Ote Ads Regulatory News (OTES)

20 Mar 2008 08:39

Hellenic Telecomms Organization S A20 March 2008 OTE GROUP REPORTS 2007 FOURTH QUARTER RESULTS UNDER IFRS • Group revenues up 2.7%, or up 4.3% on a comparable basis •Greek fixed-line revenue resilient but LLU intensifies •Cosmote passes 15 mn subscriber mark •RomTelecom impacted by line losses • Group OIBDA margin unchanged • Successful buy-out of Cosmote minority shareholders • Proposed dividend up 36% to €0.75 per share ATHENS, Greece - March 20, 2007 - Hellenic Telecommunications Organization SA(ASE: HTO, NYSE: OTE), the Greek full-service telecommunications provider, todayannounced audited consolidated results (prepared under IFRS) for the quarter andtwelve months ended December 31, 2007: • mn Q4'07 Q4'06 % Change 12M'07 12M'06 % ChangeRevenues 1,632.2 1,588.8 2.7% 6,319.8 5,891.3 7.3%Operating Income 214.6 219.0 -2.0% 1,046.9 1,088.3 -3.8%Pre-tax Income 396.1 271.8 45.7% 1,154.8 1,083.8 6.6%Net Income 229.6 129.1 77.8% 662.6 574.6 15.3%Basic EPS (•) 0.4684 0.2633 77.8% 1.3518 1.1723 15.3%OIBDA* 521.6 508.5 2.6% 2,218.7 2,216.8 0.1%Pro forma** OIBDA 521.6 508.5 2.6% 2,240.8 2,167.0 3.4%as % of OperatingRevenues 32.0% 32.0% - 35.5% 36.8% -1.3ppCash flow fromoperations 434.1 573.9 -24.4% 1,450.7 1,786.2 -18.8%CAPEX as % of 24.7% 23.7% 1.0pp 17.4% 16.3% 1.1ppRevenues * Operating income before depreciation and amortization ** Excluding impact of OTE SA Voluntary Retirement Program (€22.1mn in Q1'07 and €49.8mn reversal in Q3'06) Commenting on the quarter, Panagis Vourloumis, Chairman and CEO, noted: "2007 was an important year for OTE. From an operational standpoint, our overallperformance was largely in line with our business plan objectives: Greekfixed-line activities proved resilient in the face of growing local loopunbundling; Cosmote achieved its 15 million customer target two years ahead ofschedule; and RomTelecom's expanded offering enabled it to weather fiercecompetition. From a strategic standpoint, the absorption of Germanos, acquired in late 2006,strengthens our distribution capabilities in most of our markets, while the fullintegration of Cosmote, following the buy-out of minority holders, puts us in amuch better position to benefit from the growing convergence between fixed,mobile and broadband. Earlier this year, despite tough conditions in the capitalmarkets, we raised the funds needed for this acquisition, and our ratings wereconfirmed by the agencies. Despite this, there is no room for complacency. Thenature of our competition is changing and intensifying throughout our markets,as powerful mobile operators increasingly challenge us across the full range ofour product offering, and regulatory uncertainty is as present as ever.Innovation, vigilance and cooperation across Group companies will be key to meetour 2008 targets." Financial Highlights Revenues OTE Group Revenues for the three months ended December 31, 2007 increased by2.7% compared to the fourth quarter of 2006. Excluding the deconsolidation ofInfOTE in Q4'07 and ArmenTel in Q4'06 comparable revenues were up by 4.3% inQ4'07, as a result of strong performance in mobile operations and ongoing ADSLgrowth. Total Operating Expenses Total Operating Expenses excluding depreciation & amortization increased by 2.8%in the quarter to €1,110.6mn, in line with the growth in revenues, as lowerexpenses in Greek fixed-line was offset expenses in growing activities. - Payroll and Employee Benefits In Q4'07, Payroll and Employee Benefits totaled €320.2mn, up 3.1% compared tothe previous year's quarter, reflecting new hirings at OTE-fixed line followingthe completion of the Voluntary Retirement Plan, as well as the growth in mobiletelephony headcounts. - Other Operating Expenses Other Operating Expenses were up 11.2% to €370.4mn, mainly reflecting highercommissions to dealers and advertising at Cosmote and, to a lesser extent, atRomTelecom. Operating Income before Depreciation and Amortization Operating Income before Depreciation and Amortization (OIBDA) increased by 2.6%to €521.6mn in Q4'07. The OIBDA margin stood at 32.0%, unchanged from thecomparable quarter last year. Net Income OTE Group reported Net Income of €229.6mn, as compared to €129.1mn in Q4'06. InQ4'07 consolidated net income included a realized capital gain on the sale ofInfOTE (€244.7mn pre-tax), foreign exchange