Quarterly Report • Sep 24, 2015
Quarterly Report
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In accordance with Article 5 of Law 3556/2007
The members of the Board of Directors of HELLENIC TELECOMMUNICATIONS ORGANIZATION S.A.:
We confirm that to the best of our knowledge:
Maroussi, 27 August 2008
Chairman & Managing Director Vice Chairman Board Member
Panagis Vourloumis George Bitros Panagiotis Tampourlos
The two members of the Board of Directors who have signed the above statements, have been assigned to do so in accordance with the decision of the Company's Board of Directors of 27 August 2008.
The report of the Board of Directors of the HELLENIC TELECOMMUNICATIONS ORGANIZATION S.A. (hereinafter referred to as "OTE" or the "Company") was prepared in accordance with article 5 of Law 3556/2007 and refers to the Interim Condensed Financial Statements (Separate and Consolidated) as of 30 June 2008 and the six month period then ended. The OTE Group (the "Group") apart from the Company, also includes subsidiaries over which OTE has direct or indirect control. The Separate and Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards (I.F.R.S.).
This report includes the financial highlights of the first half of 2008, the significant events which took place in the first half of 2008, a presentation of the main risks and uncertainties for the second half of the year, as well as the material transactions between the Company and its related parties.
OTE Group Revenues for the first half of 2008 increased by 2.2%, compared to the related period of 2007 and reached Euro 3,128.0 million. This increase in revenues is mainly due to the following:
The above increases offset the decrease in revenues from domestic telephony by 11.0% compared to the same period last year. Revenues from international telephony remained stable (1.1% increase) compared to same period last year.
OTE's Revenues, which reached Euro 1,284.8 million, reflecting a decrease of 3.5% compared to the same period prior year. This is a result of the decrease in revenues from domestic telephony by 9.3%, as well as the decrease in sales of telecommunication equipment and prepaid cards. These decreases were partially offset by the increase in revenues from international telephony by 12.2%, the increase in revenues from ADSL and Internet by 12.3%, the increase in revenues from interconnection services by 6.4% and the significant increase from services rendered by 41.6%.
The Group's Operating Expenses reached Euro 2,600.2 million and reflect an increase of 2.1% compared to the same period last year. This increase is mainly due to the increase in the cost of telecommunication equipment by 4.1%, the increase in depreciation and amortization by 2.5% and the increase in other operating expenses by 3.0%. Furthermore, the Group's operating expenses for the first half of 2008 include OTE's and ROMTELECOM's early retirement programs' costs of Euro 44.8 million, compared to Euro 22.1 million the same period last year.
The Company's Operating Expenses were Euro 1,107.8 million and reflect a decrease of 6.5% compared to the same period last year. The decrease in operating expenses is mainly due to the following:
As a result of all the above, Operating Profit before Financial Results of the Group for the first half of 2008 reached Euro 527.8 million compared to Euro 513.1 million in the same period last year reflecting an increase of 2.9%. Operating Profit before Financial Results of the Company for the first half of 2008 reached Euro 177.0 million, compared to Euro 146.8 million in the same period last year, reflecting an increase of 20.6%.
The Group's Operating Profit before Depreciation and Amortization for the first half of 2008 reached to Euro 1,112.6 million compared to Euro 1,083.9 million in the same period of 2007, reflecting an increase of 2.7%. The respective margin on revenues reached 35.6% compared to 35.4% in the same period last year. Excluding early retirement program costs, Operating Profit before Depreciation and Amortization for the first half of 2008 reached Euro 1,157.4 million compared to Euro 1,106.0 million in the same period last year, reflecting an increase of 4.7%. The respective margin on revenues reached 37.0% compared to 36.1% in the same period last year.
The Company's Operating Profit before Depreciation and Amortization for the first half of 2008 reached Euro 416.2 million compared to Euro 405.7 million in the same period last year, reflecting an increase of 2.6%. The respective margin on revenues reached 32.4% compared to 30.5% in the same period last year. Excluding early retirement program costs, Operating Profit before Depreciation and Amortization for the first half of 2008 amounted to Euro 428.4 million compared to Euro 427.8 million in the same period last year. The respective margin on revenues reached 33.3% compared to 32.1% in the same period last year.
In relation to the Group's Financial Results, interest expenses were Euro 166.2 million, reflecting an increase of 55.6% compared to same period last year, which is the result of the increase in the Group's debt due to the acquisition of COSMOTE's minority interests. Interest income remained stable as compared to first half of 2007. Income from dividends decreased by 26.2% due to the lower dividend from TELECOM SRBJIA in 2008.
Income Tax (expense) of the Group decreased by 5.3% compared to the same period last year.
The Minority Interests in the Group's Profit declined from Euro 72.7 million (expense) in the first half of 2007 to Euro 3.0 million (income) in the same period of 2008, due to the acquisition of COSMOTE's minority interests.
As a result of all the above, the Group's Profit after minority interests for the first half of 2008 amounted to Euro 300.4 million compared to Euro 277.5 million in the same period prior year, reflecting an increase of 8.3%.
The Group's Capital Expenditure (CAPEX) for the first half of 2008 amounted to Euro 375.0 million from Euro 467.3 million in the same period last year reflecting a decrease of 19.8%. The decrease is mainly due to the decreased Capital Expenditure of COSMOTE and ROMTELECOM.
The Group's Total Debt at 30 June 2008 was Euro 6.063,8 million from Euro 5,527.8 million as at 31 December 2007, reflecting an increase of 9.7%, whereas the Group's Net Debt at 30 June 2008 reached to Euro 4,607.4 million from Euro 4,211.5 million at 31 December 2007, reflecting an increase of 9.4%.
With respect to the results of OTE's significant subsidiaries, the following should be noted:
COSMOTE GROUP: Maintained the leading position in the mobile telephony market, with an increase in revenues of 8.1% and in EBITDA of 12.9%, in the first half of 2008 as compared to the same period of 2007. COSMOTE Group enhanced its market share in every country that operates, a significant achievement given the very competitive environment. Furthermore, COSMOTE Group added approximately 1.9 million new subscribers during the first half of 2008, increasing its customer base to nearly 17.5 million, as of 30 June 2008. COSMOTE Greece continues to steadily increase its market share attracting almost 100% of the mobile market's total growth. In the first half of 2008, it increased its revenues by 6.5%, generating a EBITDA margin 42,7%. At the same time GLOBUL in Bulgaria and AMC in Albania continued to improve their EBITDA margin, while in COSMOTE ROMANIA, EBITDA turned to positive for the first time in the second quarter of 2008. COSMOTE's General Assembly of Shareholders approved the distribution of a dividend from 2007 profits of Euro 245.2 million (Euro 0.73 per share).
ROMTELECOM: In the first half of 2008, revenues increased by 0.7% compared to the same period last year. ROMTELECOM's loss for the first half of 2008 amounted to Euro 21.4 million. This loss is mainly due to the cost of the early retirement program of Euro 32.6 million, which is included in the results of the first half of 2008. In accordance with its corporate transformation program, which ROMTELECOM established in 2008, it has already decreased its headcount by 16%, as compared to the end of 2007. The Company's strategy targets at offsetting revenues from new services (Broadband, Business Data& TV) with the decline in revenues from fixed telephony and traditional services, although a decrease in the rate of decline has been noted when comparing to the same period last year. Revenues from Data services (ADSL, VPN and other broadband services) continue to grow, while the DTH TV service continues to be commercially successful, reaching 528 thousand customers by the end of the first half 2008.
Successful completion of the Voluntary Public offer for the acquisition of COSMOTE's shares. On 29 January 2008, at the end of the acceptance period, OTE owned an interest of 98.59% in Cosmote. Within three months after the end of the acceptance period, OTE had the right to require the transfer to it of all remaining shares (Squeeze-Out Right) at the same price as the offer price of the tender, i.e. Euro 26.25 per share. During the same period, the remaining shareholders of Cosmote had the right to sell, in the market, to OTE their shares (Sell-Out Right) for a consideration of Euro 26.25 per share. After the completion of exercise of the Squeeze-Out Rights and of the Sell-Out Rights, on 9 April 2008, OTE owned the total (100%) of COSMOTE's shares and corresponding voting rights and requested for the delisting of COSMOTE's shares from the Athens Exchange, which was approved by the Hellenic Capital Market Commission.
In February 2008, OTE announced that it's subsidiary OTE Plc, had successfully completed the bookbuilding process for the issuance of Euro 1.5 billion 3-year Fixed Rate Notes and of Euro 600 million 7-year Fixed Rate Notes. The 3-year Fixed Rate Notes, priced at 99.750%, will pay an annual coupon of 5.375%, while the 7-year Fixed Rate Notes, priced at 99.705%, will pay an annual coupon of 6.0%. The bookbuilding process was completed on the same day, within three hours, and the issues were oversubscribed 3.6 times. The proceeds were used for the refinancing of the bridge facility of OTE Plc that it had obtained in November 2007, for the acquisition of COSMOTE's shares held by minority shareholders.
In January 2008, ROMTELECOM announced the approval of its Business Plan for 2008 by its Board of Directors. The basic points include the improvement of the internal procedures in order to increase the subscriber base, enhance its market position in markets which have demonstrated growth and in cost control through the restructuring of its operations.
In May 2008, OTE completed the sale of its investments in OTENET Cyprus Ltd and OTENET Telecommunications Ltd to the Cypriot company Cyprus Trading Corporation Plc (CTC) for Euro 3.9 million.
In May 2008 the Group acquired the remaining interest in its subsidiary, VOICENET, from SANYO HELLAS INVESTMENTS S.A., for a consideration of Euro 1.3 million.
On 27 June 2008 the relevant ministerial decision which approved the merger, by absorption, of OTENET by OTE was registered in Societe Anonymes Records.
OTE announced that its subsidiary, OTE ESTATE, has filed a request with the Hellenic Capital Market Commission on 10 April 2008, requesting for a license for the operation of a Real Estate Investment Company. This initiative is part of OTE Group's strategy to bring out the value of OTE Estate's real estate portfolio. The value of the real estate assets that will be subscribed to the Real Estate Investment Company, will be no less than Euro 250.0 million.
On 28 February 2008, OTE's management and OME-OTE (the employee's union) signed a Collective Labor Agreement whereby employees who are eligible to early retirement by 29 December 2008 can receive certain benefits if they leave by 30 December 2008. The right to file an irrevocable application for participation in the early retirement program ended on 21 March 2008. The total cost amounted to Euro 12.2 million and is included in the results of the first half of 2008.
On 6 August 2008 OTE's management and OME-OTE (the employees' union) signed a biannual Collective Labor Agreement (2008-2009), in which wage increases of 3.5% as of 1.1.2008, 3.0% as of 1.9.2008, 3.0% as of 1.1.2009 and 3.0% as of 1.7.2009 were agreed and certain institutional issues were regulated.
On 19 May 2008 Moody's down graded OTE's rating from Baa1 to Baa2. The agreement between the Greek State and DEUTSCHE TELEKOM A.G., included terms that may lend the Greek State's interest in OTE to potentially decrease below 20%. As a result of such terms, the Company's support by the Greek State was downgraded to "low" from "average". This modification resulted in the longterm rating of Baa2. Since the Company's underlying business fundamentals and financial strength remain unchanged the rest of the factors used for the Company's rating have not been modified.
On 17 July 2008, DEUTSCHE TELEKOM AG's participation in OTE's share capital stood at 21.967%, which corresponds to 107,671,713 shares with corresponding voting rights.
On 14 May 2008 the Share Purchase Agreement and Shareholders Agreement between the Greek State and DEUTSCHE TELEKOM AG were signed and subsequently ratified by the Greek Parliament with Law 3676/2008 (Greek Official Gazette 139/11.7.2008). Until today, the decisions of the European Competition Committee and of the National Competition Authorities concerning the compatibility of concentration and the non impediment to competition in the relative markets, are pending, and which are required in order for the above-mentioned agreement to come into force.
Credit risk is the risk of financial loss to the Group if a counterparty fails to meet its contractual obligations. Trade accounts receivable could potentially influence negatively the liquidity of the Group. Due to the large number and the diversification of the customer base there is no concentration of credit risk with respect to these receivables. Concentration of credit risk is identified in the receivables from telecommunication operators due to the small number and the significant amount. The Company and the Group have established specific credit policies under which each customer is analyzed for creditworthiness and an effective management of receivables before they become overdue but much more after they become overdue and doubtful. In monitoring credit risk, customers are grouped according to the category they belong to, their credit characteristics, aging profile and existence of previous financial difficulties. Customers that are characterized as doubtful are reassessed at each balance sheet date and a provision for doubtful accounts is recorded for the estimated loss.
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. Liquidity risk is kept at low levels by ensuring that there is sufficient cash on demand and credit facilities to meet the financial obligations when due. For the monitoring of liquidity risk, the Group prepares annual cash flows when preparing the annual budget and monthly rolling forecasts for three months' cash flows, in order to ensure that it has sufficient cash reserves to service its financial obligations.
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Group's results or the value of its financial instruments. The objective of market risk management is to manage and control exposure within acceptable levels while optimizing the return on risk.
