneration policy.
OTE GROUP HIGHLIGHTS |
In Q4'17, OTE Group revenues dropped 2.8% to €998.1mn, as higher revenues in Greek fixed and mobile operations as well as in Romanian mobile were offset by a drop in revenues from Romanian fixed and, to a larger extent, by a €47mn decline in revenues from the "All Other" segment. This drop is due to the completion of the Rural Broadband project in Greece and to lower international transit traffic (OTE Globe), two revenue streams with rather low EBITDA margin and minimal impact on Group profitability. In the full year, revenues totaled €3,857.1mn, a drop of 1.3%.
In Greece, revenues were down 3.9% to €717.3mn in Q4'17, as higher revenues from fixed and mobile operations, were offset by lower revenues from OTE Globe and the completion of the construction phase of the Rural Broadband project. Revenues from Retail Fixed Services were up in the quarter and full year, as growth in Broadband and TV services more than offset the narrowing decline in Voice revenues. Mobile revenue growth reflects higher revenues from data and visitor roaming, propelling a sharp acceleration in Service Revenue growth, which ended 2017 positive after several years of annual decrease. OTE enhanced its position as the leading digital service provider in Greece, further advancing an arsenal of digital tools to increase speed and efficiency in its relationships with customers, partners and employees.The rapid take up of the Cosmote mobile app and a number of other related digitization initiatives are key in supporting this drive.In Romania, total revenues increased by 0.1%, reflecting higher revenue from mobile operations, more than offsetting a decline in fixed. The increase in mobile reflects the successful campaign of the new postpaid bundles under the #netliberare offerings as well as boosted sales of handsets.
Revenues in Albania remained stable, with increasing focus on retail service revenue.
Total Operating Expenses, excluding depreciation, amortization, impairment and charges related to voluntary leave schemes, other restructuring costs and non-recurring litigations, amounted to €677.3mn in Q4'17, a drop of 5.0% compared to Q4'16. The decrease is largely due to international transit expenses and the completion of the construction phase of the Rural Broadband project in Greece and Romania (Ronet), consistent with the corresponding decline in revenues.
In Q4'17, the Group's adjusted EBITDA was down 1.9% to €337.2m. In Greece, adjusted EBITDA dropped 0.6%, yielding an adjusted EBITDA margin of 40.8%, up 130 basis points from Q4'16. In Romania adjusted EBITDA dropped 11.3% and in Albania, it rose 13.3%.
The Group reported Operating loss before financial and investing activitiesof €29.9mn, as compared to €70.0mn profit in Q4 last year. The drop reflects impairments in the Group's international operations, totaling €134mn.
The Group's Income Tax charge stood at €26.7mn in Q4'17, down 38.9%, reflecting the recognition of losses carried forward and current losses in Greek mobile.
Adjusted Group profit after minority interests (excluding one-off items) stood at €37.1mn in Q4'17, as compared to €51.7mn in Q4'16.
Adjusted Capital Expenditures amounted to €213.3mn in Q4'17, an increase of 51.8%, mainly reflecting investments in Fixed-line operations in Greece at €109.6mn. Capital investments in Romanian Fixed-line operations amounted to €37.2mn. In Mobile operations, Capex in Greece stood at €45.4mn, in Romania at €5.9mn, and in Albania at €4.1mn.
In Q4'17, the Group's adjusted Free Cash Flow stood at €94.6mn, as compared to €283.3mn in Q4'16, primarily reflecting the increase in Capital Expenditures as well as higher taxes paid.
The Group's adjusted Net Debt was €0.7bn at December 31, 2017, an increase of 38.1% compared to December 31, 2016. The Group's ratio of adjusted Net Debt to adjusted EBITDA stood at 0.6x.
BREAKDOWN OF GROUP REVENUES
(€ mn) | Q4 '17 | Q4 '16 | Change | 12M '17 | 12M '16 | Change | |
Fixed Line Operations, Greece | 409.5 | 402.4 | +1.8% | 1,583.8 | 1,568.5 | +1.0% | |
Mobile Operations, Greece | 313.3 | 306.8 | +2.1% | 1,202.3 | 1,194.2 | +0.7% | |
Fixed Line Operations, Romania | 160.3 | 166.8 | -3.9% | 607.7 | 602.5 | +0.9% | |
Mobile Operations, Romania | 139.5 | 121.9 | +14.4% | 464.9 | 457.1 | +1.7% | |
Mobile Operations, Albania | 17.2 | 17.2 | +0.0% | 68.1 | 77.2 | -11.8% | |
All Other | 99.9 | 146.5 | -31.8% | 451.6 | 489.7 | -7.8% | |
Eliminations (Mobile & Group) | (141.6) | (134.6) | +5.2% | (521.3) | (481.1) | +8.4% | |
TOTAL | 998.1 | 1,027.0 | -2.8% | 3,857.1 | 3,908.1 | -1.3% | |
Other Operating Income | 16.4 | 29.5 | -44.4% | 51.4 | 55.2 | -6.9% | |
BREAKDOWN OF GROUP ADJUSTED EBITDA
(€ mn) | Q4 '17 | Q4 '16 | Change | 12M '17 | 12M '16 | Change | |||
Fixed Line Operations, Greece | 180.5 | 169.6 | +6.4% | 677.6 | 663.6 | +2.1% | |||
Margin | 44.1% | 42.1% | +2pp | 42.8% | 42.3% | +0.5pp | |||
Mobile Operations, Greece | 94.4 | 100.0 | -5.6% | 404.0 | 403.0 | +0.2% | |||
Margin | 30.1% | 32.6% | -2.5pp | 33.6% | 33.7% | -0.1pp | |||
Fixed Line Operations, Romania | 26.1 | 28.3 | -7.8% | 101.9 | 93.5 | +9.0% | |||
Margin | 16.3% | 17.0% | -0.7pp | 16.8% | 15.5% | +1.3pp | |||