losses of €5mn related to changes invalue of the Romanian currency, higher depreciation charges resulting fromsignificant capital expenditure of the international businesses and a €57.8mn provision related to tax audits in Greece and Romania. In Q4'06 consolidated netincome included a realized capital gain on the sale of ArmenTel (€160.2mnpre-tax) and a €70.0mn charge related to OTE's loan granted to the OTE AuxiliaryPension Fund. Cash Flow Cash provided by operating activities amounted to €434.1mn for the three monthsended December 31, 2007. The 24.4% drop in cash flow from operations primarilyreflects a sharp increase in income taxes paid in the quarter at the Greekfixed-line and the mobile operations. In Q4'07, OTE incurred an outflow ofapproximately €45mn related to Greek fixed-line redundancy payments. Capital Expenditure Capital expenditure in the fourth quarter totaled €403.2mn, up 6.9% compared toQ4'06. Full-year 2007 Group capital expenditure slightly exceeded €1.1bn butfell below the level forecast in the March 31, 2007 three-year business plan. Debt As of December 31, 2007, total OTE Group gross debt stood at €5,527.8mn, anincrease of 20.4% compared to December 2006, reflecting OTE's increased interestin Cosmote. Net debt amounted to €4,211.5mn, up 65.3% from 2006 year end. OTEGroup debt outstanding breaks down as follows below: (• mn) Dec 31, 2007 Dec 31, 2006 % ChangeShort-Term: -Bank loans 1,497.4 25.2 5842.1%Medium & Long-term: -Bonds 3,360.4 3,844.3 -12.6% -Bank loans 670.0 721.0 -7.1%Total Indebtedness 5,527.8 4,590.5 20.4%Cash and Cash equivalents 1,316.3 2,042.5 -35.6%Net Debt 4,211.5 2,548.0 65.3% 1. OTE Fixed-Line TRAFFIC STATISTICS (Minutes, million) Q4'07 Q4'06 % ChangeLocal 2,785.2 2,997.0 -7.1%National Long - Distance 464.9 443.5 4.8%International Long - Distance 68.2 73.5 -7.2%Fixed-to-Mobile 453.1 455.2 -0.5%Special Calls 50.2 55.1 -8.9%Total Voice traffic 3,821.6 4,024.3 -5.0%Subscription Dial-up Internet 936.3 1,702.2 -45.0% (• mn) Q4'07 Q4'06 % Change 12M'07 12M'06 % ChangeRevenues 670.4 657.7 1.9% 2,656.9 2,714.5 -2.1% - Basic Monthly Rentals 163.8 173.3 -5.5% 674.8 691.9 -2.5% - Fixed-to-fixed calls 115.0 132.2 -13.0% 485.3 518.9 -6.5% - Fixed-to-mobile calls 63.0 74.1 -15.0% 262.8 313.8 -16.3% - International 50.3 38.2 31.7% 197.7 181.1 9.2% - Other 278.3 239.9 16.0% 1,036.3 1,008.8 2.7%Operating Income 65.1 36.7 77.4% 310.7 312.1 -0.4%Operating incomebefore depreciationand amortization 186.8 168.4 10.9% 812.9 840.1 -3.2%as % of Operatingrevenues 27.9% 25.6% 2.3pp 30.6% 30.9% -0.3ppVoluntary Retirementcosts/(reversals) 0.0 0.0 - 22.1 (49.8) -Pro Forma Operatingincome beforedepreciation andamortization 186.8 168.4 10.9% 835.0 790.3 5.7%as % of Operatingrevenues 27.9% 25.6% 2.3pp 31.4% 29.1% 2.3ppDepreciation &Amortization 121.7 131.7 -7.6% 502.2 528.0 -4.9% In Q4'07, total fixed-line revenues amounted to €670.4mn, up nearly 2% from thecomparable quarter in 2006. Excluding a one-off adjustment in Q4'06, totalfixed-line revenues for the 2007 quarter were up slightly from the prior yearlevel despite the exclusion of OTE Globe from fixed-line revenues. Thisresilient performance, after four consecutive quarters of year-on-year revenuedeclines, reflects good performances in international telephony, broadband andservices, more than offsetting the drop in revenues from monthly rentals anddomestic telephony. As of the end of December 2007 there were approximately 4.5 million PSTN linesin service, a drop of 5.6% compared to the prior year level, reflecting theimpact of local loop unbundling (LLU) as well as continued fixed-to-mobilesubstitution. The number of ISDN lines (64K) fell by 2.7% to a total of over 1.3million. Total line loss continued in the quarter, with the total number oflines reaching 5.85 million, down 5.0% from 2006 year end. The pace of line lossfor the year was in line with management expectations included in OTE's 2007-09Business Plan presented in March 2007. The total Greek ADSL market exceeded 1.1 million subscribers as of the end of2007, compared to approximately 512,000 at the end of December 2006. OTE'sbroadband offering reached approximately 825,000 ADSL subscribers, with a splitof over two-thirds retail customers and less than one-third wholesale.Intensification of LLU as well as competition from other fixed-line operatorsand from