Interest rate risk is the risk that payments for interest on loans fluctuate due to changes in interest rates. Interest rate risk mainly applies to long-term loans with floating interest rates.
The hedging of interest rate risk is managed through interest rate swap agreements in order to minimize the cost of borrowing at fixed interest rates and the hedging of favorable interest rates for the remaining duration of the loans commitments depending on the market conditions at each time.
Currency risk is the risk that the fair values or the cash flows of a financial instrument fluctuate due to foreign currency changes.
The Group operates in many Southeastern European countries and, as a result, is exposed to currency risk due to changes in currencies other than Euro. In the Group's major foreign investment in ROMTELECOM, the currency risk is compensated mainly through charging telecommunication fees directly in Euro, hence providing a natural hedge.
OTE's related parties are its subsidiaries, the members of its Board of Directors and the key management personnel of the Company.
The Company purchases goods and services from the related entities, provides goods and services to them, grants and obtains loans and finally receives dividends.
OTE's purchases and sales with its related parties are analyzed as follows:
| st Half 2008 1 |
1 | st Half 2007 | |||
|---|---|---|---|---|---|
| (in millions of Euro) | ΟΤΕ's sales |
ΟΤΕ's purchases |
OTE's sales |
ΟΤΕ's purchases |
|
| COSMOTE | 87.5 | 59.7 | 89.1 | 65.1 | |
| OTE INTERNATIONAL | |||||
| INVESTMENTS | 0.2 | 2.7 | 0.2 | 3.0 | |
| ROMTELECOM | - | - | 0.6 | - | |
| HELLAS-SAT | 0.3 | 0.8 | 0.3 | 0.8 | |
| COSMO-ONE | - | 0.4 | - | 0.4 | |
| VOICENET | 2.6 | 0.8 | 2.2 | 0.3 | |
| HELLASCOM | 0.1 | 3.9 | - | 3.3 | |
| OTE SAT – MARITEL | 0.4 | 0.9 | 0.5 | 1.0 | |
| ΟΤΕ PLUS | 0.2 | 18.6 | 0.1 | 14.1 | |
| ΟΤΕ ΑΚΙΝΗΤΑ |
1.4 | 30.9 | 1.3 | 28.6 | |
| INFOTE | - | - | 2.5 | 0.3 | |
| OTE-GLOBE | 13.7 | 33.0 | 5.6 | 31.3 | |
| OTE ACADEMY | 0.1 | 2.2 | 0.1 | 3.0 | |
| 106.5 | 153.9 | 102.5 | 151.2 |
OTE's interest income and interest expense with its related parties are analyzed as follows:
| 1 | st Half 2008 | st Half 2007 1 |
|||
|---|---|---|---|---|---|
| (in millions of Euro) | OTE' s interest income |
ΟΤΕ's interest expense |
ΟΤΕ's interest income |
ΟΤΕ's interest expense |
|
| COSMOFON | 0.9 | - | 1.8 | - | |
| OTE Plc | 1.7 | 86.2 | 1.0 | 32.2 | |
| 2.6 | 86.2 | 2.8 | 32.2 |
OTE's revenues from dividends from its related parties, are analyzed as follows:
| (in millions of Euro) | st Half 2008 1 |
1st Half 2007 |
|---|---|---|
| COSMOTE | 245.2 | 163.2 |
| OTE ESTATE | 30.3 | - |
| OTE SAT- MARITEL | 0.5 | - |
| OTE INTERNATIONAL | ||
| INVESTMENTS LTD | - | 48.0 |
| INFOTE | - | 5.0 |
| 276.0 | 216.2 |
OTE's receivables and payables with its related parties resulting from operating transactions, are analyzed as follows:
| 30/6/2008 | 31/12/2007 | ||||
|---|---|---|---|---|---|
| (in millions of Euro) | ΟΤΕ's receivables |
ΟΤΕ's payables |
ΟΤΕ's receivables |
ΟΤΕ's payables |
|
| COSMOTE | 32.2 | 31.9 | 39.4 | 34.4 | |
| OTE INTERNATIONAL | |||||
| INVESTMENTS LTD | 0.2 | 1.0 | 0.2 | 1.4 | |
| HELLAS-SAT | 4.4 | 0.8 | 4,6 | 0.6 | |
| COSMO-ONE | - | 0.7 | - | 0.2 | |
| VOICENET | 1.7 | 0.3 | 0.1 | 0.1 | |
| HELLASCOM | - | 3.1 | - | 1.4 | |
| OTE SAT- MARITEL | 1.0 | 0.5 | 0.3 | 0.5 | |
| ΟΤΕ PLUS | 0.1 | 14.7 | 0.8 | 12.8 | |
| ΟΤΕ ESTATE | 2.5 | 15.8 | 3.1 | 31.7 | |
| OTE GLOBE | 22.4 | 34.4 | 49.4 | 73.2 | |
| OTE ACADEMY | - | 0.3 | 0.5 | 0.8 | |
| 64.5 | 103.5 | 98.4 | 157.1 |
OTE's receivables and payables with its related parties from loans granted and received, are analyzed as follows:
| 30/6/2008 | 31/12/2007 ΟΤΕ's |
||||
|---|---|---|---|---|---|
| (in millions of Euro) | ΟΤΕ's receivables |
ΟΤΕ's payables |
ΟΤΕ's payables |
||
| COSMOFON | 51.5 | - | 51.8 | - | |
| OTE Plc | 35.4 | 3,454.8 | 35.4 | 2,787.0 | |
| 86.9 | 3,454.8 | 87.2 | 2,787.0 |
OTE's receivables from dividends with its related parties are analyzed as follows:
| (in millions of Euro) | 30/6/2008 | 31/12/2007 |
|---|---|---|
| COSMOTE | 245.2 | - |
| ΟΤΕ ΑΚΙΝΗΤΑ |
30.3 | - |
| OTE SAT – MARITEL | 0.5 | - |
| 276.0 | - |
Fees paid to the members of the Board of Directors and key management personnel compensation charged in the Income Statements of the 1st half of 2008 and the 1st half of 2007, amounted to Euro 2.7 million and Euro 2.7 million, respectively.
The most significant events after the balance sheet date (30 June 2008) to the date that the Financial Statements are approved by the Board of Directors are analyzed in Note 19 to the Financial Statements.
Maroussi, 27 August 2008
Panagis Vourloumis Chairman and Managing Director
ERNST & YOUNG (HELLAS) Certified Auditors – Certified Auditors – Accountants S.A. Accountants S.A. Accountants S.A. 11th Km National Road Athens-Lamia 144 51 Athens, Greece
Tel: +30 210.2886.000 Fax: +30 210.2886.905 www.ey.com/eyse
We have reviewed the accompanying consolidated balance sheet of HELLENIC TELECOMMUNICATIONS ORGANIZATION S.A. ("the Company") and its subsidiaries ("the Group") and the Company's accompanying separate balance sheet as at 30 June 2008, and the related consolidated and separate income statements, statements of changes in equity, and cash flow statements for the six month period then ended, as well as the selected explanatory notes which is an integral part of the six-month financial report of article 5 L. 3556/2007. Management is responsible for the preparation and presentation of this interim financial information in accordance with International Financial Reporting Standards as adopted by the European Union and applicable to interim financial reporting ("IAS 34"). Our responsibility is to express a conclusion on this interim condensed financial information based on our review.
We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" to which the Greek Auditing Standards refer to. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Greek Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial information is not prepared, in all material respects, in accordance with IAS 34.
In addition to the interim financial information referred to above, we have reviewed the remaining information contained in the six-month financial report prepared in accordance with article 5 Law 3556/2007 and the Hellenic Capital Markets Commission Rules issued pursuant to this Law. Based on our review, the aforementioned report incorporates the information required by the Law and the Rules and is consistent with the accompanying financial information.
Athens, 27 August 2008
The Certified Auditors Accountants
CHRIS PELENDRIDIS THEMISTOKLIS LIANOPOULOS R.N. ICA (GR) 17831 R.N. ICA (GR) 13771
ERNST &YOUNG (HELLAS) CERTIFIED AUDITORS ACCOUNTANTS S.A. SOEL REG. No. 107
The Interim Condensed Financial Statements presented on pages 16 – 42, were approved by the Board of Directors on 27 August 2008 and are signed on its behalf by:
| Chairman | |||
|---|---|---|---|
| & Managing Director | Vice Chairman | Chief Financial Officer | Chief Accounting Officer |
Panagis Vourloumis George Bitros Christini Spanoudaki Konstantinos Vasilopoulos
HELLENIC TELECOMMUNICATIONS ORGANIZATION S.A. REGISTRATION No S.A. 347/06/Β/86/10 99 KIFFISIAS AVE–151 24 MAROUSSI ATHENS, GREECE
| INTERIM INCOME STATEMENTS (SEPARATE AND CONSOLIDATED) 19 (SEPARATE AND INTERIM STATEMENTS OF CHANGES IN EQUITY CONSOLIDATED) 21 INTERIM STATEMENTS OF CASH FLOW (SEPARATE AND CONSOLIDATED) 23 NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS 24 1. COMPANY'S FORMATION AND OPERATIONS 25 2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS |
|---|
| 26 3. SIGNIFICANT ACCOUNTING POLICIES |
| 27 4. INVESTMENTS |
| 29 5. SHARE CAPITAL |
| 30 6. DIVIDENDS |
| 30 7. LONG-TERM BORROWINGS |
| 31 8. SHORT-TERM BORROWINGS |
| 31 9. INCOME TAXES |
| 33 10. REVENUES |
| 34 11. COST OF EARLY RETIREMENT PROGRAM |
| 35 12. OTHER OPERATING EXPENSES |
| 36 13. SEGMENT REPORTING |
| 37 14. EARNINGS PER SHARE |
| 38 15. RELATED PARTY TRANSACTIONS |
| 40 16. STOCK BASED COMPENSATION |
| 40 17. LITIGATION AND CLAIMS |
| 40 18. ADJUSTMENTS AND RECLASSIFICATIONS |
| 42 19. SUBSEQUENT EVENTS |
| (Amounts in millions of Euro) | 30 JUNE 2008 | 31 DECEMBER 2007 | |||
|---|---|---|---|---|---|
| Notes | COMPANY | GROUP | COMPANY (*) | GROUP | |
| ASSETS | |||||
| Non - current assets: | |||||
| Property, plant and equipment | 2,248.3 | 6.176,7 | 2,372.2 | 6,371.4 | |
| Goodwill | - | 531,2 | - | 541.5 | |
| Telecommunication licenses | 3.2 | 376,4 | 3.4 | 396.2 | |
| Investments | 4 | 4,887.9 | 158,2 | 4,042.4 | 158.4 |
| Loans and advances to pension funds | 214.9 | 214,9 | 229.8 | 229.8 | |
| Deferred income taxes | 161.7 | 92,7 | 158.7 | 94.6 | |
| Other non-current assets | 108.9 | 678,5 | 98.4 | 678.6 | |
| Total non - current assets | 7,624.9 | 8.228,6 | 6,904.9 | 8,470.5 | |
| Current assets: | |||||
| Inventories | 23.2 | 192.0 | 37.1 | 201.7 | |
| Trade accounts receivable | 754.2 | 1,274.6 | 742.4 | 1,172.0 | |
| Other current assets | 462.4 | 366.0 | 217.1 | 372.5 | |
| Cash and cash equivalents | 450.2 | 1,456.4 | 459.2 | 1,316.3 | |
| Total current assets | 1,690.0 | 3,289.0 | 1,455.8 | 3,062.5 | |
| TOTAL ASSETS | 9,314.9 | 11,517.6 | 8,360.7 | 11,533.0 | |
| EQUITY AND LIABILITIES | |||||
| Equity attributable to equity holders of the parent: | |||||
| Share capital | 5 | 1,171.5 | 1,171.5 | 1,171.5 | 1,171.5 |
| Share premium | 16 | 488.9 | 488.9 | 485.9 | 485.9 |
| Statutory reserve | 312.1 | 312.1 | 312.1 | 312.1 | |
| Consolidation reserve | - | (3,311.2) | - | (2,533.8) | |
| Retained earnings | 1,533.2 | 2,478.0 | 1,579.5 | 2,595.8 | |
| 3,505.7 | 1,139.3 | 3,549.0 | 2,031.5 | ||
| Minority interests | - | 940.3 | - | 1,023.1 | |
| Total equity | 3,505.7 | 2,079.6 | 3,549.0 | 3,054.6 | |
| Non – current liabilities: | |||||
| Long-term borrowings | 7 | 3,374.9 | 6,024.6 | 1,285.2 | 3,947.1 |
| Provision for staff retirement indemnities | 221.5 | 240.0 | 212.4 | 230.3 | |
| Cost of voluntary retirement scheme | 222.1 | 222.1 | 217.5 | 217.5 | |
| Provision for Youth account | 270.2 | 270.2 | 273.5 | 273.5 | |
| Other non – current liabilities | 45.2 | 241.1 | 41.4 | 233.6 | |
| Total non – current liabilities | 4,133.9 | 6,998.0 | 2,030.0 | 4,902.0 | |
| Current liabilities: | |||||
| Trade accounts payable | 503.8 | 833.7 | 596.1 | 931.5 | |
| Short-term borrowings | 8 | - | 4.8 | 1,494.2 | 1,497.4 |
| Short-term portion of long-term borrowings | 7 | 17.5 | 34.4 | 17.5 | 83.3 |
| Income tax | 45.5 | 138.1 | 23.6 | 83.0 | |
| Deferred revenue | 137.0 | 216.0 | 136.1 | 189.2 | |
| Cost for voluntary retirement scheme | 172.3 | 172.3 | 200.2 | 200.2 | |
| Dividends payable | 6 | 370.6 | 370.6 | 4.0 | 4.0 |
| Other current liabilities | 428.6 | 670.1 | 310.0 | 587.8 | |
| Total current liabilities | 1,675.3 | 2,440.0 | 2,781.7 | 3,576.4 | |
| TOTAL EQUITY AND LIABILITIES | 9,314.9 | 11,517.6 | 8,360.7 | 11,533.0 |
The accompanying Notes on pages 24 – 42 form an integral part of these Interim Condensed Financial Statements.
