COSMOTE Romania expands postpaid customer base and posts significant revenue growth

COSMOTE announces key performance indicators for the first quarter of 2010 fiscal year, ended March 31, 2010, as reported today by OTE Group.

As of the end of Q1'10, COSMOTE'S total customer base in Romania reached 7.2 million, of which 21% was postpaid. The increase in the postpaid customer base, especially in the business segment, generated significant revenue growth. The number of prepaid customers also rose despite fierce competition in this segment. In the quarter, service revenues were up nearly 8%, with outgoing service revenues alone posting an increase of 11%. Excluding Zapp, the drop in EBITDA for the quarter would be 27%, primarily reflecting higher network expenses as well as selling & distribution costs; in addition, the sharp drop in international incoming interconnection rates directly affected profitability.

Having reached a market share in excess of 23% and being able to offer 3G services after the acquisition of Zapp, COSMOTE Romania focuses on expanding its presence in the broadband and corporate markets. The integration of Zapp is proceeding smoothly, with significant revenue and cost synergies already achieved in the quarter.

"We are pleased with the company's evolution considering the difficult economic environment, intense competition, increasingly maturing market, as well as COSMOTE's investments to optimase network capacity and servicing quality. We've succeeded in gaining significant market share in the corporate segment, posting impressive growth rates on a yearly basis. Moreover, with the launch of 3G broadband services COSMOTE Romania accelerated its growth prospects, strenghtening its market presence and making significant inroads in the business customers segment", said COSMOTE Romania CFO, Mr. Konstantinos Apostolou.

SUMMARY FINANCIAL DATA FOR COSMOTE & GERMANOS ROMANIA

SUMMARY FINANCIAL RESULTS FOR COSMOTE GROUP

In Q1'10, the mobile operations of the OTE Group provided telecommunications services to approximately 21.8 million customers, a 9.5% increase compared to Q1'09.