Mobile Operations, Romania | 14.7 | 17.7 | -16.9% | 58.2 | 81.7 | -28.8% | |||
Margin | 10.5% | 14.5% | -4pp | 12.5% | 17.9% | -5.4pp | |||
Mobile Operations, Albania | 3.4 | 3.0 | +13.3% | 8.8 | 16.1 | -45.3% | |||
Margin | 19.8% | 17.4% | +2.4pp | 12.9% | 20.9% | -8pp | |||
All Other | 21.3 | 28.4 | -25.0% | 58.4 | 69.5 | -16.0% | |||
Margin | 21.3% | 19.4% | +1.9pp | 12.9% | 14.2% | -1.3pp | |||
Eliminations (Mobile & Group) | (3.2) | (3.3) | -3.0% | (5.0) | (6.5) | -23.1% | |||
OTE Group | 337.2 | 343.7 | -1.9% | 1,303.9 | 1,320.9 | -1.3% | |||
Margin | 33.8% | 33.5% | +0.3pp | 33.8% | 33.8% | 0pp | |||
CONTRIBUTION PER COUNTRY (After Eliminations)
GREECE |
Revenues (€ mn) | Q4 '17 | Q4 '16 | Change | 12M '17 | 12M '16 | Change | |
Greece | 717.3 | 746.7 | -3.9% | 2,826.2 | 2,862.7 | -1.3% | |
Romania | 266.2 | 266.0 | +0.1% | 970.7 | 982.8 | -1.2% | |
| Albania | 14.6 | 14.3 | +2.1% | 60.2 | 62.6 | -3.8% | |
OTE Group | 998.1 | 1,027.0 | -2.8% | 3,857.1 | 3,908.1 | -1.3% | |
Adjusted EBITDA (€ mn) | Q4 '17 | Q4 '16 | Change | 12M '17 | 12M '16 | Change | |
Greece | 293.0 | 294.7 | -0.6% | 1,135.0 | 1,129.6 | +0.5% | |
margin | 40.8% | 39.5% | +1.3pp | 40.2% | 39.5% | +0.7pp | |
Romania | 40.8 | 46.0 | -11.3% | 160.1 | 175.2 | -8.6% | |
margin | 15.3% | 17.3% | -2pp | 16.5% | 17.8% | -1.3pp | |
| Albania | 3.4 | 3.0 | +13.3% | 8.8 | 16.1 | -45.3% | |
margin | 23.3% | 21.0% | +2.3pp | 14.6% | 25.7% | -11.1pp | |
OTE Group | 337.2 | 343.7 | -1.9% | 1,303.9 | 1,320.9 | -1.3% | |
margin | 33.8% | 33.5% | +0.3pp | 33.8% | 33.8% | +0pp | |
OTE's total revenues in Greece were down 3.9%, as solid revenue increases in fixed and mobile activities were more than offset by lower international wholesale revenues. The decline in wholesale revenues is primarily due to the drop in international transit traffic, as well as to lower LLU pricing, a factor that is likely to continue in 2018.
Overall, adjusted EBITDA recorded a minor decrease of €1.7mn in Q4'17. In Q4'16, adjusted EBITDA in Greece included a €9mn benefit from real estate disposals. Excluding this factor, adjusted EBITDA in Greece was up.
In full year 2017, total revenues in Greece were down 1.3%, and adjusted EBITDA was up 0.5%, yielding a 70 basis point improvement in margin to 40.2%.
Fixed-Line Operations, Greece
Access Lines | December 2017 | September 2017 | December 2016 | y-o-y Change | |
PSTN connections | 1,250,317 | 1,345,049 | 1,790,900 | -30.2% | |
ISDN connections (BRA & PRA) | 234,613 | 240,695 | 266,931 | -12.1% | |
Other (MSAN & VoBB) | 1,162,883 | 1,051,768 | 610,055 | +90.6% | |
Access line connections (incl. WLR) | 2,647,813 | 2,637,512 | 2,667,886 | -0.8% | |
Retail access line connections | 2,639,132 | 2,628,750 | 2,657,924 | -0.7% | |
Active Broadband retail subscribers | 1,759,752 | 1,716,188 | 1,635,736 | +7.6% | |
of which: Retail VDSL connections | 354,257 | 311,107 | 219,166 | +61.6% | |
COSMOTE TV Subscribers | 524,770 | 517,155 | 502,696 | +4.4% | |
Unbundled local loops (active) | 2,110,806 | 2,105,006 | 2,085,248 | +1.2% | |
In Q4'17, the total Greek access market added 17k lines, while OTE's fixed-line operations achieved positive net additions of 10k access lines.
OTE posted another quarter of strong net additions in retail broadband customers, totaling 44k, reaching 1,760k. Penetration of OTE's high-speed VDSL broadband service continued to expand, with record net additions of 43k in the quarter, supported by the expanding reach of the service. At quarter end, OTE's VDSL offer had been adopted by 354k subscribers, or 20.1% of OTE's total retail broadband base, up from 18.1% at the end of Q3'17. Demand for broadband among OTE's customer base remains strong, as penetration lags the market as a whole. OTE is successfully converting a growing number of customers to its high-speed broadband offering, highlighting the market's appetite for these services and supporting its investment in FTTC. In December, OTE launched its premium Vectoring service offering broadband speeds of up to 200Mbps, addressing the ever increasing demand for bandwidth. From the total number of cabinets allocated to OTE for VDSL/Vectoring upgrade last February, the Company had activated approximately 88% as of the end of the year, with the remaining currently being readied for commercialization. A further 4k cabinets are expected to be installed this year.
OTE achieved another quarter of growth in its TV offering, with net additions of 8k. At December 31, 2017, the total number of OTE TV subscribers was 525k, a year-on-year increase of 4.4%
SUMMARY FINANCIAL DATA - FIXED-LINE OPERATIONS, GREECE
(€ mn) | Q4 '17 | Q4 '16 | Change | 12M '17 | 12M '16 | Change |
Revenues | 409.5 | 402.4 | +1.8% | 1,583.8 | 1,568.5 | +1.0% |
| - Retail Fixed Services |
228.5 | 225.9 | +1.2% | 904.6 | 898.0 | +0.7% |
| - Wholesale Fixed Services |
90.3 | 87.4 | +3.3% | 347.7 | 344.4 | +1.0% |
| - Other |
Greek fixed-line operations posted year-over-year revenue growth of 1.8% in Q4'17. Revenues from retail fixed services rose 1.2%, supported by continued solid performances in broadband and pay-TV, as well as a slowdown in the decline of voice revenues in the quarter.