(*) Amounts adjusted due to the merger, by absorption, of OTENET by OTE (see Note 18)
Six Months Financial Report INTERIM INCOME STATEMENTS (SEPARATE) FOR THE THREE MONTH AND SIX MONTH PERIODS ENDED 30 JUNE 2008
| 2008 | 2007 (*) | |||||
|---|---|---|---|---|---|---|
| Notes | 2nd Quarter | st Half 1 |
nd Quarter 2 |
st Half 1 |
||
| (Amounts in millions of Euro, except per share data) | ||||||
| Revenues: | ||||||
| Domestic telephony | 10 | 344.6 | 693.7 | 380.4 | 764.4 | |
| International telephony | 10 | 50.5 | 103.4 | 51.5 | 92.2 | |
| Other revenues | 10 | 251.7 | 487.7 | 232.6 | 474.8 | |
| Total revenues | 646.8 | 1,284.8 | 664.5 | 1,331.4 | ||
| Operating expenses: | ||||||
| Payroll and employee benefits | (192.3) | (372.5) | (187.1) | (370.0) | ||
| Cost of early retirement program | 11 | - | (12.2) | - | (22.1) | |
| Charges from international operators | (30.8) | (60.1) | (38.2) | (73.2) | ||
| Charges from domestic operators | (75.7) | (147.9) | (83.1) | (161.3) | ||
| Depreciation and amortization | (117.7) | (239.2) | (127.6) | (258.9) | ||
| Cost of telecommunications equipment | (26.0) | (47.3) | (28.9) | (49.9) | ||
| Other operating expenses | 12 | (116.8) | (228.6) | (127.7) | (249.2) | |
| Total operating expenses | (559.3) | (1,107.8) | (592.6) | (1,184.6) | ||
| Operating income before financial results | 87.5 | 177.0 | 71.9 | 146.8 | ||
| Financial results: | ||||||
| Interest expense | (48.0) | (101.0) | (19.6) | (41.2) | ||
| Interest income | 9.2 | 18.3 | 12.4 | 23.7 | ||
| Foreign exchange differences, net | (1.2) | (0.7) | (1.0) | (1.3) | ||
| Dividend income | 4 | 288.1 | 288.1 | 232.6 | 232.6 | |
| Gains/(losses) from investments | 0.5 | (1.0) | - | 5.8 | ||
| 248.6 | 203.7 | 224.4 | 219.6 | |||
| Profit before income taxes | 336.1 | 380.7 | 296.3 | 366.4 | ||
| Income taxes | (22.9) | (38.8) | (36.9) | (57.8) | ||
| Net profit for the period | 313.2 | 341.9 | 259.4 | 308.6 | ||
| Basic earnings per share Diluted earnings per share |
14 14 |
0.6389 0.6349 |
0.6976 0.6931 |
0.5292 0.5292 |
0.6296 0.6296 |
The accompanying Notes on pages 24 – 42 form an integral part of these Interim Condensed Financial Statements.
(*)Amounts adjusted due to the merger, by absorption, of OTENET by OTE (see Note 18)
| 2008 | 2007 | ||||
|---|---|---|---|---|---|
| Notes | 2nd Quarter | st Half 1 |
nd Quarter 2 |
st Half 1 |
|
| (Amounts in millions of Euro, except per share data) | |||||
| Revenues: | |||||
| Domestic telephony | 10 | 462.3 | 928.3 | 516.5 | 1,043.3 |
| International telephony | 10 | 70.8 | 149.7 | 77.4 | 148.1 |
| Mobile telephony | 10 | 603.0 | 1,162.8 | 551.0 | 1,045.3 |
| Other revenues | 10 | 454.4 | 887.2 | 406.4 | 823.2 |
| Total revenues | 1,590.5 | 3,128.0 | 1,551.3 | 3,059.9 | |
| Operating expenses: | |||||
| Payroll and employee benefits | (319.7) | (620.2) | (317.6) | (619.3) | |
| Cost of early retirement program | 11 | (3.0) | (44.8) | - | (22.1) |
| Charges from international operators | (45.4) | (93.5) | (56.7) | (104.5) | |
| Charges from domestic operators | (159.7) | (315.3) | (165.5) | (319.0) | |
| Depreciation and amortization | (290.5) | (584.8) | (291.5) | (570.8) | |
| Cost of telecommunications equipment | (157.0) | (310.3) | (145.2) | (298.1) | |
| Other operating expenses | 12 | (326.9) | (631.3) | (322.0) | (613.0) |
| Total operating expenses | (1,302.2) | (2,600.2) | (1,298.5) | (2,546.8) | |
| Operating income before financial results | 288.3 | 527.8 | 252.8 | 513.1 | |
| Financial results: | |||||
| Interest expense | (79.1) | (166.2) | (49.4) | (106.8) | |
| Interest income | 21.5 | 40.0 | 20.6 | 40.4 | |
| Foreign exchange differences, net | 1.3 | 7.1 | 16.9 | 22.7 | |
| Dividend income | 4 | 12.1 | 12.1 | 16.4 | 16.4 |
| Gains from investments | 3.4 | 17.2 | 0.1 | 12.8 | |
| (40.8) | (89.8) | 4.6 | (14.5) | ||
| Profit before income taxes | 247.5 | 438.0 | 257.4 | 498.6 | |
| Income taxes | (87.0) | (140.6) | (84.9) | (148.4) | |
| Net profit for the period | 160.5 | 297.4 | 172.5 | 350.2 | |
| Attributable to: | |||||
| Equity holders of the parent | 159.3 | 300.4 | 136.6 | 277.5 | |
| Minority interest | 1.2 | (3.0) | 35.9 | 72.7 | |
| 160.5 | 297.4 | 172.5 | 350.2 | ||
| Basic earnings per share Diluted earnings per share |
14 14 |
0.3250 0.3229 |
0.6129 0.6090 |
0.2786 0.2786 |
0.5661 0.5661 |
The accompanying Notes on pages 24 – 42 form an integral part of these Interim Condensed Financial Statements.
| ( Am l l f ) in i ion Eu nts ou m s o ro |
|||||
|---|---|---|---|---|---|
| S ha re Ca ita l p |
S ium ha Pr re em |
Sta tut or y Re ser ve |
ine Re d ta Ea ing rn s |
To l ta ity eq u |
|
| Ba lan 3 1 De be 2 0 0 6 ( *) at ce cem r |
1, 1 7 1. 5 |
4 8 5. 9 |
2 8 3. 3 |
1, 2 9 7. 1 |
3, 2 3 7. 8 |
| D iv i de ds de lar d n c e |
- | - | - | ( 2 6 9. 6 ) |
( 2 6 9. 6 ) |
| Un l ize d g ins i la b le- for rea a on av a le it ies sa sec ur |
- | - | - | 6. 5 |
6. 5 |
| Ne inc ize d d ire ly in t ct om e r eco g n Eq ity u |
- | - | - | 6. 5 |
6. 5 |
| f it for he io d Pro t p er |
- | - | - | 3 0 8. 6 |
3 0 8. 6 |
| Ba lan 3 0 Ju 2 0 0 7 ( *) at ce ne |
1, 1 7 1. 5 |
4 8 5. 9 |
2 8 3. 3 |
1, 3 4 2. 6 |
3, 2 8 3. 3 |
| Ba lan 3 1 De be 2 0 0 7 ( *) at ce cem r |
1, 1 7 1. 5 |
4 8 5. 9 |
3 1 2. 1 |
1, 5 7 9. 5 |
3, 5 4 9. 0 |
| iv i de ds de lar d D n c e |
- | - | - | ( 3 6 6 ) 7. |
( 3 6 6 ) 7. |
| Sto k o ion t c p s p rog ram l ize d los i la b le- for Un |
- | 3. 0 |
- | - | 3. 0 |
| rea ses on av a - le it ies sa sec ur |
- | - | - | 6 ( 2 0. ) |
6 ( 2 0. ) |
| Ne inc ize d d ire ly in t ct om e r eco g n ity Eq u |
- | - | - | ( 2 0. 6 ) |
( 2 0. 6 ) |
| f it for he io d Pro t p er |
- | - | - | 3 4 1. 9 |
3 4 1. 9 |
| Ba lan 3 0 Ju 2 0 0 8 at ce ne |
1, 1 7 1. 5 |
4 8 8. 9 |
3 1 2. 1 |
1, 5 3 3. 2 |
3, 5 0 5. 7 |
The accompanying notes on pages 24 – 42 form an integral part of these Interim Condensed Financial Statements.
(*)Amounts adjusted due to the merger, by absorption, of OTENET by OTE (see Note 18)
| ( Am in i l l ion f Eu ) nts s o ou m ro |
At i ity f t tr bu ta b le to ho l de he nt eq rs o p are u |
|||||||
|---|---|---|---|---|---|---|---|---|
| S ha re Ca ita l p |
S ha re Pr ium em |
Sta tut or y Re ser ve |
Co l i da ion t ns o Re ser ve |
Re ine d ta Ea ing rn s |
To l ta |
M ino ity r Int st ere |
To l e ity ta q u |
|
| Ba lan 3 1 De be 2 0 0 6 at ce cem r |
1, 1 7 1. 5 |
4 8 5. 9 |
2 8 3. 3 |
( 5 8 0. 3 ) |
2, 3 0 4. 4 |
3, 6 6 4. 8 |
1, 2 2 3. 9 |
4, 8 8 8. 7 |
| D iv i de ds de lar d n c e |
- | - | - | ( 2 6 9. 6 ) |
( 2 6 9. 6 ) |
( 8 1. 2 ) |
( 3 5 0. 8 ) |
|
| Ne ha f int in bs i d iar ies t c st ng e o ere su Un l ize d g ins i la b le- for rea a on av a |
- | - | - | - | - | 6. 0 |
6. 0 |
|
| le it ies sa sec ur |
- | - | - | 6. 5 |
6. 5 |
- | 6. 5 |
|
| Fo ig lat ion tra re n c urr en cy ns |
- | - | - | 8 4. 1 |
8 4. 1 |
6 7. 4 |
1 5 1. 5 |
|
| Ne inc ize d d ire ly in ity t ct om e r eco g n eq u |
- | - | - | 9 0. 6 |
9 0. 6 |
6 7. 4 |
1 5 8. 0 |
|
| f it for he io d Pro t p er |
- | - | - | 2 5 7 7. |
2 5 7 7. |
2. 7 7 |
3 5 0. 2 |
|
| Ba lan 3 0 Ju 2 0 0 7 at ce ne |
1, 1 7 1. 5 |
4 8 5. 9 |
2 8 3. 3 |
( 5 8 0. 3 ) |
2, 4 0 2. 9 |
3, 7 6 3. 3 |
1, 2 8 8. 8 |
5, 0 5 2. 1 |
| Ba lan 3 1 De be 2 0 0 7 at ce cem r |
1, 1 7 1. 5 |
4 8 5. 9 |
3 1 2. 1 |
( 2, 5 3 3. 8 ) |
2, 5 9 5. 8 |
2, 0 3 1. 5 |
1, 0 2 3. 1 |
3, 0 5 4. 6 |
| D iv i de ds de lar d n c e |
- | - | - | - | ( 3 6 7. 6 ) |
( 3 6 7. 6 ) |
- | ( 3 6 7. 6 ) |
| ha f int in bs i d iar ies Ne t c st ng e o ere su |
- | - | - | ( 4 ) 7 7 7. |
- | ( 4 ) 7 7 7. |
( 6 5. 8 ) |
( 8 4 3. 2 ) |
| Sto k o ion t c p s p rog ram |
- | 3. 0 |
- | - | - | 3. 0 |
- | 3. 0 |
| l ize d los i la b le- for Un rea ses on av a - |
||||||||
| le it ies s a sec ur |
- | - | - | - | 6 ( 2 0. ) |
6 ( 2 0. ) |
- | 6 ( 2 0. ) |
| ig lat ion Fo tra re n c urr en cy ns |
- | - | - | - | ( 3 0. 0 ) |
( 3 0. 0 ) |
( 1 4. 0 ) |
( 4 4. 0 ) |
| Ne inc ize d d ire ly in ity t ct om e r eco g n eq u |
- | - | - | - | ( 5 0. 6 ) |
( 5 0. 6 ) |
( 1 4. 0 ) |
( 6 4. 6 ) |
| Pro f it for he io d t p er |
- | - | - | - | 3 0 0. 4 |
3 0 0. 4 |
( 3. 0 ) |
2 9 7. 4 |
| Ba lan 3 0 Ju 2 0 0 8 at ce ne |
1, 1 7 1. 5 |
4 8 8. 9 |
3 1 2. 1 |
( ) 3, 3 1 1. 2 |
2, 4 7 8. 0 |
1, 1 3 9. 3 |
9 4 0. 3 |
2, 0 7 9. 6 |
The accompanying Notes on pages 24 – 42 form an integral part of these Interim Condensed Financial Statements.