mobile operators continued to put pressure on OTE's retail market sharein Q4'07. LLU exceeded 300,000 lines at the end of 2007, up approximately285,000 lines compared to the previous year-end level. To defend its positions in the face of intense competition, OTE has continued topromote new offerings in broadband, while the existing telephony offeringsremain well accepted by the market. Conn-x Talk flat-rate subscriptionsincreased further, reaching 160,000 customers or nearly one-third of alleligible OTE ADSL users less than a year after its launch. In December 2007, OTEalso implemented significant ADSL price reductions and launched new, fasterinternet access speeds of up to 24 Mbps in an effort to capture a larger shareof the premium broadband market. Tariffs were reduced by up to 44.5%, minimumaccess speed was upgraded free of charge from 768Kbps to 1024Kbps, and a topaccess speed of up to 24Mbps was added to the offering. The market's earlyreaction to OTE's new broadband offerings was very positive, with nearlyone-third of OTE's net retail customer growth coming from subscriptions toeither 8Mb or 24Mbps access speeds. Management also estimates that OTE's retailshare of new broadband additions since December has recovered to levels wellabove 50% from significantly lower levels in recent quarters. In the fourth quarter, OTE reorganized its Greek fixed-line's Division ofBusiness and Residential Customers into two separate units focusing on Corporate& Business Customers and on Residential Customers. This should enable OTE toimprove its responsiveness to competitive pressures, enhance customer support,accelerate the development of differentiated products and solutions targetingspecific customer segments, better address technological convergence, and,finally, raise practices to best international standards. In Q4'07, total operating expenses amounted to €605.3mn, down from €621.0mn inthe comparable 2006 quarter. Payroll and employee benefits were up 7.6% to€190.6mn, reflecting salary increases and the impact of new hirings starting inlate 2006. Other operating expenses stood at €154.1mn, down from €162.8mn inQ4'06, mainly due to reduced provisions. Operating Income before Depreciation and Amortization (OIBDA) reached €186.8mn,up 10.9% compared to the prior year level, while OIBDA margin rose by 2.3percentage points to 27.9%. 2. Cosmote SUMMARY FINANCIAL DATA FOR Q4 2007(• mn) Cosmote AMC GloBul CosmoFon Cosmote Germanos Consolidated Greece Romania Group Q4'07 Q4'06 % ChangeRevenues 441.4 46.1 110.9 15.8 50.4 304.3 809.3 751.8 7.7%Operatingincomebeforedepreciationand 177.7 27.7 43.8 5.0 -11.8 7.5 240.5 233.1 3.2%amortizationas % ofOperatingrevenues 40.3% 60.1% 39.5% 31.6% n/a 2.5% 29.7% 31.0% -1.3pp In Q4'07, Cosmote revenues continued to grow, driven by ongoing strongperformance by all mobile operating units and strong subscriber take-up.Excluding the contribution of Germanos, international operations accounted forapproximately 33.5% of this quarter's revenues before eliminations. The highproportion of revenues coming from international operations reflects thesuccessful expansion of Cosmote in Southeastern Europe, which enabled thecompany to exceed the 15 million subscriber target initially set for 2009. In Greece, Cosmote revenues totaled €441.4mn in Q4'07, up 7.0% compared toQ4'06, despite the tariff reduction in segments of the prepaid market and theaggressive post seasonal offers effected during the quarter. OIBDA margindecreased by 2.4pp in the quarter due to lower interconnection and roamingrates, as well as certain one-off costs. Blended AMOU rose by 12% to 170 minutes in the twelve months ended December2007, while bended ARPU sustained the trend of the previous quarters and droppedto €27.2, mainly due to cuts in termination rates and price offerings in thepre-paid segment. Cosmote reported 329,261 net additions in the quarter, anincrease of 20.1%, strengthening the company's leading position in the Greekmobile market with over 6 million customers. In Albania, AMC reported strong revenue and OIBDA growth, as a result of theexpansion of its customer base and a significant increase in traffic. Revenuesin Q4'07 rose 12.8% to €46.1mn and OIBDA stood at €27.7mn, leading to a marginof 60.1% for the quarter. For the twelve months, blended AMOU was 59 minutes andblended ARPU €14. Net