Athens, March 16 2016 – OTEGLOBE records growth once again, according to its 2016 financial results.
OTEGLOBE’s revenues reached €340,8 mn presenting an increase of 8% compared to 2015. Since 2007, the company has increased its revenues by 106% (from €165,1 mn to €340,8 mn), by recording a year-to-year revenues’ increase. It should be noted that 80% of the 2016 total revenues come from international customers.
OTEGLOBE recorded an increase of profits before income tax by 6%, standing at €8,3 mn in 2016 from €7,8 mn in 2015, while the cash and cash equivalents remained at high levels at €95,5 mn in 2016 from €97,1 mn in 2015, despite the new investments. This is mainly a result of the company’s operational profitability and of more efficient working capital management.
EBITDA reached €16,1 mn in 2016, presenting a small decrease compared to 2015 (€17,2 mn). This is mainly due to the increasing competition and the corresponding price erosion, both in voice services (decrease in termination rates in Greece and Europe) and data services, in the markets that OTEGLOBE mainly operates (Greece and S.E. Europe). Major drawback was also the delay or postponement of business plans in the broader Middle East and Northern Africa markets, due to the uncertainty and political instability in various countries.
By capitalizing on Greece’s geographic advantage, OTEGLOBE has already implemented its expanding strategy in the new markets of M. East and N. Africa, through investments and partnerships with major carriers.
In this context, in January 2014, 19 of the world’s most prominent telecom service providers, among them OTEGLOBE, joined forces to construct the new next generation international submarine cable, one of the largest and unique high capacity cable system of the world, the Asia Africa Europe-1 (AAE-1).
The AAE-1 submarine cable spanning approximately 25,000 km, will be one of the first unique cable systems connecting Hong Kong, Singapore, Middle East, Africa and Europe, providing an alternative low latency route between Far East and Europe. Major part of this traffic, will pass through Greece and the Chania cable station.
The financial statements of OTEGLOBE for 2016 can be found at www.oteglobe.gr