| 1/1/2008 - 30/6/2008 | 1/1/2007 - 30/6/2007 | ||||
|---|---|---|---|---|---|
| COMPANY | GROUP | COMPANY (*) | GROUP | ||
| (Amounts in millions of Euro) | |||||
| Cash flows from operating activities | |||||
| Profit before income taxes | 380.7 | 438.0 | 366.4 | 498.6 | |
| Adjustments for: | |||||
| Depreciation and amortization | 239.2 | 584.8 | 258.9 | 570.8 | |
| Cost of early retirement program | 12.2 | 44.8 | 22.1 | 22.1 | |
| Provisions | 73.9 | 92.5 | 82.9 | 104.4 | |
| Foreign exchange differences | 0.7 | (7.1) | 1.3 | (22.7) | |
| Investment and financial income | (305.4) | (69.3) | (262.1) | (69.6) | |
| Amortization of advances to pension funds | 17.6 | 17.6 | 17.6 | 17.6 | |
| Interest expense and related expenses | 101.0 | 166.2 | 41.2 | 106.8 | |
| Adjustments for working capital movements related to operating activities: |
|||||
| Decrease / (increase) in inventories | 13.9 | 9.7 | 10.9 | (17.0) | |
| Increase in accounts receivable | (30.7) | (169.6) | (96.8) | (119.9) | |
| Decrease in liabilities (except bank liabilities) | (116.0) | (169.1) | (256.4) | (257.0) | |
| Minus: | |||||
| Interest paid and related expenses paid | (30.1) | (91.3) | - | (78.2) | |
| Income taxes paid | (21.3) | (81.3) | (30.0) | (83.2) | |
| Net cash from operating activities | 335.7 | 765.9 | 156.0 | 672.7 | |
| Cash flows from investing activities | |||||
| Acquisition of subsidiary, associate, joint ventures and | |||||
| other investments | (848.9) | (848.9) | (1.0) | (31.1) | |
| Loans granted | (0.3) | (0.3) | (147.9) | (87.9) | |
| Purchase of property, plant and equipment and intangible | |||||
| assets | (116.0) | (375.0) | (112.7) | (467.3) | |
| Other long-term liabilities | - | - | - | 144.5 | |
| Proceeds from sale of investment | 2.5 | 5.1 | 5.8 | 34.8 | |
| Interest received | 13.7 | 26.4 | 16.8 | 27.4 | |
| Dividends received | 4.9 | 4.9 | 218.2 | 6.3 | |
| Net cash used in investing activities | (944.1) | (1.187.8) | (20.8) | (373.3) | |
| Cash flows from financing activities | |||||
| Proceeds from minority shareholders for issuance of | |||||
| subsidiary's share capital | - | 16.9 | - | 12.6 | |
| Proceeds from long-term and short-term borrowings | 2,700.0 | 2,701.3 | - | - | |
| Repayment of long-term and short-term borrowings | (2,100.0) | (2,155.4) | - | (528.7) | |
| Dividends paid | (0.6) | (0.8) | (0.9) | (82.5) | |
| Net cash from/(used in) financing activities | 599.4 | 562.0 | (0.9) | (598.6) | |
| Net increase / (decrease) in cash and cash equivalents | (9.0) | 140.1 | 134.3 | (299.2) | |
| Cash and cash equivalents at beginning of period | 459.2 | 1,316.3 | 824.6 | 2,042.5 | |
| Cash and cash equivalents at end of period | 450.2 | 1,456.4 | 958.9 | 1,743.3 |
The accompanying Notes on pages 24 – 42 form an integral part of these Interim Condensed Financial Statements.
(*)Amounts adjusted due to the merger, by absorption, of OTENET by OTE (see Note 18)
The Hellenic Telecommunications Organization S.A. (hereinafter referred to as the "Company" or "OTE"), was founded in 1949 and is registered with the Greek Register of Societe Anonymes (M.A.E.) under number 347/06/B/86/10.
OTE's registered office is located at 99 Kifissias Avenue – 151 24 Maroussi Athens, Greece, and its website is www.ote.gr.
OTE's main activities are to provide telecommunications and other related services.
The OTE Group of companies (hereinafter referred to as the "Group") comprises of companies where OTE has control either directly (subsidiaries) or indirectly (subsidiaries of its subsidiaries).
The Interim Condensed Separate and Consolidated Financial Statements (hereafter the «Financial Statements») for the six months ended 30 June 2008 were authorized for issue by the Board of Directors on 27 August 2008.
The number of employees of the Group and the Company as at 30 June 2008 was: Group: 33,062 (30 June 2007 : 33,334), Company: 12,123 (30 June 2007 : 11,940).
The subsidiaries which are included in the Group and have been included in the Consolidated Financial Statements by the full consolidation method and are the following:
| Company Name | Line of Business | Country | Ownership interest | |
|---|---|---|---|---|
| 30/6/2008 | 31/12/2007 | |||
| Direct ownership | ||||
| • COSMOTE MOBILE TELECOMMUNICATIONS |
||||
| S.A. ("COSMOTE") | Mobile telecommunications services | Greece | 100.00% | 90.72% |
| • OTE INTERNATIONAL INVESTMENTS LTD |
Investment holding company | Cyprus | 100.00% | 100.00% |
| • HELLAS SAT CONSORTIUM LIMITED |
||||
| («HELLAS-SAT") | Satellite communications | Cyprus | 99.05% | 99.05% |
| • COSMO-ONE HELLAS MARKET SITE S.A. |
||||
| ("COSMO-ONE") | E-commerce services | Greece | 61.74% | 58.87% |
| • OTENET S.A. ("OTEΝΕΤ") |
Internet services | Greece | - | 100.00% |
| • VOICENET A.E. ("VOICENET") |
Telecommunications services | Greece | 100.00% | 84.07% |
| • HELLASCOM S.A. ("HELLASCOM") |
Telecommunication projects | Greece | 100.00% | 100.00% |
| • OTE Plc |
Financing services | U.K. | 100.00% | 100.00% |
| • OTE SAT-MARITEL S.A. ("OTE SAT – MARITEL") |
Satellite telecommunications services | Greece | 94.08% | 94.08% |
| • OTE PLUS S.A ("OTE PLUS") |
Consulting services | Greece | 100.00% | 100.00% |
| • ΟΤΕ ESTATE S.A. ("ΟΤΕ ESTATE") |
Real estate | Greece | 100.00% | 100.00% |
| • OTE INTERNATIONAL SOLUTIONS S.A. |
||||
| (OTE-GLOBE") | Wholesale telephony services | Greece | 100.00% | 100.00% |
| • HATWAVE HELLENIC-AMERICAN |
||||
| TELECOMMUNICATIONS WAVE LTD. | ||||
| ("HATWAVE") | Investment holding company | Cyprus | 52.67% | 52.67% |
| • OTE INSURANCE AGENCY S.A. |
||||
| ("OTE INSURANCE") • |
Insurance brokerage services | Greece | 100.00% | 100.00% |
| ΟΤΕ ACADEMY S.A. ("OTE ACADEMY") | Training services | Greece | 100.00% | 100.00% |
| Company Name | Line of Business | Country | Ownership interest | ||
|---|---|---|---|---|---|
| 30/6/2008 | 31/12/2007 | ||||
| Indirect ownership | |||||
| • | ROMTELECOM S.A. ("ROMTELECOM) | Fixed line telephony services | Romania | 54.01% | 54.01% |
| • | S.C. COSMOTE ROMANIAN MOBILE | ||||
| TELECOMMUNICATIONS S.A. | |||||
| ("COSMOTE ROMANIA") | Mobile telecommunications services | Romania | 86.20% | 79.71% | |
| • | OTE MTS HOLDING B.V. | Investment holding company | Holland | 100.00% | 90.72% |
| • | COSMOFON MOBILE TELECOMMUNICATIONS | ||||
| SERVICES A.D. – SKOPJE ("COSMOFON") | Mobile telecommunications services | Skopje | 100.00% | 90.72% | |
| • | COSMO BULGARIA MOBILE EAD ("GLOBUL") | Mobile telecommunications services | Bulgaria | 100.00% | 90.72% |
| • | COSMO-HOLDING ALBANIA S.A. ("CHA") | Investment holding company | Greece | 97.00% | 88.00% |
| • | ALBANIAN MOBILE COMMUNICATIONS Sh.a | ||||
| ("AMC") | Mobile telecommunications services | Albania | 82.45% | 74.80% | |
| • | COSMOHOLDING CYPRUS LTD | ||||
| ("COSMOHOLDING CYPRUS") | Investment holding company | Cyprus | 90.00% | 81.65% | |
| • | GERMANOS S.A. | Retail services | Greece | 90.00% | 81.65% |
| • | E-VALUE S.A. | Marketing services | Greece | 90.00% | 81.65% |
| • | GERMANOS TELECOM SKOPJE S.A. | Retail services | Skopje | 90.00% | 81.65% |
| • | GERMANOS TELECOM ROMANIA S.A. | Retail services | Romania | 90.00% | 81.64% |
| • | SUNLIGHT ROMANIA S.R.L. -FILIALA | Retail services | Romania | 90.00% | 81.64% |
| • | TEL SIM S.R.L | Retail services | Romania | 90.00% | 81.65% |
| • | GERMANOS TELECOM BULGARIA A.D. | Retail services | Bulgaria | 90.00% | 81.65% |
| • | MOBILBEEEP LTD | Retail services | Greece | 90.00% | 81.65% |
| • | GRIGORIS MAVROMICHALIS & PARTNERS LTD | Retail services | Greece | 89.10% | 80.82% |
| • | ALBATROS & PARTNERS LTD | Retail services | Greece | 90.00% | 81.64% |
| • | ΟΤΕΝΕΤ CYPRUS LTD | Investment holding company | Cyprus | - | 76.33% |
| • | ΟΤΕΝΕΤ TELECOMMUNICATIONS LTD | Telecommunications services | Cyprus | - | 71.61% |
| • | HELLAS SAT S.A. | Satellite communications | Greece | 99.05% | 99.05% |
| • | ΟΤΕ INVESTMENT SERVICES S. A. | Investment holding company | Greece | 100.00% | 100.00% |
| • | OTE PLUS BULGARIA | Consulting services | Bulgaria | 100.00% | 100.00% |
| • | OTE PLUS ROMANIA | Consulting services | Romania | 100.00% | 100.00% |
The Financial Statements for the six months ended 30 June 2008 have been prepared in accordance with IAS 34 "Interim Financial Reporting".
These Interim Condensed Financial Statements do not include all the information required in the Annual Financial Statements and they should be read in conjunction with the annual audited financial statements as at 31 December 2007, which are available on the Company's website (www.ote.gr).
The Financial Statements have been prepared on the historical cost basis except for specific assets and liabilities which are measured at fair value. All amounts are presented in millions of Euro, except when otherwise indicated.
The significant accounting policies and accounting estimates adopted in the preparation of the Interim Condensed Financial Statements, are consistent with those followed in the preparation of the Annual Financial Statements as of 31 December 2007, except for the adoption of new Standards and Interpretations noted below, whose application did not have any effect on the financial position or performance of the Company or the Group.
• IFRIC 11 – IFRS 2 Group and Treasury Share Transactions.
The following interpretations are effective for financial periods beginning on or after 1 January 2008 and have not been endorsed yet by the EU. These interpretations are not expected to have significant effect on the Company's or the Group's financial statements:
The International Accounting Standards Board (IASB) and the IFRS Interpretations Committee (IFRIC) have issued a number of new Standards and Interpretations whose application is mandatory for the financial periods beginning on or after 1 January 2009 and which are disclosed together with management's assessment for their impact in the Annual Financial Statements as of 31 December 2007. New Standards and Interpretations issued subsequently (which have not yet been adopted by the Company or the Group), are:
IFRIC 16, "Hedges of a Net Investment in a Foreign Operation", was issued on 3 July 2008 and is effective for annual periods beginning on or after 1 October, 2008 and can be applied retrospectively or prospectively. IFRIC 16 clarifies three main issues, namely: - A presentation currency does not create an exposure to which an entity may apply hedge accounting. Consequently, a parent entity may designate as a hedged risk only the foreign exchange differences arising from a difference between its own functional currency and that of its foreign operation.