additions for the quarter reached 59,736 customers andAMC's customer base amounted to approximately 1.2 million at the end of year. In Bulgaria, GloBul maintained its strong revenue growth in the quarter,achieving an OIBDA margin improvement of 2.7 pp compared to Q4'06. Revenuesincreased by 18.9% to €110.9mn, mainly reflecting the growth of post-paidcustomer traffic, while OIBDA margin stood at 39.5% in the quarter, thanks tocost-cutting initiatives. Blended AMOU rose by 37% to 97 minutes, while blendedARPU remained at €10. The company achieved 215,672 net additions, mainlyfocusing on expanding the post-paid customer number, and reached a totalcustomer base of approximately 3.9 million. In FYROM, CosmoFon delivered an 11.2% revenue increase in Q4'07 to €15.8mn,despite the intensified competition in the quarter from the launch of a thirdmobile operator in the country. OIBDA rose to €5.0mn with a margin of 31.6%, a21.8 pp increase compared to Q4'06, due to containment of network expenses andpayroll. Blended AMOU for the twelve months was 85 minutes, 49% higher than thesame period last year, while blended ARPU stood at €10. CosmoFon captured 52,165net additions in the quarter, reaching a total of 593,026 customers at the endof the year. In Romania, Cosmote Romania continued its strong subscriber take-up and thecustomer base exceeded 3.6 million -or an estimated 16% market share- withapproximately 800,000 net additions during Q4'07. Almost 80% of the newcustomers were pre-paid, however Cosmote Romania has been significantlyexpanding its post-paid customer base by 41% on sequential quarters. BlendedARPU stood at €5.6, while revenues reached €50.4mn in Q4'07, continuing theirrapid growth quarter after quarter. Germanos played a significant role in the expansion of Cosmote's subscriberbase, leading effectively to strong revenue growth. The number of net additionsthrough Germanos has more than doubled, from c. 1.2 mn in Q4'06 to c. 2.4 mn inQ4'07. Overall, compared to 2006, Germanos has increased total net post paidadditions by 112% to the Group; by 84% in Greece, 256% in Romania, 55% inBulgaria and 35% in FYROM. Germanos Group (On a stand-alone basis) reported €304.3mn revenues and €7.5mnOIBDA, resulting in a margin of 2.5% for the quarter. The number of Germanosbranded stores increased from a total of 610 in 2006, to over 770 stores at theend of 2007. Cosmote delivered strong customer growth and profitability improvement acrossall geographical markets. Consolidated revenues for Q4'07 stood at €809.3mn, a7.7% increase over Q4'06, largely reflecting the consolidation of Germanos sinceQ4'06, while OIBDA increased by 3.2% to €240.5mn. Additional details are available in Cosmote's Q4'07 press release issued onMarch 19, 2008. 3. RomTelecom OTE, through its wholly owned subsidiary OTE International Investments Ltd,holds a 54.01% interest in RomTelecom S.A., the incumbent telecommunicationsoperator in Romania. RomTelecom's key financial figures are stated below: (• mn) Q4'07 Q4'06 % Change 12M'07 12M'06 % ChangeRevenues 222.9 229.8 -3.0% 871.9 894.8 -2.6%OIBDA 58.8 78.5 -25.1 % 300.4 338.3 -11.2%OIBDA Margin 26.4% 34.2% -7.8pp 34.5% 37.8% -3.3ppEBIT (25.0) 17.8 - 8.1 84.4 -90.4%Net Income/ (40.6) 13.6 - (21.1) 55.2 -(Loss)Net Income/(Loss) -18.2% 5.9% - -2.4% 6.2% -MarginIncrease/(Decrease) in 56.3 106.4 -47.0% 207.2 208.1 -0.4%Gross PP&E Fixed Telephony, 3,035,000 3,403,346 -10.8%Lines Dec 31, 2007 Dec 31, 2006Cash and cashequivalents 173.5 155.6 11.5%Short-term - -borrowingsLong-term 78.2 105.1 -25.6%borrowingsNet Cash 95.3 50.5 88.7%Position In the fourth quarter of 2007, RomTelecom operating revenues were down 3% fromthe same period in 2006. The overall drop in traditional telephony services aswell as reduced wholesale and payphone revenues, together with the impact of areduction in tariffs implemented in Q2'07 for both voice and ADSL products werepartly offset by strong growth in new services, notably broadband, business data& TV services. The combination of mobile substitution and higher competition from alternativefixed-line carriers impacted the number of subscriber lines, which decreased bynearly 11% from the 2006 year-end level. The new minute-based bundles launchedin late May - offering unlimited on-net off-peak traffic for allminutes-included subscriptions and round-the-clock unlimited