90.7 | 89.1 | +1.8% | 331.5 | 326.1 | +1.7% | |
Other operating income | 3.8 | 3.8 | +0.0% | 8.1 | 8.2 | -1.2% |
Adj. EBITDA | 180.5 | 169.6 | +6.4% | 677.6 | 663.6 | +2.1% |
Adj. EBITDA margin (%) | 44.1% | 42.1% | +2pp | 42.8% | 42.3% | +0.5pp |
Voluntary leave schemes | (7.3) | (3.3) | +121.2% | (27.7) | (35.8) | -22.6% |
Depreciation, Amortization & Impairment | (88.6) | (76.9) | +15.2% | (324.9) | (306.4) | +6.0% |
Operating profit before financial and investing activities | 84.6 | 89.4 | -5.4% | 320.8 | 321.4 | -0.2% |
Total Greek fixed-line Operating Expenses, excluding depreciation, amortization, impairment and charges related to voluntary leave schemes, other restructuring costs and non-recurring litigations,amounted to €232.8mnin Q4'17, down 1.6% compared to Q4'16, mainly due to lower personnel costs, positively affected by the VES programs of 2017.
Adjusted EBITDA rose 6.4% to €180.5mnin Q4'17, primarily reflecting revenue growth and cost-reduction initiatives. As a result, adjusted EBITDA margin in Greek fixed-line operations increased by 200 basis points to 44.1% compared to Q4'16.
MOBILE OPERATIONS, GREECE
December 2017 | December 2016 | Change | |||
Mobile Subscribers | 7,981,236 | 7,724,812 | +3.3% |
(€ mn) | Q4 '17 | Q4 '16 | Change | 12M '17 | 12M '16 | Change |
Service Revenues | 240.1 | 229.5 | +4.6% | 957.5 | 943.9 | +1.4% |
Total Revenues | 313.3 | 306.8 | +2.1% | 1,202.3 | 1,194.2 | +0.7% |
Adjusted EBITDA | 94.4 | 100.0 | -5.6% | 404.0 | 403.0 | +0.2% |
Adj. EBITDA margin (%) | 30.1% | 32.6% | -2.5pp | 33.6% | 33.7% | -0.1pp |
As of December 31, 2017, COSMOTE provided mobile telephony services to 8.0mn customers in Greece, up 3.3% year on year. By contrast with previous years, a significant portion of this increase was driven by postpaid net additions, which for the year reached 66k, largely driven by M2M net additions, as well as active commercial initiatives offering attractive contract bundles on the one hand and successful product upselling on the other.
Total Mobile revenues increased by 2.1% in Q4'17, accentuating the rebound achieved in earlier quarters. Service revenues, totaling €240.1mn in the quarter, rose by 4.6%, their best performance in years, supported by another double-digit increase in mobile data revenues. Data consumption continues to grow, as customers use the successful "Giga Now" and "Break the Rules" data packages. Visitor roaming was another important contributor to revenue strength.
Data revenues rose by approximately 18% in the quarter, reaching 26% of service revenues, reflecting COSMOTE's extensive 4G and 4G+ footprints. The number of data users increased by 19% compared to the end of Q4'16, and now accounts for approximately half of all COSMOTE active mobile subscribers.
Total Greek Mobile Operating Expenses, excluding depreciation, amortization, impairment and charges related to voluntary leave schemes, other restructuring costs and non-recurring litigations,amounted to €220.2mnin Q4'17, up by 5.7% vs. Q4'16, negatively affected by interconnection and roaming expenses, provisions for slow moving items, and increased call center activity.
Adjusted EBITDA stood at €94.4mnin Q4'17, down by 5.6% vs. Q4'16, and the adjusted EBITDA margin dropped by 250 basis points, reflecting the temporary expense hike noted above.
In Q4'17, COSMOTE Greece's blended AMOU increased by 0.8% to 285 minutes. Blended ARPU for the same period was €10.8, an increase of 2.1% compared to Q4'16.
ROMANIA |
Total revenues from Group operations in Romania were up 0.1% to €266.2mn in Q4'17, reflecting solid performances from mobile and the Company's fixed-mobile convergent (FMC) solution, as well as higher wholesale revenues, offset by pressure on retail fixed services. New bundles under the #netliberare offerings boosted postpaid and FMC additions by over 50% in Q4. The new propositions offer affordable internet access to postpaid and prepaid subscribers, with certain options providing unlimited data to access streaming or social networking applications.
Combined adjusted EBITDA in Romania decreased 11.3% from €46.0mn to €40.8mn in the fourth quarter of 2017.
Fixed Line Operations, Romania
SUMMARY FINANCIAL & SUBSCRIBERS DATA
December 2017 | December 2016 | Change | |
Voice Telephony Lines* | 2,098,052 | 2,150,814 | -2.5% |
Broadband subscribers* | 1,180,192 | 1,185,797 | -0.5% |
TV subscribers | 1,470,341 | 1,464,283 | +0.4% |
FMC Customers | 504,046 | 370,524 | +36.0% |
*Including FMC
(€ mn) | Q4 '17 | Q4 '16 | Change | 12M '17 | 12M '16 | Change |
Revenues | 160.3 | 166.8 | -3.9% | 607.7 | 602.5 | +0.9% |
- Retail Fixed Services | 69.7 | 75.8 | -8.0% | 288.7 | 309.6 | -6.8% |
- Wholesale Fixed Services | 33.7 | 27.7 | +21.7% | 141.6 | 113.1 | +25.2% |
- Other | 56.9 | 63.3 | -10.1% | 177.4 | 179.8 | -1.3% |
Other operating income | 12.6 | 12.6 | +0.0% | 38.0 | 29.5 | +28.8% |
Adj. EBITDA | 26.1 | 28.3 | -7.8% | 101.9 | 93.5 | +9.0% |
Adj. EBITDA margin (%) | 16.3% | 17.0% | -0.7pp | 16.8% | 15.5% | +1.3pp |
Voluntary leave schemes | (2.6) | (0.5) | +420.0% | (15.3) | (6.0) | +155.0% |
Depreciation, Amortization & Impairment | (89.3) | (98.6) | -9.4% | (174.8) | (204.9) | -14.7% |
Operating profit before financial and investing activities | (67.1) | (70.8) | -5.2% | (89.5) | (117.4) | -23.8% |
Romania Fixed (Telekom Romania)
In Q4'17, revenues from Romanian fixed-line activities were down 3.9% from the prior-year level, primarily impacted by the downward trend in fixed voice revenues (-15%). In broadband and TV, revenues declined by nearly 5% and 2%, respectively. The total number of broadband subscribers shrank by 0.5% while TV subscribers increased 0.4%. The Company continues to feel pressure wherever it operates legacy broadband networks (xDSL), but is winning new subscribers in areas where fiber connections have been installed. Revenues from FMC increased by 38%, as the number of FMC subscribers rose 36% year on year to 504k at 2017 year end.