Hedging instrument(s) may be held by any entity or entities within the group.
While IAS 39, "Financial Instruments: Recognition and Measurement", must be applied to determine the amount that needs to be reclassified to profit or loss from the foreign currency translation reserve in respect of the hedging instrument, IAS 21 "The Effects of Changes in Foreign Exchange Rates" must be applied in respect of the hedged item.
The Group is in the process of assessing the impact of this Interpretation on its financial statements. This Interpretation has not yet been endorsed by the EU.
Transactions between companies under common control are excluded from the scope of IFRS 3. Therefore the Group (implementing the guidance of IAS 8 for similar cases) accounts for such transactions using a method like "pooling of interests". Based on this principle, the Group consolidates the book values of the combined entities (without valuation to fair values). The financial statements of the Group or the new entity after the transaction are prepared on the basis as if the new structure was in effect since the beginning of the first period which is presented in the financial statements and consequently the comparative figures are adjusted. The difference between the purchase price and the book value of the percentage of the net assets acquired is recognized directly in equity.
Investments are analyzed as follows:
| 30/6/2008 | 31/12/2007 | ||||
|---|---|---|---|---|---|
| COMPANY | GROUP | COMPANY (*) | GROUP | ||
| (a) Investments in | |||||
| subsidiaries | 4,730.1 | - | 3,884.6 | - | |
| (b) | Other investments | 157.8 | 158.2 | 157.8 | 158.4 |
| 4,887.9 | 158.2 | 4,042,4 | 158.4 |
(*)Amounts adjusted due to the merger, by absorption, of OTENET by OTE (see Note 18)
(a) Investments in subsidiaries are analyzed as follows:
| Company | Country | 30/6/2008 | 31/12/2007 (*) | |
|---|---|---|---|---|
| • | COSMOTE | Greece | 3,500.4 | 2,654.3 |
| • | OTE INTERNATIONAL | |||
| INVESTMENTS LTD | Cyprus | 497.9 | 497.9 | |
| • | HELLAS SAT CONSORTIUM | Cyprus | 194.7 | 194.7 |
| • | COSMO ONE | Greece | 3.2 | 3.2 |
| • | HELLASCOM | Greece | 8.4 | 8.4 |
| • | OTE SAT-MARITEL | Greece | 11.2 | 11.2 |
| • | ΟΤΕ PLUS | Greece | 3.8 | 3.8 |
| • | ΟΤΕ ESTATE | Greece | 336.3 | 336.3 |
| • | OTEGLOBE | Greece | 163.7 | 163.7 |
| • | OTE INSURANCE | Greece | 0.6 | 0.6 |
| • | OTE ACADEMY | Greece | 5.9 | 5.9 |
| • | VOICENET | Greece | 4.0 | 2.7 |
| • | OTENET KYΠΡΟΥ LTD | Cyprus | - | 1.6 |
| • | OTENET | |||
| TELECOMMUNICATIONS LTD | Cyprus | - | 0.3 | |
| 4,730.1 | 3,884.6 |
(*)Amounts adjusted due to the merger, by absorption, of OTENET by OTE (see Note 18)
On 9 November 2007, following authorization by the Board of Directors, ΟΤΕ announced the submission of a Public Tender Offer for the acquisition of the total outstanding common shares of COSMOTE for a price of Euro 26.25 (in absolute amount) per share.
As at 31 December 2007, OTE owned 303,725,198 shares, which represented approximately 90.72% of COSMOTE's share capital and voting rights.
The tender offer's acceptance period for the acquisition of COSMOTE's shares ended on 29 January 2008. During January 2008 and with the submission of acceptance applications by 5,044 shareholders, OTE acquired 27,503,293 shares of COSMOTE representing 8.187% of COSMOTE's share capital. As a result, on 29 January 2008, OTE held 331,228,491 shares representing 98.592% of COSMOTE's share capital with the corresponding voting rights.
According to Article 27 of Law 3461/2006 on 27 February 2008, OTE filed a request with the Hellenic Capital Market Commission seeking permission to exercise squeeze out rights on the remaining shares of COSMOTE at a price equal to that of the Public Offer, i.e. Euro 26.25 per share (in absolute amount) (Squeeze-Out Right). The remaining shareholders retained the right to sell their shares to the Proposing Party through the Stock Exchange within three months from the end of the acceptance period (Sell-Out Right). After the end of the exercise period of the Squeeze-Out Rights and of the Sell-Out Rights, OTE began the procedure for the delisting of the COSMOTE's shares from the Athens Stock Exchange and Global Depository Receipts (GDRs) from the London Stock Exchange (L.S.E.).
Since 9 April 2008, following OTE's Public Tender Offer for the acquisition of COSMOTE's shares and after the completion of exercise of the Squeeze-Out Rights and of the Sell-Out Rights, OTE holds 335,957,300 COSMOTE's shares, which represent the 100% of its share capital and voting rights.
On 11 April 2008, COSMOTE announced that pursuant to the decision of the Extraordinary General Assembly of its shareholders held on 10 April 2008, a request was submitted to the Hellenic Capital Market Commission, in accordance with par. 5 article 17 of Law 3371/2005, for the delisting of its shares from the Athens Stock Exchange. The request was approved by the Hellenic Capital Market Commission.
The amount of Euro 777.4 which resulted from the acquisition of COSMOTE's minority interests, was recognized directly in Equity in the Consolidated Financial Statements (in the line "Consolidation Reserve"), as it relates to the acquisition of minority in an entity where control already exists.
In May 2008, OTE announced the sale of the Group's investment in OTENET CYPRUS LTD and OTENET TELECOMMUNICATIONS LTD, which operate in the telecommunication and internet services section, to Cyprus Trading Corporation Plc (CTC), for a total consideration of approximately Euro 3.9.
On 19 March 2008 OTE and its subsidiary OTENET signed a Draft Merger Agreement whereby OTE would absorb OTENET. The above Agreement was approved by the Board of Directors of both parties and pursuant to article 7b of L. 2190/20 was deposited with the Greek Register of Societe Anonymes (M.A.E.). On 27 June 2008 the relevant Ministerial Decision which approved and concluded the procedure of OTENET's absorption by its parent, was deposited with the Societe Anonymes Register of the Prefecture of Athens.
In May 2008 OTE acquired the remaining interest in its subsidiary VOICENET from SANYO HELLAS S.A., for a consideration of Euro 1.3. Following the acquisition, OTE owns 100% of VOICENET's share capital and voting rights.
On 10 April 2008 OTE's subsidiary OTE ESTATE filed a request with the Hellenic Capital Market Commission for a licence for the operation of a Real Estate Investment Company.
OTE's other investments are analyzed as follows:
| 30/6/2008 | 31/12/2007 | |
|---|---|---|
| TELECOM SRBIJIA | 155.1 | 155.1 |
| Other | 2.7 | 2.7 |
| 157.8 | 157.8 |
Dividend income from investments is analyzed as follows:
| 2008 | 2007 | |||
|---|---|---|---|---|
| nd 2 |
st 1 |
nd 2 |
st 1 |
|
| Quarter | Half | Quarter | Half | |
| COSMOTE | 245.2 | 245.2 | 163.2 | 163.2 |
| ΟΤΕ ESTATE | 30.3 | 30.3 | - | - |
| OTESAT-MARITEL | 0.5 | 0.5 | - | - |
| OTE INTERNATIONAL | ||||
| INVESTMENTS LTD | - | - | 48.0 | 48.0 |
| INFOTE | - | - | 5.0 | 5.0 |
| TELEKOM SRBIJA | 11.2 | 11.2 | 15.7 | 15.7 |
| Other | 0.9 | 0.9 | 0.7 | 0.7 |
| 288.1 | 288.1 | 232.6 | 232.6 |
The amount of Euro 280.1 was not received by the period end and is included in "Other current assets" in OTE's Balance Sheet as at 30 June 2008.
| 2008 | 2007 | |||
|---|---|---|---|---|
| nd 2 Quarter |
st 1 Half |
nd 2 Quarter |
st 1 Half |
|
| TELEKOM SRBIJA | 11.2 | 11.2 | 15.7 | 15.7 |
| Other | 0.9 | 0.9 | 0.7 | 0.7 |
| 12.1 | 12.1 | 16.4 | 16.4 |
OTE's share capital as at 30 June 2008 and 31 December 2007 amounted to Euro 1,171.5, divided into 490,150,389 registered shares, with a nominal value of Euro 2.39 (in absolute amount) per share.
As at 30 June 2008 and as at 31 December 2007, the Hellenic State's direct participation was approximately 24.96% while together with D.E.K.A. S.A. its participation was 28.03%.
On 30 June 2008, OTE received notification from its shareholder DEUTSCHE TELEKOM AG, that its participation in OTE's share capital and total voting rights stands at 20.155308%, amounting to 98,791,324 shares with corresponding voting rights.
Under Greek corporate law, each year companies are generally required to declare from their statutory profits, dividends of at least 35% of the after-tax profits, after allowing for a statutory reserve.
OTE's General Assembly on 26 June 2008 approved the distribution of a total dividend from 2007 profits of Euro 367.6 or Euro 0.75 (in absolute amount) per share.
Long-term borrowings are analyzed as follows:
| 30/6/2008 | 31/12/2007 | ||
|---|---|---|---|
| COMPANY | |||
| (a) | Loan from European Investment Bank | 36.4 | 36.4 |
| (b) | Inter-company loans from ΟΤΕ Plc | 3,356.0 | 1,266.3 |
| Total long-term borrowings | 3,392.4 | 1,302.7 | |
| Short-term portion | (17.5) | (17.5) | |
| Long-term portion | 3,374.9 | 1,285.2 | |
| GROUP | |||
| (a) | Loan from European Investment Bank | 36.4 | 36.4 |
| (b) | Consortium loans | 500.0 | 500.0 |
| (c) | Global Medium Term Note Program | 5,453.4 | 3,360.4 |
| (d) | Other bank loans | 69.2 | 133.6 |
| Total long-term borrowings | 6,059.0 | 4,030.4 | |
| Short-term portion | (34.4) | (83.3) | |
| Long-term portion | 6,024.6 | 3,947.1 |
On 12 February 2008 OTE Plc completed the issuance of two bonds amounting to Euro 1,500 and Euro 600 under the Global Medium Term Note Programme, for the refinancing of the balance of the short-term loan which was obtained in November 2007 for the acquisition of COSMOTE's shares by OTE.
Specifically, OTE Plc issued:
The bond terms include a step-up clause according to the credit rating of OTE. The bond coupon could increase by 1.25% in the case that:
The coupon can increase once only during the whole bond duration and only for the period the credit rating of OTE remains at sub-investment grade.
The bonds also include a Change of Control clause applicable to OTE which is triggered if both of the following events occur:
In accordance with the terms and conditions of the bonds, in the event that the Change of Control clause is triggered, OTE Plc shall promptly give written notice to the bond holders who in turn shall have the option within 45 days to require OTE PLC to redeem the bonds (put option), at their principal amounts together with accrued interest up to the date of redemption. None of the above triggering events has occurred until the date of this report.
On 19 May 2008, Moody's down graded OTE's long-term rating from Baa1 to Baa2. According to several terms included in the agreement between the Greek State and DEUTSCHE TELEKOM A.G.. The Greek State's interest in OTE S.A. may potentially decrease below 20%. As a result, the Company's support by the Greek State was downgraded to "low" from "average". This modification resulted in the long-term rating being changed to Baa2. Since the Company's underlying business fundamentals and financial strength remain unchanged, the rest of the factors used to assess the Company's rating have remained unchanged.
On 9 November 2007, OTE Plc, under the full guarantee of OTE signed a short term credit facility agreement for an amount of Euro 2.7 billion with a consortium of banks, to finance the acquisition of the minority shares of COSMOTE by OTE. As at 31 December 2007 an amount of Euro 1.5 billion had been drawn-down.
During the first half of 2008 an additional amount of Euro 600 was drawn-down.
With the completion of the issuance of the two bonds amounting to Euro 1,500 and Euro 600 under the Global Medium Term Note Programme (See Note 7), the outstanding balance of the above mentioned short term credit facility was fully repaid.
After the repayment, the outstanding balance of Group's short-term borrowings as at 30 June 2008, amounted to Euro 4.8.
In accordance with the Greek tax regulations (Law 3296/2004), the income tax rate is 25% for 2007 and onwards.