on-net traffic forthe highest value package - were well received by customers, resulting in adecline in churn. In December 2007, for the first time after three years ofsharp decline, RomTelecom posted a positive net addition in the number of lines. Interconnection revenues rose by 8% in the fourth quarter of 2007 compared tothe same period of 2006, reflecting a 21% increase in wholesale traffic. Data services (ADSL, VPN, other broadband services), a rapidly emerging revenuegenerator, achieved significant growth (+80%) in the fourth quarter of 2007compared to the same period last year, in line with RomTelecom's objective togain market share in non-voice services. The total number of billed ADSLcustomers at the end of Q4 2007 was 360,000, an increase of about 270,000compared to the 2006 year-end level. Success of the direct-to-home TV service launched in November 2006 continued inthe fourth quarter of 2007, with the acquisition of close to 100,000 newcustomers in the three months bringing the total number of subscribers to390,000 at year end. Reflecting growth in ADSL and DTH TV, revenues from salesof Customer Premise Equipment (CPE) rose by over 400% in the quarter. In the fourth quarter, operating expenses excluding depreciation andamortization were 8.5% higher than in the same period of 2006. Approximatelyhalf of this increase results from the intensification of customer-focusedinitiatives, mainly higher advertising expenses related to newly launchedservices and increased cost of goods sold on higher CPE sales. In addition,interconnection costs rose due to increased international transit and growth ininternational calls as a result of the Company's enhanced offers. Finally, Q4expenses were negatively impacted by a one-off tax penalty. In the fourth quarter, Operating Income before Depreciation & Amortization wasdown 25.1% compared to the same period of 2006. The Company posted a net loss of€40.6 million as a result of higher depreciation, mainly due to the completionof broadband-related projects, as well as to a near doubling in its share ofCosmote Romania's loss. Exchange rate fluctuations in the quarter (7%depreciation of the Romanian Lei vs. the Euro) resulted in a financial loss, ascompared to a gain in Q4 2006. Headcount remained virtually unchanged year on year, totaling 12,512 employeesat the end of 2007. Several projects and initiatives are implemented to address the aggressivecompetitive environment: O Successful deployment of satellite television services contributed to the repositioning of RomTelecom as a full telecom and media services provider; O A new campaign was launched, offering bundles of ADSL service completed with PCs or laptops, at higher monthly fees, in order to increase broadband penetration; O Effective retention tools are being used to control and reduce churn; O A corporate transformation program was launched early in 2008 in order to improve RomTelecom's operating efficiency. 4. Events of the quarter EXTRAORDINARY SHAREHOLDERS MEETING On November 8, 2007, the Extraordinary General Meeting of OTE shareholdersapproved an amended version of OTE's share repurchase program as well asamendments to the company's Articles of Association, reflecting recent changesto Greek Corporate Law. VOLUNTARY PUBLIC OFFER FOR COSMOTE On November 9, 2007, OTE announced its intention to proceed with a voluntarycash public offer for the 32.2% interest that it did not already own in theshare capital of its listed mobile telephony subsidiary, Cosmote SA, at a priceof €26.25 per share. Immediately following the announcement of the public offer,Moody's and S&P reaffirmed the ratings of OTE. Following the completion of thebond refinancing, OTE expected the Group's Debt/EBITDA ratio to initiallyincrease from 1.1x to approximately 2x, comparable to the leverage levels ofother major European integrated operators. With the acquisition of full control over Cosmote, OTE is able to bettercoordinate its activities across the telecommunications spectrum, therebyenhancing its competitiveness and rationalizing its distribution infrastructureand gain direct access to Cosmote's cash flow, enabling it to effectively manageits balance sheet structure. OTE ANNOUNCES THE SIGNING OF THE AGREEMENT FOR THE SALE OF INFOTE On November 30, 2007, OTE announced the signing of a definitive agreement withRhone