Total Operating Expenses, excluding depreciation, amortization, impairment and charges related to voluntary leave schemes, other restructuring costs and non-recurring litigations, decreased by 2.8% in Q4'17 compared to Q4'16. Higher customer-driven direct costs, notably higher interconnection and mobile handsets, were offset by lower indirect costs, chiefly construction expenses, rentals and utilities.
Q4'17 adjusted EBITDA declined by 7.8% compared to Q4'16. Conversely, on a full-year basis, 2017 adjusted EBITDA increased by 9.0%.
Romania Mobile
December 2017 | December 2016 | Change | |||||
Mobile Subscribers | 4,748,905 | 5,344,638 | -11.1% | ||||
(€ mn) | Q4 '17 | Q4 '16 | Change | 12M '17 | 12M '16 | Change |
Service Revenues | 83.5 | 73.8 | +13.1% | 303.7 | 304.2 | -0.2% |
Total Revenues | 139.5 | 121.9 | +14.4% | 464.9 | 457.1 | +1.7% |
Adjusted EBITDA | 14.7 | 17.7 | -16.9% | 58.2 | 81.7 | -28.8% |
Adj. EBITDA margin (%) | 10.5% | 14.5% | -4.0pp | 12.5% | 17.9% | -5.4pp |
At December 31, 2017, Telekom Romania Mobile's customer base totaled 4.7mn, down 11.1% from the year-earlier level, reflecting elimination of inactive prepaid cards, while the number of postpaid customers rose slightly year on year. As a result, the percentage of postpaid customers on the total base increased to 34.5%, compared to 30.5% a year ago.
Total revenues for the quarter stood at €139.5mn, up 14.4%, largely due to higher postpaid revenues and higher handset sales. Total service revenues were up 13.1% thanks to the successful campaign of the new postpaid bundles, as well as a rise in usage, reflected in higher AMOU by 13% and Data revenue by 37%.
In Q4'17, Total Operating Expenses, excluding depreciation, amortization, impairment and charges related to voluntary leave schemes, other restructuring costs and non-recurring litigations, were up 18.8% compared to the same period last year. Reflecting the sharp increase in additions, resulting from the #netliberare offer, selling and distribution and cost of goods sold were higher in the quarter as well as bad debt provisions.
In Q4'17, adjusted EBITDA decreased by 16.9% compared to the year-earlier period.
Working together with the fixed-line operations, Telekom Romania Mobile is taking steps to improve its performance, including enhanced 4G coverage, refocused sales efforts, and cost optimization.
ALBANIA |
December 2017 | December 2016 | Change | |||||
Mobile Subscribers | 1,941,324 | 1,839,273 | +5.5% | ||||
(€ mn) | Q4 '17 | Q4 '16 | Change | 12M '17 | 12M '16 | Change |
Service Revenues | 16.7 | 16.7 | +0.0% | 65.8 | 74.2 | -11.3% |
Total Revenues | 17.2 | 17.2 | +0.0% | 68.1 | 77.2 | -11.8% |
Adjusted EBITDA | 3.4 | 3.0 | +13.3% | 8.8 | 16.1 | -45.3% |
Adj. EBITDA margin (%) | 19.8% | 17.4% | +2.4pp | 12.9% | 20.9% | -8pp |
As of Q4'17, Telekom Albania's customer base totaled 1.94mn subscribers, up 5.5% compared to the same quarter last year.
In Q4'17, Telekom Albania's total and service revenues were unchanged, reflecting the rationalization of the market, focusing increasingly on outgoing revenues. The revenue stabilization reflects a healthier mix of lower international incoming revenues, down 20%, offset by higher retail revenues, up 15% compared to Q4'16. With the exit from the market of the fourth operator in early 2018, market rationalization should provide an opportunity for further improvements going forward.
Adjusted EBITDA increased by 13.3% compared to Q4'16, driven by lower direct expenses.
SIGNIFICANT EVENTS OF THE QUARTER |
SYNDICATED FACILITY ARRANGED BY EBRD
On October 3, 2017, COSMOTE proceeded with the drawdown of the full amount under the €150.0mn syndicated facility arranged by EBRD signed on July 10, 2017.
SUBSEQUENT EVENTS |
SHAREHOLDER REMUNERATION POLICY
On January 19, 2018, OTE announced that its Board of Directors had approved a medium-term Shareholder Remuneration Policy. Should the economic environment remain stable, the Company intends to distribute to its shareholders, through a combination of dividend and share buyback, the free cash flow it generates every year, after incorporating consideration for spectrum acquisitions and one-off items.The split between ordinary dividends and share buybacks is targeted at approximately 65%/35%, respectively, in 2018 and in the medium term.The implementation of the Remuneration Policy will start in 2018, and will be based on the free cash flow projections for the year.Pursuant to the new shareholder remuneration policy, the extraordinary General Meeting of Shareholders held on February 15, 2018, approved the share buyback for up to 10% of the Company's total paid up share capital for a period of 24 months, beginning February 15, 2018. The shares acquired will be cancelled.
BILATERAL TERM LOAN WITH THE EUROPEAN INVESTMENT BANK (EIB)
On January 23, 2018, COSMOTE proceeded with the drawdown of the full amount under the €150.0mnbilateral term loan with EIB, which was signed on July 10, 2017. The loan has a tenor of 7 years, will be repaid via equal semi-annual instalments and the interest rate was set at 2.805% p.a.
REPAYMENT OF NOTES UNDER THE GLOBAL MEDIUM-TERM PROGRAM
On February 7, 2018, OTE PLC fully repaid the remaining outstanding amount of €590.3mn under the Notes maturing on that date along with the accrued interest.