The Company and its subsidiaries have not been audited by the tax authorities as described below and therefore their tax liabilities have not been finalized:
| Company Name | Unaudited Tax Years | |
|---|---|---|
| • | Full consolidation method (direct ownership) | |
| • | OTE | From 2006 |
| COSMOTE | From 2006 | |
| • | OTE INTERNATIONAL INVESTMENTS LTD | From 1998 |
| • | HELLAS SAT | From 2003 |
| • | COSMO-ONE | From 2002 |
| • | VOICENET | From 2004 |
| • | HELLASCOM | From 2006 |
| • | OTE Plc | From 2005 |
| • | OTE SAT-MARITEL | From 2004 |
| • | OTE PLUS | From 2005 |
| • | ΟΤΕ ESTATE | From 2001 |
| • | OTE GLOBE | From 2007 |
| • | OTE INSURANCE | From 2003 |
| • | OTE ACADEMY | From 2000 |
| • | HATWAVE | From 1996 |
| Company Name Full consolidation method (indirect ownership) |
Unaudited Tax Years | |
| • | OTE INVESTMENT SERVICES S.A. | From 2005 |
| • | ROMTELECOM | From 2006 |
| • | AMC | From 2006 |
| • | COSMOFON | From 2001 |
| • | GLOBUL | From 2005 |
| • | COSMOTE ROMANIA | From 2007 |
| • | GERMANOS | From 2004 |
| • | E-VALUE S.A. | From 2003 |
| • | GERMANOS TELECOM SKOPJE S.A. | From 2003 |
| • | GERMANOS TELECOM ROMANIA S.A. | From 2003 |
| • | SUNLIGHT ROMANIA S.R.L.-FILIALA | From 2001 |
| • | GERMANOS TELECOM BULGARIA A.D. | From 2005 |
| • | MOBILBEEEP LTD | From 2005 |
| • | GRIGORIS MAVROMICHALIS & PARTNERS LTD | From 2006 |
| • | ALBATROS & PARTNERS LTD | From 2006 |
| • | TEL SIM S.R.L | From 2007 (establishment) |
| • | HELLAS SAT S.A. | From 2002 |
| • | OTE MTS HOLDING B.V. | From 2001 |
| • | CHA | From 2007 |
| • | COSMO-HOLDING CYPRUS | From 2006 |
| • | OTE PLUS ROMANIA | -- |
• OTE PLUS BULGARIA Tax exemption
The tax audit of ROMTELECOM's books for the fiscal years 2001-2005 was completed in March 2008. Additional taxes of Euro 19.0 were imposed, which were netted-off against the respective provision which had been established in previous years, with no impact in the income statement of the first half of 2008.
During the second quarter of 2008 the tax audit for the fiscal years 2004-2006 in COSMOTE ROMANIA was completed, without any additional tax being imposed.
During the first semester of 2008 the tax audit for the fiscal years 2002-2006 in OTE GLOBE was started and completed. Additional taxes of Euro 0.6 were imposed, which were netted-off against the respective provision which had been established in previous years, with no impact in the income statement of the first half of 2008.
The tax audit of OTE ESTATE's books for the fiscal years 2001 and 2002 is in progress, and is expected to be completed within 2008.
The tax audit of OTE SAT - MARITEL's books for the fiscal years 2004 and 2005 is in progress and is expected to be completed within 2008.
The tax audit of HELLAS SAT's books for the fiscal years 2002 -2007 is in progress and is expected to be completed within 2008.
The tax audit of GERMANOS's books for the fiscal years 2004 and 2005 is in progress, and is expected to be completed within 2008.
The tax audit of E-VALUE S.A.'s books for the fiscal years 2003-2005 is in progress and is expected to be completed within 2008.
Revenues in the accompanying income statements consist of income from:
| 2008 | 2007 (*) | ||||
|---|---|---|---|---|---|
| nd 2 |
st 1 |
nd 2 |
st 1 |
||
| Quarter | Half | Quarter | Half | ||
| (i) Domestic Telephony | |||||
| • Monthly network service fees |
158.7 | 318.9 | 169.1 | 340.1 | |
| • Local and long-distance calls |
|||||
| - Fixed to fixed | 109.3 | 223.2 | 125.2 | 255.7 | |
| - Fixed to mobile | 58.8 | 116.0 | 67.8 | 133.3 | |
| 168.1 | 339.2 | 193.0 | 389.0 | ||
| • Other |
17.8 | 35.6 | 18.3 | 35.3 | |
| 344.6 | 693.7 | 380.4 | 764.4 | ||
| (ii) International Telephony | |||||
| • International traffic |
15.7 | 31.6 | 18.2 | 36.5 | |
| • Payments from international |
|||||
| operators | 20.5 | 46.3 | 22.0 | 35.1 | |
| • Payments from mobile |
|||||
| operators | 14.3 | 25.5 | 11.3 | 20.6 | |
| 50.5 | 103.4 | 51.5 | 92.2 | ||
| (iii) Other revenues | |||||
| • Prepaid cards |
11.6 | 21.3 | 16.8 | 32.8 | |
| • Telephone Directory Services |
2.3 | 3.0 | 0.3 | 0.8 | |
| • Leased lines and Data |
|||||
| communications / ATM | 58.6 | 111.4 | 52.1 | 118.6 | |
| • ISDN |
34.2 | 68.7 | 40.9 | 76.9 | |
| • Sales of telecommunication |
|||||
| equipment | 14.6 | 26.5 | 15.4 | 28.9 | |
| • Internet / ADSL |
38.4 | 78.3 | 33.9 | 69.7 | |
| • Services rendered |
53.7 | 104.9 | 38.9 | 74.1 | |
| • Interconnection charges |
29.3 | 58.3 | 26.5 | 54.8 | |
| • Miscellaneous |
9.0 | 15.3 | 7.8 | 18.2 | |
| 251.7 | 487.7 | 232.6 | 474.8 | ||
| Total revenues | 646.8 | 1,284.8 | 664.5 | 1,331.4 |
(*)Amounts adjusted due to the merger, by absorption, of OTENET by OTE (see Note 18)
| 2008 | 2007 | |||
|---|---|---|---|---|
| nd 2 |
st 1 |
nd 2 |
st 1 |
|
| Quarter | Half | Quarter | Half | |
| (i) Domestic Telephony • |
||||
| Monthly network service fees • |
232.5 | 465.5 | 248.9 | 503.0 |
| Local and long-distance calls | ||||
| - Fixed to fixed | 122.0 | 250.1 | 146.1 | 303.4 |
| - Fixed to mobile | 83.4 | 165.4 | 98.4 | 191.8 |
| • | 205.4 | 415.5 | 244.5 | 495.2 |
| Other | 24.4 | 47.3 | 23.1 | 45.1 |
| 462.3 | 928.3 | 516.5 | 1,043.3 | |
| (ii) International Telephony • |
||||
| International traffic | 23.5 | 47.3 | 27.6 | 55.0 |
| • Payments from international |
||||
| operators • |
31.8 | 74.8 | 37.7 | 70.9 |
| Payments from mobile | ||||
| operators | 15.5 | 27.6 | 12.1 | 22.2 |
| 70.8 | 149.7 | 77.4 | 148.1 | |
| (iii) Mobile Telephony | 603.0 | 1,162.8 | 551.0 | 1,045.3 |
| (iv) Other revenues | ||||
| • Prepaid cards |
13.3 | 25.0 | 19.9 | 39.7 |
| • Telephone Directory Services |
2.3 | 3.0 | 14.1 | 28.3 |
| • Leased lines and Data |
||||
| communications / ATM | 91.5 | 169.8 | 69.4 | 132.5 |
| • ISDN |
37.3 | 74.7 | 41.7 | 83.8 |
| • Sales of telecommunication |
||||
| equipment | 155.1 | 308.0 | 139.4 | 292.1 |
| • Internet / ADSL |
56.4 | 111.5 | 56.0 | 104.2 |
| • Services rendered |
44.4 | 83.8 | 20.3 | 43.0 |
| • Interconnection charges |
30.7 | 59.9 | 21.4 | 46.9 |
| • Miscellaneous |
23.4 | 51.5 | 24.2 | 52.7 |
| • | 454.4 | 887.2 | 406.4 | 823.2 |
| Total revenues | 1,590.5 | 3,128.0 | 1,551.3 | 3,059.9 |
On 28 February 2008, OTE's management and OME-OTE (the employee's union) signed a Collective Labor Agreement by which employees who are eligible to early retirement by 29 December 2008 can receive certain benefits if they leave by 30 December 2008. The right to file an irrevocable application for participation in the early retirement program ended on 21 March 2008. The total cost amounted to Euro 12.2 million and has been included in OTE's results for the first half of 2008. An additional amount of Euro 32.6 relating to the cost of early retirement program in ROMTELECOM, has also been included in the Group's income statement for the first half of 2008.
Other operating expenses are analyzed as follows:
| 2008 | 2007 (*) | |||
|---|---|---|---|---|
| nd 2 |
st 1 |
nd 2 |
st 1 |
|
| Quarter | Half | Quarter | Half | |
| Services and fees | 28.0 | 51.1 | 26.9 | 64.6 |
| Cost of telecommunication material, | ||||
| repairs and maintenance | 17.4 | 34.6 | 21.0 | 37.9 |
| Advertising costs | 13.8 | 26.2 | 14.8 | 25.8 |
| Utilities | 13.2 | 25.5 | 10.6 | 23.6 |
| Provision for doubtful accounts | 12.6 | 30.0 | 14.1 | 28.2 |
| Other provisions | - | - | 10.0 | 11.0 |
| Travel costs | 2.2 | 4.0 | 2.2 | 4.1 |
| Payments to audiοtex providers | 1.8 | 3.6 | 1.5 | 3.0 |
| Rent | 18.2 | 36.6 | 17.3 | 34.7 |
| Taxes, other than income taxes | 4.1 | 6.8 | 3.8 | 6.6 |
| Transportation | 1.5 | 2.5 | 1.5 | 2.6 |
| Other | 4.0 | 7.7 | 4.0 | 7.1 |
| 116.8 | 228.6 | 127.7 | 249.2 |
(*)Amounts adjusted due to the merger, by absorption, of OTENET by OTE (see Note 18)
| 2008 | 2007 | ||||
|---|---|---|---|---|---|
| nd 2 |
st 1 |
nd 2 |
st 1 |
||
| Quarter | Half | Quarter | Half | ||
| Services and fees | 46.1 | 90.8 | 40.5 | 81.4 | |
| Cost of telecommunication material, | |||||
| repairs and maintenance | 51.4 | 100.3 | 54.8 | 101.5 | |
| Advertising costs | 55.0 | 98.2 | 58.9 | 101.4 | |
| Utilities | 29.6 | 51.9 | 21.7 | 45.6 | |
| Provision for doubtful accounts | 22.4 | 47.9 | 20.8 | 43.9 | |
| Other provisions | - | - | 10.3 | 12.1 | |
| Travel costs | 4.8 | 8.7 | 5.0 | 9.1 | |
| Commissions to independent distributors | 55.3 | 120.6 | 48.1 | 104.2 | |
| Payments to audiοtex providers | 2.3 | 4.7 | 2.5 | 5.5 | |
| Rent | 22.2 | 47.1 | 21.6 | 42.4 | |
| Taxes, other than income taxes | 19.7 | 31.1 | 18.1 | 29.1 | |
| Transportation | 2.9 | 5.1 | 3.3 | 5.8 | |
| Other | 15.2 | 24.9 | 16.4 | 31.0 | |
| 326.9 | 631.3 | 322.0 | 613.0 |
The following information is provided for the reportable segments, which are separately disclosed in the financial statements and is regularly reviewed by the Group's chief operating decision makers.
Segments were determined based on the Group's legal structure, as the Group's chief operating decision makers review financial information separately reported by the parent company (OTE) and each of the Group's consolidated subsidiaries or sub-groups.
Using quantitative thresholds OTE, COSMOTE sub-group and ROMTELECOM, have been determined as reportable segments. Information about operating segments that do not constitute reportable segments have been combined and disclosed in an "All Other" category.
Accounting policies of the segments are the same as those followed for the preparation of the Consolidated Financial Statements. The Group evaluates segment performance based on operating income before depreciation and amortization, operating income and profit for the period.
