-0.3 C
Bucharest
March 8, 2021
BUSINESS

Romtelecom, EUR 13.7 M operating profit by cutting expenses

Romtelecom revenues fell by 8.1 per cent to EUR 201.4 M in Q1, following a declining number of customers and the dropping average per-user revenue from voice services, but did register EUR 13.7 M operating profit by cutting expenses.

In Q1 2008 the company reported EUR 219.2 M revenues and EUR 14.2 M operating loss, Mediafax informs. ‘Starting with the last months of 2008, the economic environment in Romania was confronted with the impact of the severe depreciation of the local currency that lost almost 16 per cent against the euro from September 2008 through to February 2009, as well as with the consequences of the global economic crisis. March brought along some signs of stabilization following successful negotiations with the IMF and the slight RON appreciation,’ reads a quarterly report prepared by the Hellenic OTE Group, Romtelecom majority shareholder. Operating expenses dropped by 22.2 per cent in the analyzed period.

The costs of the lay-off programme amounted to EUR 3.3 M in the first three months of 2009 compared to EUR 29.6 M in the first three months of 2008, according to the same report. Romtelecom’s strategic objective is to mitigate the negative effect of a decreasing business in the traditional telephony segment by developing broadband and satellite TV services.

Related posts

NEWS IN BRIEF

Test

Hidroelectrica cancels two more ‘wise guy’s contracts

Romgaz CEO submits resignation

Nine O' Clock