OTE Telecom quarterly profit inches up, cost savings offset COVID-19 hit

OTE Telecom, Greece's biggest telecoms operator, reported a 0.8% rise in second-quarter core profit on Thursday as cost saving measures offset the impact of COVID-19 pandemic on revenue from mobile services.

Adds detail

ATHENS, Aug 6 (Reuters) - OTE Telecom OTEr.AT, Greece's biggest telecoms operator, reported a 0.8% rise in second-quarter core profit on Thursday as cost saving measures offset the impact of COVID-19 pandemic on revenue from mobile services.

OTE Telecom, which is 46% owned and managed by Deutsche Telecom DTEGn.DE, said core earnings (EBITDA) reached 321.3 million euros ($381.5 million) in the second quarter, up from 318.8 million in the same period last year.

Group sales fell 3% to 918 million euros. A two-month lockdown that Greece imposed in March to stem the spread of COVID-19 has hurt revenue from mobile services, roaming and handsets sales.

The impact will stretch through the second half of the year, OTE said, adding it would stick to "stringent" cost cutting to maintain its profitability and cash flow generation this year.

OTE reiterated its 2020 outlook for free cash flow of 350 million euros. It plans to spend 400 million euros on dividends for shareholders, significant rise from last year.

($1 = 0.8423 euros)

(Reporting by Angeliki Koutantou Editing by David Holmes)

((angeliki.koutantou@thomsonreuters.com; +30 210 3376436; Reuters Messaging: angeliki.koutantou.reuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More