PRINCIPAL REPAYMENT UNDER THE €150.0 MILLION SYNDICATED FACILITY ARRANGED BY THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT (EBRD)
On January 12, 2018, COSMOTE repaid principal of €23.0mnunder the syndicated facility with EBRD, along with the accrued interest
OTE's CREDIT VALUATION
On January 24, 2018, Standard & Poor's Ratings Services raised its long-term corporate credit rating on OTE to 'BB-' from 'B+'
About OTE
OTE Group is the largest telecommunications provider in the Greek market and one of the leading telecom groups in Southeast Europe with presence in Greece, Romania and Albania. OTE is among the largest listed companies, with respect to market capitalization, in the Athens Stock Exchange.
OTE Group offers the full range of telecommunications services: from fixed-line and mobile telephony, broadband services, to pay television and ICT solutions. In addition to its core telecommunications activities, the Group is also involved in maritime communications, real-estate and professional training.
Additional Information is also available on:https://www.cosmote.gr/
Information on Financial Statements of OTE Group is available on:https://www.cosmote.gr/fixed/en/corporate/ir/financial-results/financial-statements-of-ote-group-and-ote-sa
Forward looking Disclaimer:
Certain statements in this document constitute forward-looking statements. Such forward looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, among other factors, changing economic, financial, business or other market conditions. OTE will not update such statements on a regular basis. As a result, you are cautioned not to place any reliance on such forward-looking statements. Nothing in this document should be construed as a profit forecast and no representation is made that any of these statement or forecasts will come to pass. Persons receiving this announcement should not place undue reliance on forward-looking statements and are advised to make their own independent analysis and determination with respect to the forecast periods, which reflect the Group's view only as of the date hereof.
Exhibits to follow:
I. Alternative Performance Measures "APMs"II. Consolidated Statements of Financial Position as of December 31, 2017 and December 31, 2016III. Consolidated Income Statements for the quarter and twelve months ended December 31, 2017 and comparative 2016IV. Group Revenues for the quarter and twelve months ended December 31, 2017 and comparative 2016V. Consolidated Statement of Cash Flows for the quarter ended December 31, 2017 and comparative quartersI. ALTERNATIVE PERFORMANCE MEASURES "APMs" |
The Group uses certain Alternative Performance Measures ("APMs") in making financial, operating and planning decisions as well as in evaluating and reporting its performance. These APMs provide additional insights and understanding to the Group's underlying operating and financial performance, financial condition and cash flow. The APMs should be read in conjunction with and do not replace by any means the directly reconcilable IFRS line items.
Definitions and reconciliations of Alternative Performance Measures ("APMs") |
Alternative Performance Measures ("APMs")
In discussing the performance of the Group, "Adjusted" measures are used such as: Adjusted EBITDA and the respective margin %, Adjusted net operating cash flow, Adjusted CapEx, and Adjusted Free Cash Flow. These are calculated by deducting from the performance measures deriving from directly reconcilable amounts of the Financial Statements, the impact of costs or payments related to voluntary leave schemes, costs or payments for restructuring plans and non-recurring litigations and Spectrum acquisitions.
Costs or payments related to Voluntary Leave Schemes
Costs or payments related to Voluntary Leave Schemes comprise the exit incentives provided to employees and the contributions to the social security fund to exit/retire employees before conventional retirement age. These costs are included within the income statement as well as within the cash flow statement lines "costs related to voluntary leave schemes" and "payments for voluntary leave schemes". However, they are excluded from the adjusted results in order for the user to obtain a better understanding of the Group's operating and financial performance achieved from ongoing activity.
Costs or payments related to other restructuring plans and non-recurring litigations
Other restructuring costs and non-recurring litigations comprise non-ongoing activity related costs arising from significant changes in the way the Group conducts business and non-recurring legal expenses. These costs are included in the Company's/Group's income statement, while the payment of these expenses are included in the cash flow statement. However, they are excluded from the adjusted results in order for the user to obtain a better understanding of the Group's operating and financial performance achieved from ongoing activity.
Spectrum acquisition payments
Spectrum payments comprise the amounts paid to acquire rights (licenses) through auctions run by the National Regulator to transmit signals over specific bands of the electromagnetic spectrum. As those payments are of significant size and of irregular timing, it is a common industry practice to be excluded for the calculation of the Adjusted Free Cash Flow and Adjusted Capital Expenditure (CapEx) in order to facilitate comparability with industry peers.
Net debt
Net debt is an APM used by management to evaluate the Group's capital structure and leverage. Net debt is defined as short-term borrowings plus long-term borrowings plus short-term portion of long-term borrowings less cash and cash equivalents as illustrated in the table below.
Adjusted Net Debt
Net debt (adjusted) is used by management to evaluate the Group's capital structure and leverage defined as Net debt including other financial assets as they are highly liquidity assets. The calculations are described in the table below:
Amounts in € mn | 31/12/2017 | 31/12/2016 | Change |
Long-term borrowings | 1,276.2 | 1,941.0 | -34.3% |
Short-term portion of long-term borrowings | 764.5 | 184.1 | - |
Short-term borrowings | - | - | - |
Cash and cash equivalents | (1,297.7) | (1,585.6) | -18.2% |
Net Debt | 743.0 | 539.5 | +37.7% |
Other financial assets | (5.9) | (5.6) | +5.4% |
| Adjusted Net Debt | 737.1 | 533.9 | +38.1% |
EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization)
EBITDA is intended to provide useful information to analyze the Group's operating performance. EBITDA is defined as total revenues plus other operating income less total operating expenses before depreciation, amortization and impairment, as illustrated in the table below. EBITDA margin (%) is defined as EBITDA divided by total revenues.
Adjusted EBITDA (Operating profit before financial and investing activities, depreciation, amortization and impairment, costs related to voluntary leave schemes and other restructuring costs and non-recurring litigations)
Adjusted EBITDA is intended to provide useful information to analyze the Group's operating performance excluding the impact of costs related to voluntary leave schemes, other restructuring costs and non-recurring litigations. Adjusted EBITDA is defined as EBITDA adding back costs related to voluntary leave schemes, other restructuring costs and non-recurring litigations, as illustrated in the table below. Adjusted EBITDA margin (%) is defined as Adjusted EBITDA divided by total revenues.