Capital LLC and Zarkona Trading Limited for the sale of 100% of INFOTE,its classified directory information subsidiary. The total value of thetransaction was €300mn. The sale of INFOTE was finalized on December 20, 2007. OTE ANNOUNCES REDUCED ADSL TARIFFS AND NEW INTERNET ACCESS SPEED On December 18, 2007, OTE announced prices reduced by up to 44.5% for allcustomers, free access speed upgrade from 768 Kbps to 1024 Kbps at the new priceof €16.50/month and the new access speed of up to 24 Mbps at the price of €29.90/month. OTE ANNOUNCES THE SPLIT OF ITS GREEK FIXED-LINE'S DIVISION OF BUSINESS ANDRESIDENTIAL CUSTOMERS On December 20, 2007, OTE announced that its Greek fixed-line's Division ofBusiness and Residential Customers was split into two separate entities. The twonew divisions are: Corporate and Business Customers, headed by Mr. EliasDrakopoulos, Managing Director of OTENet, and Residential Customers, headed byMr. Panos Sarantopoulos, Deputy Chief Technology Officer. EXTRAORDINARY SHAREHOLDERS MEETING REQUESTED BY MIG IS AGREED NOT TO TAKE PLACE On December 21, 2007, OTE announced that, following discussions between themanagement of OTE and representatives of Marfin Investment Group (MIG), it wasagreed that it was in the best interest of the company, its shareholders and itsemployees, to refrain from convening the Extraordinary General Meetingpreviously requested by MIG. 5. subsequent events ROMTELECOM ANNOUNCES THE APPROVAL OF ITS BUSINESS PLAN FOR 2008 On January 28, 2008, RomTelecom announced that its Board has approved thebusiness plan for 2008. This was expected to focus on service quality,efficiency and innovation. OTE ANNOUNCES THE RESULTS OF THE VOLUNTARY PUBLIC OFFER FOR COSMOTE On January 31, 2008, OTE announced that the acceptance period of the tenderoffer expired on January 29, 2008. At the end of the acceptance period, OTEowned 331,228,491 shares representing a percentage of 98.59% of the total paidup share capital and voting rights of Cosmote. Within three months as of the endof the acceptance period, OTE has the right to require the transfer to it of allremaining shares (Squeeze-Out Right) at the same price at the offer price of thetender offer, i.e. €26.25 per share. During the same period, the remainingshareholders of Cosmote have the right to sell in the market to OTE their shares(Sell-Out Right) for a consideration of €26.25 per share. After the completionof exercise of the Squeeze-Out Rights and of the Sell-Out Rights, OTE intends toproceed with delisting Cosmote's shares from the ATHEX, as well as any GDRs fromthe LSE. OTE ISSUES €2.1 BILLION IN FIXED COUPON BONDS On February 6, 2008, OTE announced that it had successfully completed theprevious day the bookbuilding process for the issuance, by its 100% ownedsubsidiary OTE Plc, of €1.5bn 3-year Fixed Rate Notes and of €600mn 7-year FixedRate Notes. The 3-year Fixed Rate Notes, priced at 99.750%, will pay an annualcoupon of 5.375%, while the 7-year Fixed Rate Notes, priced at 99.705%, will payan annual coupon of 6%. 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 Plcthat OTE had taken in November 2007, for the purpose of the Cosmote minoritiesacquisition. At completion, the total cost of the acquisition will reach€2.85bn, funded by the bridge facility (€2.1bn) and OTE's own cash reserves (•750mn). Following this transaction, the fixed/floating ratio for OTE's proformadebt stands at approximately 80/20 and the average cost of debt at 5%. OTE ANNOUNCES THE SELLING OF ITS STAKE IN OTENET CYPRUS LTD AND OTENETTELECOMMUNICATIONS LTD On February 28, 2008, OTE announced that the Cypriot company Cyprus TradingCorporation Plc (CTC) agreed to acquire OTE Group's stakes in the companiesOTENET Cyprus Ltd and OTENET Telecommunications Ltd for €3.9mn. The agreement issubject to approval by the relevant authorities. OTE ANNOUNCES AN EMPLOYEE EXIT PROGRAM FOR 2008 On February 28, 2008, OTE announced that it had reached an agreement with theunions regarding an employee exit program. Under this program, which is similarin type to the ones OTE had been implementing since 1996, employees who have oneto five remaining years of service until normal retirement will respectively getexit bonuses that range from €5,000 to €40,000, in order to depart during 2008.Approximately 200 OTE employees are eligible for this employee exit program.Departures will start on April 11, 2008 and all employees participating in theprogram will leave the company until the end of 2008. 