Segment information and reconciliation to the Group's consolidated figures are as follows:
| Six months period | COSMOTE | ALL | ADJUSTMENTS | ||||
|---|---|---|---|---|---|---|---|
| ended 30/6/2008 | OTE | GROUP | ROMTELECOM | OTHER | TOTAL | ELIMINATIONS | GROUP |
| Revenues from | |||||||
| external customers | 1,178.3 | 1,448.0 | 433.1 | 68.6 | 3,128.0 | - | 3,128.0 |
| Intersegment | |||||||
| revenues | 106.5 | 93.5 | 9.3 | 118.1 | 327.4 | (327.4) | - |
| Total revenues | 1,284.8 | 1,541.5 | 442.4 | 186.7 | 3,455.4 | (327.4) | 3,128.0 |
| Operating expenses | (1,107.8) | (1,220.3) | (440.2) | (158.7) | (2,927.0) | 326.8 | (2,600.2) |
| Operating income | 177.0 | 321.2 | 2.2 | 28.0 | 528.4 | (0.6) | 527.8 |
| Operating income | |||||||
| before depreciation | |||||||
| and amortization | 416.3 | 523.2 | 124.4 | 50.0 | 1,113.9 | (1.3) | 1,112.6 |
| Profit/(loss) for the | |||||||
| period | 341.9 | 189.4 | (3.2) | 27.9 | 556.0 | (255.6) | 300.4 |
| Six months period | COSMOTE | ALL | ADJUSTMENTS | ||||
|---|---|---|---|---|---|---|---|
| ended 30/6/2007 | OTE(*) | GROUP | ROMTELECOM | OTHER(*) | TOTAL | ELIMINATIONS | GROUP |
| Revenues from | |||||||
| external customers | 1,225.2 | 1,336.2 | 425.7 | 72.8 | 3,059.9 | - | 3,059.9 |
| Intersegment | |||||||
| revenues | 106.2 | 89.8 | 13.7 | 98.9 | 308.6 | (308.6) | - |
| Total revenues | 1,331.4 | 1,426.0 | 439.4 | 171.7 | 3,368.5 | (308.6) | 3,059.9 |
| Operating expenses | (1,184.6) | (1,134.7) | (395.4) | (135.9) | (2,850.6) | 303.8 | (2,546.8) |
| Operating income | 146.8 | 291.3 | 44.0 | 35.8 | 517.9 | (4.8) | 513.1 |
| Operating income | |||||||
| before depreciation | |||||||
| and amortization | 405.7 | 463.6 | 164.6 | 51.4 | 1,085.3 | (1.4) | 1,083.9 |
| Profit for the period | 308.6 | 176.3 | 39.4 | 26.2 | 550.5 | (273.0) | 277.5 |
(*)Amounts adjusted due to the merger, by absorption, of OTENET by OTE (see Note 18)
Earnings per share (after income taxes,) are calculated by dividing the profit attributable to the shareholders of the Company by the weighted average number of shares outstanding during the period, excluding the average number of own shares that the Company possessed during the period and including (for the diluted earnings per share) the number of shares corresponding to the stock option rights granted.
Earnings per share are analyzed as follows:
| 2008 | 2007 (*) | ||||
|---|---|---|---|---|---|
| 2nd Quarter |
1st Half |
2nd Quarter |
1st Half |
||
| Earnings attributable to the | |||||
| shareholders of the parent | 313.2 | 341.9 | 259.4 | 308.6 | |
| Weighted average number of | |||||
| shares outstanding (for basic | |||||
| earnings per share) | 490,150,389 | 490,150,389 | 490,150,389 | 490,150,389 | |
| Stock option rights | 3,141,620 | 3,141,620 | - | - | |
| Weighted average number of | |||||
| shares outstanding (for diluted | |||||
| earnings per share) | 493,292,009 | 493,292,009 | 490,150,389 | 490,150,389 | |
| Basic earnings per share | 0.6389 | 0.6976 | 0.5292 | 0.6296 | |
| Diluted earnings per share | 0.6349 | 0.6931 | 0.5292 | 0.6296 |
(Earnings per share are in absolute amounts)
| 2008 | 2007 | |||
|---|---|---|---|---|
| 2nd | 1st | 2nd | 1st | |
| Quarter | Half | Quarter | Half | |
| Earnings attributable to the | ||||
| shareholders of the parent | 159.3 | 300.4 | 136.6 | 277.5 |
| Weighted average number of | ||||
| shares outstanding (for basic | ||||
| earnings per share) | 490,150,389 | 490,150,389 | 490,150,389 | 490,150,389 |
| Stock option rights | 3,141,620 | 3,141,620 | - | - |
| Weighted average number of | ||||
| shares outstanding (for diluted | ||||
| earnings per share) | 493,292,009 | 493,292,009 | 490,150,389 | 490,150,389 |
| Basic earnings per share | 0.3250 | 0.6129 | 0.2786 | 0.5661 |
| Diluted earnings per share | 0.3229 | 0.6090 | 0.2786 | 0.5661 |
(Earnings per share are in absolute amounts)
OTE's related parties are its subsidiaries, the members of its Board of Directors and the key management personnel of the Company.
The Company purchases goods and services from the related entities, provides goods and services to them, grants and obtains loans and finally receives dividends.
OTE 's purchases and sales transactions with its related parties, are analyzed as follows:
| 1 | st Half 2008 | st Half 2007 (*) 1 |
|||
|---|---|---|---|---|---|
| ΟΤΕ's sales |
ΟΤΕ's purchases |
OTE's sales |
ΟΤΕ's purchases |
||
| COSMOTE | 87.5 | 59.7 | 89.1 | 65.1 | |
| OTE INTERNATIONAL | |||||
| INVESTMENTS | 0.2 | 2.7 | 0.2 | 3.0 | |
| ROMTELECOM | - | - | 0.6 | - | |
| HELLAS-SAT | 0.3 | 0.8 | 0.3 | 0.8 | |
| COSMO-ONE | - | 0.4 | - | 0.4 | |
| VOICENET | 2.6 | 0.8 | 2.2 | 0.3 | |
| HELLASCOM | 0.1 | 3.9 | - | 3.3 | |
| OTE SAT – MARITEL | 0.4 | 0.9 | 0.5 | 1.0 | |
| ΟΤΕ PLUS | 0.2 | 18.6 | 0.1 | 14.1 | |
| ΟΤΕ ΑΚΙΝΗΤΑ |
1.4 | 30.9 | 1.3 | 28.6 | |
| INFOTE | - | - | 2.5 | 0.3 | |
| OTE-GLOBE | 13.7 | 33.0 | 5.6 | 31.3 | |
| OTE ACADEMY | 0.1 | 2.2 | 0.1 | 3.0 | |
| 106.5 | 153.9 | 102.5 | 151.2 |
(*)Amounts adjusted due to the merger, by absorption, of OTENET by OTE (see Note 18)
OTE 's interest income and interest expense with its related parties, are analyzed as follows:
| 1 | st Half 2008 | st Half 2007 1 |
|||
|---|---|---|---|---|---|
| OTE' s interest income |
ΟΤΕ's interest expense |
ΟΤΕ's interest income |
ΟΤΕ's interest expense |
||
| COSMOFON | 0.9 | - | 1.8 | - | |
| OTE Plc | 1.7 | 86.2 | 1.0 | 32.2 | |
| 2.6 | 86.2 | 2.8 | 32.2 |
OTE's revenues from dividends from its related parties, are analyzed as follows :
| st Half 2008 1 |
1st Half 2007 | |
|---|---|---|
| COSMOTE | 245.5 | 163.2 |
| OTE ESTATE | 30.3 | - |
| OTE SAT- MARITEL | 0.5 | - |
| OTE INTERNATIONAL | ||
| INVESTMENTS LTD | - | 48.0 |
| INFOTE | - | 5.0 |
| 276.0 | 216.2 |
OTE's receivables and payables with its related parties from their operating transactions, are analyzed as follows :
| 30/6/2008 | 31/12/2007 (*) | ||||
|---|---|---|---|---|---|
| ΟΤΕ's receivables |
ΟΤΕ's payables |
ΟΤΕ's receivables |
ΟΤΕ's payables |
||
| COSMOTE | 32.2 | 31.9 | 39.4 | 34.4 | |
| OTE INTERNATIONAL | |||||
| INVESTMENTS LTD | 0.2 | 1.0 | 0.2 | 1.4 | |
| HELLAS-SAT | 4.4 | 0.8 | 4,6 | 0.6 | |
| COSMO-ONE | - | 0.7 | - | 0.2 | |
| VOICENET | 1.7 | 0.3 | 0.1 | 0.1 | |
| HELLASCOM | - | 3.1 | - | 1.4 | |
| OTE SAT- MARITEL | 1.0 | 0.5 | 0.3 | 0.5 | |
| ΟΤΕ PLUS | 0.1 | 14.7 | 0.8 | 12.8 | |
| ΟΤΕ ESTATE | 2.5 | 15.8 | 3.1 | 31.7 | |
| OTE GLOBE | 22.4 | 34.4 | 49.4 | 73.2 | |
| OTE ACADEMY | - | 0.3 | 0.5 | 0.8 | |
| 64.5 | 103.5 | 98.4 | 157.1 |
(*)Amounts adjusted due to the merger, by absorption, of OTENET by OTE (see Note 18)
OTE's receivables and payables with its related parties from loans granted and received, are analyzed as follows:
| 30/6/2008 | 31/12/2007 | |||
|---|---|---|---|---|
| ΟΤΕ's receivables |
ΟΤΕ's payables |
ΟΤΕ's receivables |
ΟΤΕ's payables |
|
| COSMOFON | 51.5 | - | 51.8 | - |
| OTE Plc | 35.4 | 3,454.8 | 35.4 | 2,787.0 |
| 86.9 | 3,454.8 | 87.2 | 2,787.0 |
OTE's receivables from dividends with its related parties, are analyzed as follows
| 30/6/2008 | 31/12/2007 | |
|---|---|---|
| COSMOTE | 245.2 | - |
| ΟΤΕ ΑΚΙΝΗΤΑ |
30.3 | - |
| OTE SAT – MARITEL | 0.5 | - |
| 276.0 | - |
Fees paid to the members of the Board of Directors and key management personnel compensation charged in the Income Statements of the 1st half 2008 and 1st half 2007, amounted to Euro 2.7 and Euro 2.7, respectively.
Based on OTE's repeating General Assembly of 3 April 2007, the Board of Directors on 20 December 2007 approved the adoption of a management share option plan (the "Option Plan") based on performance conditions for OTE 's management personnel and directors of subsidiaries.
According to the Option Plan, participating employees are initially entitled to obtain a certain number of options ("Basic Option Rights"), while, in subsequent years, the Board may also grant to eligible employees further options ("Additional Option Rights").
The total number of the Basic Option Rights that have been granted to the beneficiaries is 3,141,620 rights.
The Option Rights are measured at their fair value at the date they are granted ("grant date"), using a Monte Carlo model. Key assumptions for the valuation of the fair value of options are:
The fair value is reflected in the income statement during the vesting period. An amount of Euro 3.0 was charged in the first half of 2008 income statement, with an equivalent increase in Share Premium.
There are no significant developments in the litigation and claims, as compared with the cases disclosed in the Notes to the 31 December 2007 financial statements. Appropriate provisions have been established in relation to litigation and claims, the outcome of which can be reasonably estimated and is expected to be unfavorable for the Company.
In the Company's Balance Sheet as at 31 December 2007 , an amount of Euro 35.0 concerning a loan granted by OTE to its subsidiary OTE Plc was reclassified from the line "Investments" to the line "Other Current Assets" for comparability purposes with the Company's Balance Sheet as at 30 June 2008.
In addition, due to OTENET' s merger by absorption by OTE, which was concluded on 27 June 2008, (see Note 4), the comparative Company's Financial Statements have been adjusted in order to be comparable with the Company's Financial Statements as of 30 June 2008.
These adjustments had no significant effect to the Company's Financial Statements, while there was no change to the comparable Consolidated Financial Ftatements, considering that OTENET was already consolidated as subsidiary.
Changes due to the adjustments that have occurred in basic lines of the comparable financial statements are presented at the tables below:
| ADJUSTED DATA | |
|---|---|
| 6,956.3 | 6,904.9 |
| 1,455.8 | |
| 8,383.5 | 8,360.7 |
| 3,549.0 | |
| 2,030.0 | |
| 2,781.7 | |
| 8,383.5 | 8,360.7 |
| Company's Balance Sheet as of 31/12/2007 REPORTED DATA 1,427.2 3,566.4 2,029.1 2,788.0 |
| Company's Income Statements | ||||
|---|---|---|---|---|
| REPORTED | ADJUSTED DATA | REPORTED | ADJUSTED DATA | |
| (Amounts in millions of Euro, | DATA | 01.01-30.06.2007 | DATA | 01.04-30.06.2007 |
| except per share data) | 01.01-30.06.2007 | 01.04-30.06.2007 | ||
| Total revenues | 1,318.4 | 1,331.4 | 657.5 | 664.5 |
| Total operating expenses | (1,171.3) | (1,184.6) | (586.5) | (592.6) |
| Operating income before | ||||
| financial results | 147.1 | 146.8 | 71.0 | 71.9 |
| Financial results | 219.4 | 219.6 | 224.3 | 224.4 |
| Profit before tax | 366.5 | 366.4 | 295.3 | 296.3 |
| Profit for the period | 309.0 | 308.6 | 258.7 | 259.4 |
| Basic earnings per share | 0.6304 | 0.6296 | 0.5278 | 0.5292 |
| Company's Income Statements | ||||
|---|---|---|---|---|
| (Amounts in millions of Euro, | REPORTED | ADJUSTED DATA | REPORTED | ADJUSTED DATA |
| except per share data) | DATA | 01.01-31.03.2008 | DATA | 01.01-31.03.2007 |
| 01.01-31.03.2008 | 01.01-31.03.2007 | |||
| Total revenues | 633.3 | 638.0 | 660.9 | 666.9 |
| Total operating expenses | (546.1) | (548.5) | (584.8) | (592.0) |
| Operating income before | ||||
| financial results | 87.2 | 89.5 | 76.1 | 74.9 |
| Financial results | (45.0) | (44.9) | (4.9) | (4.8) |
| Profit before tax | 42.2 | 44.6 | 71.2 | 70.1 |
| Profit for the period | 27.0 | 28.7 | 50.3 | 49.2 |
| Basic earnings per share | 0.0551 | 0.0587 | 0.1026 | 0.1004 |
| Company's Cash Flow Statements | ||
|---|---|---|
| REPORTED | ADJUSTED | |
| (Amounts in millions of Euro) | DATA 01.01-30.06.2007 |
DATA 01.01-30.06.2007 |
| Net cash from operating activities | 159.2 | 156.0 |
| Net increase in cash and cash equivalents | 137.5 | 134.3 |
| Cash and cash equivalents at beginning of period | 814.7 | 824.6 |
| Cash and cash equivalents at end of period | 952.2 | 958.9 |
The most significant events that have occurred after 30 June 2008, are the following:
On 28 July 2008 Hellenic Telecommunications & Post Commission (HTPC) announced in the Press that it had imposed a fine on OTE for an amount of Euro 9.0 for alleged obstacles to the business promotion of the "Double play" service by TELLAS S.A. (fixed telephony with fast Internet combination). OTE intends to file lawsuit before the Athens Court of Appeals demanding the suspension of the decision.