Amounts in € mn | Q4 '17 | Q4 '16 | Change | 12M '17 | 12M '16 | Change |
Total Revenues | 998.1 | 1,027.0 | -2.8% | 3,857.1 | 3,908.1 | -1.3% |
Other Operating Income | 16.4 | 29.5 | -44.4% | 51.4 | 55.2 | -6.9% |
Total operating expenses before depreciation, amortization and impairment | (696.7) | (720.3) | -3.3% | (2,666.0) | (2,696.3) | -1.1% |
EBITDA | 317.8 | 336.2 | -5.5% | 1,242.5 | 1,267.0 | -1.9% |
EBITDA margin % | 31.8% | 32.7% | -0.9pp | 32.2% | 32.4% | -0.2pp |
Costs related to voluntary leave schemes | 14.0 | 6.1 | +129.5% | 51.8 | 49.6 | +4.4% |
Other restructuring and non-recurring litigations | 5.4 | 1.4 | - | 9.6 | 4.3 | +123.3% |
Adjusted EBITDA | 337.2 | 343.7 | -1.9% | 1,303.9 | 1,320.9 | -1.3% |
Adjusted EBITDA margin % | 33.8% | 33.5% | +0.3pp | 33.8% | 33.8% | 0pp |
Adjusted Profit to owners of the parent
Adjusted Profit for the year attributable to owners of the parent is intended to provide useful information to analyze the Group's net profitability excluding the impact of significant non-recurring or irregularly recorded items in order to facilitate comparability with previous ongoing performance. Adjusted Profit for the year (attributable to owners of the parent) is calculated by adding back to the Profit of the year (attributable to owners of the parent) the impact upon it of the following items: costs related to voluntary leave schemes, net impact from impairments, reassessment of deferred tax, financial expenses for bond issue and bond buyback premium, reversal of provision related to Assets sales (Globul and Hellas Sat), other restructuring costs and non-recurring litigation expenses, as illustrated in the table below. A revision has been made in 2016 data for the calculation of adjusted Profit to owners of the parent in order to reflect minorities.
Amounts in € mn- After Tax impact | Q4 '17 | Q4 '16 | Change | 12M '17 | 12M '16 | Change |
Profit to owners of the parent (reported) | (52.7) | 16.6 | - | 67.2 | 140.0 | -52.0% |
Costs related to voluntary leave schemes | 5.7 | 2.5 | +128.0% | 34.4 | 34.3 | +0.3% |
Reversal of provision related to Assets Sales | (13.4) | - | - | (13.4) | (13.1) | +2.3% |
Net Impact from Impairments | 115.4 | 31.6 | - | 115.4 | 31.6 | - |
Other restructuring & non-recurring litigations | 5.4 | 1.0 | - | 12.4 | 8.7 | +42.5% |
Reassessment of Deferred tax | (23.3) | - | - | (23.3) | - | - |
Adjusted Profit to owners of the parent | 37.1 | 51.7 | -28.2% | 192.7 | 201.5 | -4.4% |
Capital expenditure (CAPEX) and Adjusted Capital expenditure
Capital expenditure is defined as payments for purchase of property plant and equipment and intangible assets. The Group uses capital expenditure as an APM to ensure that the cash spending is in line with its overall strategy for the use of cash. Adjusted capital expenditure is calculated by excluding from Capital expenditure, spectrum payments and capital expenditure payments related to non-recurring litigation as illustrated in the table below:
Amounts in € mn | Q4 '17 | Q4 '16 | Change | 12M '17 | 12M '16 | Change |
Purchase of property plant and equipment and intangible assets (reported) - CAPEX | (320.2) | (153.0) | +109.3% | (919.9) | (653.0) | +40.9% |
Spectrum Payments | 95.9 | 12.5 | - | 111.4 | 26.0 | - |
| Capital expenditure payments related to non-recurring litigation | 11.0 | - | - | 11.0 | - | - |
Adjusted CAPEX | (213.3) | (140.5) | +51.8% | (797.5) | (627.0) | +27.2% |
Adjusted Net Operating Cash Flow
Net Cash from operating activities focuses on the cash inflows and outflows from a company's main business activities (interest expense and income tax paid included on the outflows). Adjusted Net Operating Cash Flow is defined as net cash flows from operating activities adding back payments for voluntary leave schemes, payments for other restructuring plans and non-recurring litigation expenses plus interest received, as illustrated in the table below:
Amounts in € mn | Q4 '17 | Q4 '16 | Change | 12M '17 | 12M '16 | Change |
Net cash flows from operating activities (reported) | 233.9 | 413.4 | -43.4% | 800.6 | 1,025.1 | -21.9% |
Payment for voluntary leave schemes | 42.1 | 10.0 | - | 65.3 | 53.9 | +21.2% |
Payment for restructuring and non-recurring litigations | 31.5 | - | - | 35.1 | 4.4 | - |
Interest received | 0.4 | 0.4 | - | 1.6 | 2.2 | -27.3% |
Adjusted Net Operating Cash Flow | 307.9 | 423.8 | -27.3% | 902.6 | 1,085.6 | -16.9% |
Free Cash Flow
Free cash flow is an APM used by the Group and defined as cash generated by operating activities after payments for purchase of property plant and equipment and intangible assets (CAPEX). Free cash flow is intended to measure the cash generation from the Group's business, based on operating activities, including the efficient use of working capital and taking into account its payments for purchases of property plant and equipment and intangible assets. The Group presents free cash flow because it believes the measure assists users of the financial statements in understanding the Group's cash generating performance as well as availability for debt repayment, dividend distribution and own reserves.
Amounts in € mn | Q4 '17 | Q4 '16 | Change | 12M '17 | 12M '16 | Change |
Net cash flows from operating activities | 233.9 | 413.4 | -43.4% | 800.6 | 1,025.1 | -21.9% |
Purchase of property, plant, equipment & intangible assets | (320.2) | (153.0) | 109.3% | (919.9) | (653.0) | +40.9% |
Free Cash Flow | (86.3) | 260.4 | -133.1% | (119.3) | 372.1 | -132.1% |
Adjusted Free Cash Flow
Adjusted Free Cash Flow facilitates comparability of Cash Flow generation with industry peers. Adjusted Free Cash Flow is useful in connection with discussions with the investment analyst community and debt rating agencies. Adjusted Free Cash Flow is calculated by excluding from the Free Cash Flow (defined earlier) the payments related to voluntary leave schemes, other restructuring plans and non-recurring litigation expenses and spectrum and adding the interest received.