6. Outlook In view of the developments announced earlier this week, OTE management hasdecided not to hold the three-year business plan presentation initiallyscheduled for early April. Regarding the outlook for 2008, management stands bythe guidance provided in March 2007, at the time of its previous three-yearbusiness plan. In 2007, market developments and OTE's performance in the Greek fixed-linesegment were largely in line with the company's guidance and business planassumptions. The sole area of material discrepancy concerns the development oflocal loop unbundling (LLU), whose rate of growth was significantly higher thananticipated due to regulatory decisions. Conversely, however, fixed-to-mobilesubstitution evolved at a slower than anticipated pace. Reflecting this andother factors, Greek fixed-line revenue erosion in 2007 was slightly slower thanthe rate of decline implied by the negative 4% to 5% CAGR indicated in March2007. For 2008, management expects a rate of revenue decline of approximately 4%to 5%. Reflecting the current situation, OTE expects total LLU by the end of2008 to approximately double from the level reached at 2007 year end. In broadband, OTE expects the total Greek ADSL market, including LLU, to grow byabout 50% in 2008. OTE expects its combined retail and wholesale market share toremain stable. Regarding expenses, OTE expects Greek fixed-line headcount to be reduced by morethan 800 people over the course of 2008. Operating expenses should be positivelyimpacted by a number of projects regarding distribution network optimization. All told, OTE expects Greek fixed-line OIBDA margin for 2008 to be unchangedfrom the 2007 level. Regarding RomTelecom, the Romanian fixed-line market remains extremelychallenging due to intense competition from cable and mobile telephonyoperators. In this context, RomTelecom expects development of broadband and DTHTV offers to offset the shortfall in traditional telephony services. The companyis assessing plans to further reduce headcount. Due to higher marketing andcustomer acquisition costs, management expects OIBDA margin in 2008 to dropbelow the 2007 levels. Cosmote expects to pursue its strong performance both in the mature Greek marketand across its international footprint. In Greece, despite intensifyingcompetition, Cosmote should leverage its superior infrastructure, broaddistribution and innovative product offering, to retain its leadership positionand above market growth-rates. International operations should continue toachieve rapid growth, and Cosmote Romania is expected to turn OIBDA positivewithin the year. All told, in 2008, Cosmote expects both revenues and OIBDA togrow by approximately 15%, in line with previously indicated guidance. At the Group level, OTE will implement a number of projects aimed at leveragingsynergies across units, with particular emphasis on distribution, logistics andprocurement, following the full integration of Cosmote within OTE. Regarding real estate, a valuation under IFRS of OTE's Greek property assets(OTE Estate) has been completed, indicating a value in the vicinity of €1.6bn.OTE Estate is in the process of releasing part of this value through a series ofprojects. A real estate investment trust (REIT) is being established and will belisted on the Athens Stock Exchange before the end of 2008. Initially, OTEEstate will contribute to this REIT a number of buildings with a value in excessof €250mn. Further additions will follow as OTE Estate develops land andbuildings. In 2008, Capital Expenditure is expected to remain at the level achieved in thepast year, as lower CAPEX at Cosmote and RomTelecom should be offset by higherinvestment in Greek Fixed-Line and at OTE Estate. About OTE OTE Group is Greece's leading telecommunications organization and one of thepre-eminent players in Southeastern Europe, providing top-quality products andservices to its customers. Apart from serving as a full service telecommunications group in the Greektelecoms market, OTE Group has also expanded during the last decade itsgeographical footprint throughout South East Europe, acquiring stakes in theincumbent telecommunications companies of Romania and Serbia, and establishingmobile