Cosmote's Romanian arm Jan-Sept EBITDA rises 27.4%

In the third quarter alone, Cosmote's EBITDA in Romania rose by 16.3% on the year to 34.3 million euro, partly reflecting a one-off rebate from equipment suppliers, Greek telecoms group OTE said in its third-quarter financial report.

Cosmote Romania’s total customer base fell by 2.4% on the year to 6.38 million at end-September. Its postpaid client base accounted for 24.1% of the total number of customers.

The number of business customers grew by 32% compared to the third quarter of 2011, reflecting the company’s targeted offers for professional users. Its 3G customer base increased by 12% compared to a year earlier.

The mobile operator's January-September revenues in Romania rose by 2.1% on the year to 349.1 million euro, while in the third quarter alone revenues fell 2.2% to 118 million euro.

Third-quarter service revenues declined by 6.0% on the year as a result of two consecutive interconnection rate cuts implemented in March and September.

Blended average revenue per user (ARPU) increased by 1.5% in the first nine months of the year compared to the same period of 2011, due to the launch of competitive solutions aimed at specific customer segments.

In September, Cosmote Romania won in an auction held by the local telecoms regulator one block in the 800 MHz band, two blocks in the 900 MHz band, five blocks in the 1800 MHz band and two blocks in the 2600 MHz (FDD) band, valid from 2014 through 2029, for a total amount of 179.9 million euro.

Payment of 52 million euro is due in November 2012, with the balance of 127.9 million payable by June 2013, OTE said in the report.

Cash collateral of 37 million euro has been used and recorded as restricted cash for telecommunication licenses in the statement of financial position, it added.

Cosmote Romania's main rivals are the local units of France's Orange and of global telecoms giant Vodafone.

Cosmote also operates units in Greece, Albania and Bulgaria.

($=0.7729 euro)