Amounts in € mn | Q4 '17 | Q4 '16 | Change | 12M '17 | 12M '16 | Change |
Free Cash Flow | (86.3) | 260.4 | -133.1% | (119.3) | 372.1 | -132.1% |
Payment for voluntary leave schemes | 42.1 | 10.0 | - | 65.3 | 53.9 | +21.2% |
Payment for restructuring and non-recurring litigations | 42.5 | - | - | 46.1 | 4.4 | - |
Interest received | 0.4 | 0.4 | - | 1.6 | 2.2 | -27.3% |
Spectrum payments | 95.9 | 12.5 | - | 111.4 | 26.0 | - |
Adjusted FCF | 94.6 | 283.3 | -66.6% | 105.1 | 458.6 | -77.1% |
II. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
Amounts in € mn | GROUP | |
31/12/2017 | 31/12/2016 | |
ASSETS | ||
Property, plant and equipment | 2,740.9 | 2,852.5 |
Goodwill | 447.1 | 507.0 |
Telecommunication licenses | 523.6 | 491.3 |
Other intangible assets | 504.2 | 490.4 |
Investments | 0.1 | 0.1 |
Loans to pension funds | 82.5 | 85.6 |
Deferred tax assets | 313.5 | 316.5 |
Other non-current assets | 112.1 | 99.4 |
Total non - current assets | 4,724.0 | 4,842.8 |
Current assets | ||
Inventories | 91.3 | 95.9 |
Trade receivables | 719.7 | 730.5 |
Other financial assets | 5.9 | 5.6 |
Other current assets | 259.3 | 307.6 |
Restricted Cash | 4.3 | 3.6 |
Cash and cash equivalents | 1,297.7 | 1,585.6 |
Total current assets | 2,378.2 | 2,728.8 |
TOTAL ASSETS | 7,102.2 | 7,571.6 |
EQUITY AND LIABILITIES | ||
Equity attributable to owners of the parent | ||
Share capital | 1,387.1 | 1,387.1 |
Share premium | 496.4 | 496.2 |
Treasury shares | (14.5) | (14.3) |
Statutory reserve | 373.5 | 362.2 |
Foreign exchange and other reserves | (157.1) | (156.5) |
Changes in non-controlling interests | (3,314.1) | (3,314.1) |
Retained earnings | 3,573.1 | 3,595.4 |
Total equity attributable to owners of the Parent | 2,344.4 | 2,356.0 |
Non-controlling interests | 245.0 | 295.7 |
Total equity | 2,589.4 | 2,651.7 |
Non-current liabilities | ||
Long-term borrowings | 1,276.2 | 1,941.0 |
Provision for staff retirement indemnities | 224.3 | 227.6 |
Provision for youth account | 129.9 | 142.5 |
Deferred tax liabilities | 30.6 | 50.3 |
Other non - current liabilities | 130.8 | 118.3 |
Total non - current liabilities | 1,791.8 | 2,479.7 |
Current liabilities | ||
Trade accounts payable | 1,162.4 | 1,364.1 |
Short-term portion of long-term borrowings | 764.5 | 184.1 |
Income tax payable | 41.6 | 79.2 |
Deferred revenue | 133.5 | 152.1 |
Provision for voluntary leave schemes | 139.3 | 141.9 |
Dividends payable | 0.4 | 0.3 |
Other current liabilities | 479.3 | 518.5 |
Total current liabilities | 2,721.0 | 2,440.2 |
TOTAL EQUITY AND LIABILITIES | 7,102.2 | 7,571.6 |
III. CONSOLIDATED INCOME STATEMENT |
Amounts in € mn | Q4'17 | Q4'16 | % | 12M'17 | 12M'16 | % |
Total revenues | 998.1 | 1,027.0 | -2.8% | 3,857.1 | 3,908.1 | -1.3% |
Other operating income | 16.4 | 29.5 | -44.4% | 51.4 | 55.2 | -6.9% |
Operating expenses | ||||||
Interconnection and roaming costs | (127.8) | (154.5) | -17.3% | (569.8) | (542.9) | +5.0% |
Provision for doubtful accounts | (32.6) | (21.2) | +53.8% | (106.3) | (89.9) | +18.2% |
Personnel costs | (153.2) | (158.1) | -3.1% | (622.5) | (642.4) | -3.1% |
Costs related to voluntary leave schemes | (14.0) | (6.1) | +129.5% | (51.8) | (49.6) | +4.4% |
Commission costs | (41.3) | (34.7) | +19.0% | (141.3) | (134.7) | +4.9% |
Merchandise costs | (94.9) | (77.3) | +22.8% | (296.7) | (268.7) | +10.4% |
Maintenance and repairs | (18.2) | (21.8) | -16.5% | (96.6) | (100.1) | -3.5% |
Marketing | (27.2) | (31.2) | -12.8% | (96.5) | (104.5) | -7.7% |
Other operating expenses | (187.5) | (215.4) | -13.0% | (684.5) | (763.5) | -10.3% |
Total operating expenses before depreciation, amortization and impairment | (696.7) | (720.3) | -3.3% | (2,666.0) | (2,696.3) | -1.1% |
Operating profit before financial and investing activities, depreciation, amortization and impairment | 317.8 | 336.2 | -5.5% | 1,242.5 | 1,267.0 | -1.9% |
Depreciation, amortization and impairment | (347.7) | (266.2) | +30.6% | (937.0) | (881.4) | +6.3% |
Operating profit/(loss) before financial and investing activities | (29.9) | 70.0 | -142.7% | 305.5 | 385.6 | -20.8% |
Income and expense from financial and investing activities | ||||||
Interest and related expenses | (34.1) | (36.6) | -6.8% | (139.4) | (149.4) | -6.7% |
Interest income | 0.5 | 0.4 | +25.0% | 1.6 | 2.2 | -27.3% |
Foreign exchange differences, net | (5.4) | (4.4) | +22.7% | (12.2) | (4.3) | +183.7% |
Gains from investments and other financial assets - Impairment | 19.0 | (0.9) | - | 19.0 | 18.3 | +3.8% |
| Total loss from financial and investing activities | (20.0) | (41.5) | -51.8% | (131.0) | (133.2) | -1.7% |
