Telekom Romania posts EBITDA of 41.4 million Euro, up by 14 percent in Q2

Telekom Romania group announces key performance indicators for the second quarter of 2021, ended June 30, 2021.The company’s EBITDA after lease grew by 14.5 percent YoY, reaching 41.4 million Euro, in Q2 2021 comparing the same period last year. The revenues, amounting to 216.8 million Euro, decreased slightly compared to Q2 2020, due to the slower recovery of the Romanian economy from the negative impact of the pandemic.

Revenues from the fixed voice business represents 11.3 million Euro, in Q2 2021, slightly behind the previous quarter. Fixed broadband revenues amount to 16.7 million Euro, representing a slight decline, compared to pre-pandemic levels.

On the mobile business, the company continues the growth in subscribers. Q2 ended with 1.7 million. postpaid subscribers, representing a growth of 7.8 percent year on year in this segment, being the 5th quarter of base growth in a row.

“As part of Telekom strategic transformation over the past years, we have worked to create a sound financial base for the company and to make ourselves more resilient in the face of external market pressures. The Q2 financial results show that we adopted the right strategic direction and is paying off, as we managed to further grow our EBITDA year over year, despite the difficult market environment, after a year with a pandemic and even compensating seasonal one-off effects from the past”, said Nicolas Mahler, Chief Financial Officer of Telekom Romania.

On July 28, 2021 the European Commission (EC) approved conditionally, the agreement announced on November 9, 2020 between OTE and Orange Romania for the sale of the 54 percent stake OTE holds in Telekom Romania Communications S.A. (“TKR”) (the “Approval”). Specifically, the Approval is conditional on TKR divesting its 30 percent stake in Telekom Romania Mobile Communications S.A. (TKRM). Currently OTE holds 70 percent and TKR holds 30 percent. OTE intends to acquire this 30 percent stake from TKR, which will lead to OTE controlling near 100 percent of TKRM subject to required approvals.

Following the Approval, completion of the 54 percent TKR sale to Orange Romania is expected within the next few months once the execution of the EC remedy has been completed and the remaining conditions precedent have been met.