| GROUP | COMPANY | GROUP | COMPANY | ||||||
|---|---|---|---|---|---|---|---|---|---|
| ASSETS | 30.06.08 | 31.12.2007 | 90.06.08 | 31.12.2007 | 01.01-30.06.2008 01.01-30.06.2007 01.01-30.06.2008 01.01-30.06.2007 | ||||
| Property, plant and equipment | 6,176.7 | 6,371.4 | 2, 248.3 | 2.372. | |||||
| Intangible assets | 907.6 1,144.3 |
937.7 1,161.4 |
3.2 5.373.4 |
3.4 Cash flows from operating activities 4.529.3 Profit before tax |
438.0 | 498.6 | 380.7 | 366.4 | |
| Other non current assets Inventories |
1920 | 201.7 | 23.2 | 37.1 Adjustments for: | |||||
| Trade receivables | 1.274.6 | 1,172.0 | 754.2 | 742.4 Depreciation and amortization | 584.8 | 570.8 | 239.2 | 258.9 | |
| Other current assets | 366.0 | 372.5 | 462.4 | 217.1 Provision for early retirement program | 44.8 | 22.1 | 12.2 | 22.1 | |
| Cash and cash equivalents TOTAL ASSETS |
1,456.4 11.517.6 |
1.316.3 11,533.0 |
450.2 9.314.9 |
459.2 Provisions 8,360.7 Foreign currency translation differences |
92.5 (7.1) |
104.4 (22.7) |
73.9 $^{\alpha}$ |
829 1.3 |
|
| Investment (income)/ losses | (69.3) | (69.6) | (305.4) | (262.1) | |||||
| Amortization of advances to EDEKT pension fund | 17.6 | 17.6 | 17.6 | 17.6 | |||||
| EQUITY AND LIABILITIES | Interest expense and related expenses | 166.2 | 106.8 | 101.0 | 41.2 | ||||
| Share Capital Other Equity items |
1,171.5 (32.2) |
1,171.5 860.0 |
1,171.5 2.334.2 |
1,171.5 Adjustments for charges in working capital: 2,377.5 Decrease / (increase) in inventories |
9.7 | (17.0) | 13.9 | 10.9 | |
| Equity attributable to shareholders of the parent (a) | 1,139.3 | 2,031.5 | 3,505.7 | 3,549.0 Increase in trade receivables | (169.6) | (119.9) | (307) | (96.8) | |
| Minority interest (b) | 940.3 | 1.023.1 | Decrease in liabilities (except bank liabilities) | (169.1) | (257.0) | (116.0) | (256.4) | ||
| Total equity $(c) - (a) + (b)$ | 2.079.6 | 3.054.6 | 3,505.7 | 3,549.0 Minus: | |||||
| Long-term debt Provisions / Other non current liabilities |
6.024.6 973.4 |
3,947.1 954.9 |
3,374.9 759.0 |
1,285.2 Interest paid and related expenses paid 744.8 Income taxes paid |
(91.3) (81.3) |
(78.2) (83.2) |
(30.1) (21.3) |
(30.0) | |
| Short-term borrowings | 39.2 | 1,580.7 | 17.5 | 1,511.7 Net cash from operating activities (a) | 765.9 | 672.7 | 335.7 | 156.0 | |
| Other current liabilities | 2,400.8 | 1.995.7 | 1.657.8 | 1,270.0 | |||||
| Total liabilities (c) TOTAL EQUITY AND LIABILITIES (c) + (d) |
9,438.0 11,517.6 |
8,478.4 11,533.0 |
5,809.2 9.314.9 |
4,811.7 Cash flows from investing activities | (848.9) | (848.9) | |||
| 8,360.7 Acquisition of subsidiary or associate, joint ventures and other investments Purchase of property, plant and equipment and intangible assets |
(375.0) | (31.1) (467.3) |
(116.0) | (1.0) (112.7) |
|||||
| Proceeds from sale of investment | 5.1 | 34.8 | 2.5 | 5.8 | |||||
| INCOME STATEMENT DATA (Amounts in millions of Euro) | Other long-term liabilities | 144.5 | |||||||
| GROUP | Loans granted | (0.3) | (87.9) | (0.3) | (147.9) | ||||
| 01.01-30.06.2008 01.01-30.06.2007 01.04-30.06.2008 01.04-30.06.2007 Interest received | Dividends receivable | 26.4 4.9 |
27.4 6.3 |
13.7 4.9 |
16.8 218.2 |
||||
| Total revenues | 3,128.0 | 3.059.9 | 1.590.5 | 1,551.3 Net cash used in investing activities (b) | (1, 187.8) | (373.3) | 744 D | (20.8) | |
| Profit before taxes, investment results | |||||||||
| and financial results | 527.8 | 513.1 | 288.3 | 252.8 | |||||
| Profit before tax | 438.0 | 498.6 | 247.5 | 257.4 Cash flows from financing activities | |||||
| Net profit Attributable to: |
297.4 | 350.2 | 160.5 | 172.5 Proceeds from minority shareholders for increase of subsidiary's share capital |
16.9 | 126 | |||
| Shareholders of the parent | 300.4 | 277.5 | 159.3 | 136.6 Proceeds of long-term and short-term borrowings | 2,701.3 | 2,700.0 | |||
| Minority interest | (3.0) | 35.9 Repayment of long-term and short-term borrow ings | (2,155.4) | (528.7) | (2,100.0) | ||||
| 297.4 | 350.2 | 160.5 | 172.5 Dividends paid | (0.8) | (82.5) | (0.6) | (0.9) | ||
| Basicearnings per share (in€) | 0.6129 | 0.5661 | 0.3250 | 0.2786 | Net cash from / (used in) financing activities (c) | 562.0 | (598.6) | 599.4 | (0.9) |
| Profit before taxes, financial results, investment results, | |||||||||
| depreciation and amortization | 1,112.6 | 1.083.9 | 578.8 | 544.3 | Net increase /(decrease) in cash and cashe quivalents (a) + (b) + (c) | 140.1 | (299.2) | (9.0) | 134.3 |
| COMPANY | Cosh and cash equivalents at beginning of the period Cash and cash equivalents at end of the period |
1,316.3 | 2,042.5 | 459.2 450.2 |
824.6 | ||||
| 01.01-30.06.2008 01.01-30.06.2007 01.04-30.06.2008 01.04-30.06.2007 | 1,456.4 | 1,743.3 | 958.9 | ||||||
| 1,284.8 | 1,331.4 | 646.8 | 664.5 | ADDITIONAL DATA AND INFORMATION | |||||
| 177.0 | 146.8 | 87.5 | 71.9 1) The companies which are included in the consolidated financial statements, their country of incorporation, the Group's participating interest (direct and indirect) | ||||||
| 3807 | 366.4 | 336.1 | 296.3 | and the method of consolidation, are presented in Note 1 of the interim financial statements. | |||||
| 341.9 | 308.6 | 313.2 | 259.4 2) In the six months protod ended 30 June 2008, INFOTE S.A. is not included in the consolidated financial statements, as it was sold in December 2007. | ||||||
| 3) The fiscative ars that are unaudited by the tax authorities for the Company and the Group's subsidiaries are presented in Note 9 of the interim financial statements. | |||||||||
| 341.9 | 308.6 | 313.2 | 259.4 4) In May 2008, OTE announced the sale of the Group's investment in OTENET CYPRUS LTD and OTENET TELECOMMUNICATIONS LTD to Cyprus | ||||||
| Trading Corporation Pic (CTC) for an amount of approximately $63.9$ million. | |||||||||
| 341.9 | 308.6 | 313.2 | 259.4 | It May 2008 OTE acquired the remaining interest in its subsidiary VOICENET from SANYO HELLAS INVESTMENT S.A., for a consideration of $\in$ 1.3 million. | |||||
| Following that acquisition, OTE owns 100% of V OICENET's share capital and the comesponding voting rights. | |||||||||
| 0.6976 | 0.6296 | 0.6389 | 0.5292 | 6) On 27 June 2008 the relevant ministerial decision which approved and concluded the procedure of OTENET's absorption by its parent company (OTE), | |||||
| 416.2 | 405.7 | 205.2 | 199.5 | was registerted in Societe Anonymes Records of the Prefecture of Athens. The impact of the merger in the financial statements is not significant. | |||||
| Because of the absorption, the comparative separate financial statements have been adjusted. These adjustments are presented in Note 18 of the financial statements. The outcome of the pending litigation and claims is not expected to have material impact in the financial statements. The amount of provisions that have been |
|||||||||
| estiblished as of 30 June 2008 for Rigations and other risks, as well as for maudited tax years are as follows: a) for the Company $0.121,3$ million and $0.5,0$ million | |||||||||
| STATEMENT OF CHANGES IN EQUITY DATA (Amounts in millions of Euro) | tespectively and by for the Group $\in$ 123,5 million and $\in$ 16,2 million respectively. | ||||||||
| GROUP | COMPANY | Number of employees at the end of the period: Group 33.062 (30.06.2007: 33.334), Company 12.123 (30.06.2007: 11.940). | |||||||
| 30, 06, 2008 | 30.06.2007 | 30.06.2008 | 30.06.2007 | Net loss recognized directly inequity relates to the fair value difference between 30 Jum 2008 and 31 December 2007, of available for sale | |||||
| marketable securities (listed on the Athens Stock Exchange). | |||||||||
| 3,054.6 297.4 |
4,888.7 350.2 |
3,549.0 341.9 |
3,237.8 308.6 |
10) The Company's transactions with its related parties as defined in 1AS 24, are analyzed as follows: Sales and purchases of goods and services for the first six months of 2008, amounted to $\in$ 1065 million and $\in$ 153.9 million, respectively. Interest income and interest expense for the first half of 2008 amounted to $\in$ 2.6 million |
|||||
| 33520 | 5.238.9 | 3.800.0 | 3 546 4 | and $\in$ 36.2 million respectively. Dividends income form related parties amounted to $\in$ 276.0 million. The outstanding balance of receivables and psyables | |||||
| (367.6) | (350.8) | (367.6) | (269.6) | from/to related parties as of 30 June 2008 derived from canvet transactions amounted to 6 64.5 million and 6 103.5 million, respectively. The outstanding balance | |||||
| (20.6) 3.0 |
6.5 | (20.6) | of receivables and psyables from/to related from the loans granted and received amount to $\in$ 86.9 million and $\in$ 3.454.8 million respectively. The outstanding balance | ||||||
| (44.0) | 151.5 | 3.0 | of receivables from dividends was € 276.0 million. Fees paid to the members of the Board of Directors of the Company and lay management personnel compensation charged to the Income Statement of the first half of 2003, amount to $\epsilon$ 2.7 million. Based on OTEs share option plan, 803.620 stock options have been granted to key |
||||||
| (843.2) | management personnel, which had not been vested until 30 June 2008. At the Group level there are no further transactions and outstanding balances with related parties. | ||||||||
| 2079.6 | 5,052.1 | 35057 | 3,283.3 | 1) Earnings per share were calculated based on the weighted average number of shares outstanding. | |||||
| (2) The most signicantevents that have occurred after 30 June 2003 are presented in the Note 19 of the interim financial statements. | |||||||||
| Marocesi, 27 August 2008 | |||||||||
| CIRAIRMAN AND MANAGING DIRECTOR | VICE CHAIRMAN | CHEF PINANCIAL OFFICER | CHIEF ACCOUNTING OFFICER | ||||||
| Total revenues Profit before taxes, investment results and financial results Profit before tax Net profit Attributable to: Shareholders of the parent Minority interest Basicearnings per share (in€) Profit before taxes, financial results, investment results, depreciation and amortization. Total equity at beginning of the period (OL 01.2008 and 01.01.2007) Profit for the period. Dividends declared Net income / (loss) recognized directly in equity Stock option plan Foreign currency translation differences Net change of interest in subsidiaries Total equity at end of the period (30.06.2008 and 30.06.2007) PANAGES VOURLOUMES I.D. Number N 032961 |
GEORGE BITROS I.D. Number A 759012 |
CHRISTINI SPANOUDAKI LD. Number 1968'6 |
KONSTANTINOS VASILOPOULOS 1D.Number 1152939 |
||||||
| License Number 032033 |
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