Profit/(loss) before tax | (49.9) | 28.5 | - | 174.5 | 252.4 | -30.9% |
Income tax | (26.7) | (43.7) | -38.9% | (151.7) | (168.4) | -9.9% |
Profit /(loss) for the period | (76.6) | (15.2) | - | 22.8 | 84.0 | -72.9% |
Attributable to: | ||||||
Owners of the parent | (52.7) | 16.6 | - | 67.2 | 140.0 | -52.0% |
Non-controlling interests | (23.9) | (31.8) | -24.8% | (44.4) | (56.0) | -20.7% |
IV. GROUP REVENUES |
Amounts in € mn | Q4'17 | Q4'16 | % | 12M'17 | 12M'16 | % |
Revenue | ||||||
Fixed business: | ||||||
Retail services revenues | 297.6 | 301.2 | -1.2% | 1,191.2 | 1,205.2 | -1.2% |
Wholesale services revenues | 154.3 | 179.6 | -14.1% | 662.6 | 647.7 | +2.3% |
Other revenues | 82.9 | 82.0 | +1.1% | 295.6 | 297.7 | -0.7% |
Total revenues from fixed business | 534.8 | 562.8 | -5.0% | 2,149.4 | 2,150.6 | -0.1% |
Mobile business: | ||||||
Service revenues | 342.7 | 319.2 | +7.4% | 1,334.9 | 1,311.3 | +1.8% |
Handset revenues | 71.1 | 65.1 | +9.2% | 224.3 | 221.5 | +1.3% |
Other revenues | 8.7 | 6.9 | +26.1% | 20.6 | 23.3 | -11.6% |
Total revenues from mobile business | 422.5 | 391.2 | +8.0% | 1,579.8 | 1,556.1 | +1.5% |
Miscellaneous other revenues | 40.8 | 73.0 | -44.1% | 127.9 | 201.4 | -36.5% |
Total revenues | 998.1 | 1,027.0 | -2.8% | 3,857.1 | 3,908.1 | -1.3% |
V. CONSOLIDATED STATEMENT OF CASH FLOWS |
Amounts in € mn | Q4 '16 | Q1 '17 | Q2 '17 | Q3 '17 | Q4 '17 |
Cash flows from operating activities | |||||
Profit before tax | 28.5 | 75.4 | 59.6 | 89.4 | (49.9) |
Adjustments for: | |||||
Depreciation, amortization and impairment | 266.2 | 197.1 | 195.4 | 196.8 | 347.7 |
Costs related to voluntary leave schemes | 6.1 | 2.5 | 8.2 | 27.1 | 14.0 |
Provision for staff retirement indemnities | 3.4 | 2.7 | 2.8 | 2.7 | 1.6 |
Provision for youth account | (0.5) | 0.7 | 0.7 | 0.7 | - |
Provision for doubtful accounts | 21.2 | 24.3 | 22.5 | 26.9 | 32.6 |
Foreign exchange differences, net | 4.4 | (2.9) | 13.1 | (3.4) | 5.4 |
Interest income | (0.4) | (0.4) | (0.4) | (0.3) | (0.5) |
| (Gains) / losses from investments and other financial assets - Impairment | 0.9 | - | - | - | (19.0) |
Interest and related expenses | 36.6 | 32.4 | 38.0 | 34.9 | 34.1 |
Working capital adjustments: | 110.9 | (114.1) | (58.5) | (60.4) | 43.0 |
Decrease / (increase) in inventories | 14.6 | 1.7 | (7.5) | 12.1 | (4.5) |
Decrease / (increase) in receivables | (12.9) | (12.2) | (63.4) | (48.2) | 60.2 |
(Decrease) / increase in liabilities (except borrowings) | 109.2 | (103.6) | 12.4 | (24.3) | (12.7) |
Plus /(Minus): | |||||
Payment for voluntary leave schemes | (10.0) | (7.3) | (2.9) | (13.0) | (42.1) |
| Payment of staff retirement indemnities and youth account, net of employees' contributions | (4.1) | (3.1) | (2.9) | (3.0) | (3.6) |
Interest and related expenses paid | (21.3) | (33.6) | (3.7) | (58.9) | (35.9) |
Income taxes paid | (28.5) | (11.3) | (2.2) | (104.9) | (93.5) |
Net cash flows from operating activities | 413.4 | 162.4 | 269.7 | 134.6 | 233.9 |
Cash flows from investing activities | |||||
Sale or maturity of financial assets | 1.7 | 0.2 | - | - | - |
Repayment of loans receivable | 2.2 | 1.0 | 1.7 | 1.8 | 1.7 |
Purchase of property, plant and equipment and intangible assets | (153.0) | (200.5) | (223.0) | (176.2) | (320.2) |
Movement in restricted cash | 0.2 | (0.1) | - | - | (0.7) |
Interest received | 0.4 | 0.4 | 0.3 | 0.5 | 0.4 |
Net cash flows used in investing activities | (148.5) | (199.0) | (221.0) | (173.9) | (318.8) |
Cash flows from financing activities | |||||
Share option plans | 0.2 | - | (0.3) | - | - |
Proceeds from loans granted and issued | - | - | - | - | 150.0 |
Repayment of loans | (42.6) | (64.8) | (22.6) | (92.8) | (62.5) |
Dividends paid to Company's owners | - | - | (0.3) | (77.8) | - |
| Net cash flows from / (used in) financing activities | (42.4) | (64.8) | (23.2) | (170.6) | 87.5 |
Net increase / (decrease) in cash & cash equivalents | 222.5 | (101.4) | 25.5 | (209.9) | 2.6 |
Cash and cash equivalents, at the beginning of the period | 1,364.9 | 1,585.6 | 1,483.8 | 1,508.5 | 1,297.0 |
Net foreign exchange differences | (1.8) | (0.4) | (0.8) | (1.6) | (1.9) |
Cash and cash equivalents, at the end of the period | 1,585.6 | 1,483.8 | 1,508.5 | 1,297.0 | 1,297.7 |
OTE - Hellenic Telecommunications Organization SA published this content on 22 February 2018 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 22 February 2018 10:31:03 UTC.
Original documenthttps://www.cosmote.gr/fixed/documents/10280/245517766/220218_OTE_Q4_2017_EN_RESULTS.docx/1adb718c-16ac-4aa2-b090-d3129bbb80ba
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