operations in Albania, Bulgaria, the Former Yugoslav Republic ofMacedonia and most recently in Romania. At present, companies in which OTE Grouphas an equity interest employ over 30,000 people in six countries, and ourportfolio of solutions ranges from fixed and mobile telephony to Internetapplications, satellite, maritime communications and consultancy services. Listed on the Athens Stock Exchange, the company trades under the ticker HTO aswell as on the New York Stock Exchange under the ticker OTE. In the U.S., OTE'sAmerican Depository Receipts (ADR's) represents 1/2 ordinary share. Additional Information is also available on http://www.ote.gr. Contacts: OTE: Dimitris Tzelepis - Head of Investor Relations Tel: +30 210 611 1574, Email: dtzelepis@ote.gr Nektarios Papagiannakopoulos - Senior Financial Analyst Tel. +30 210 611 7593, Email: npapagiannakopoulos@ote.gr Daria Kozanoglou - Communications Officer, Investor Relations Tel: +30 210 611 1121, Email: nkozanoglou@ote.gr Christina Hadjigeorgiou - Financial Analyst Tel: +30 210 611 1428, Email: cchatzigeo@ote.gr Forward-looking statement Any statements contained in this document that are not historical facts areforward-looking statements as defined in the U.S. Private Securities LitigationReform Act of 1995. All forward-looking statements are subject to various risksand uncertainties that could cause actual results to differ materially fromexpectations. The factors that could affect the Company's future financialresults are discussed more fully in the Company's filings with the U.S.Securities and Exchange Commission (the "SEC"), including the Company's AnnualReport on Form 20-F for 2006 filed with the SEC on June 28, 2007. OTE assumes noobligation to update information in this release. Exhibits to follow: I. Consolidated Balance Sheets as of December 31, 2007 and December 31, 2006 (Under IFRS) II. Consolidated Income Statements for the three months and twelve months ended December 31, 2007 and 2006 (Under IFRS) III. Analysis of Group Other Operating Expenses for the three months and twelve months ended December 31, 2007 and 2006 (Under IFRS) IV. Consolidated Statement of Cash Flows for the four quarters and twelve months ended December 31, 2007 (Under IFRS) V. Group Revenues for the three months and twelve months ended December 31, 2007 and 2006 (Under IFRS) VI. Segment Reporting based on the Company's legal structure VII. International Assets VIII. Operational Highlights EXHIBIT I - BALANCE SHEET HELLENIC TELECOMMUNICATIONS ORGANIZATION S.A. (OTE) CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 2007 AND DECEMBER 31, 2006 (• mn) Dec 2007 Dec 2006 --------- ---------ASSETS Non - current assets:Telecommunication property, plant andequipment 6,371.4 6,583.5Goodwill 541.5 540.8Telecommunication licenses 396.2 384.2Investments 158.4 158.7Advances to pension funds 229.8 188.1Deferred taxes 94.6 127.4Other non-current assets 678.6 709.7 ------- -------Total non - current assets 8,470.5 8,692.4 ------- ------- Current assets:Inventories 201.7 205.4Trade receivables 1,172.0 1,160.5Other current assets 372.5 447.8Cash and cash equivalents 1,316.3 2,042.5 ------- -------Total current assets 3,062.5 3,856.2 ------- ------- TOTAL ASSETS 11,533.0 12,548.6 ======= ======= EQUITY AND LIABILITIES Equity attributable to equity holders ofthe parent:Share capital 1,171.5 1,171.5Share premium 485.9 485.9Statutory reserve 312.1 283.3Consolidation reserve (2,533.8) (580.3)Retained earnings 2,595.8 2,304.4 -------- -------- 2,031.5 3,664.8 -------- --------Minority interest 1,023.1 1,223.9 -------- -------- Total equity 3,054.6 4,888.7 -------- -------- Non - current liabilities:Long-term debt 3,947.1 4,037.3Reserve for staff retirement indemnities 230.3 198.5Reserve for voluntary retirement program 217.5 361.4Reserve for Youth Account 273.5 277.3Other non - current liabilities 233.6 126.9 -------- --------Total non - current liabilities 4,902.0 5,001.4 -------- -------- Current liabilities:Suppliers 931.5 938.0Short-term loans 1,497.4 25.2Short-term portion of long-term loans 83.3 528.0Income taxes payable 83.0 142.0Deferred revenue 189.2 196.2Dividends payable 4.0 3.7Reserve for voluntary retirement program 200.2 316.7Other current liabilities 587.8 508.7 -------- --------Total current liabilities 3,576.4 2,658.5 -------- -------- TOTAL EQUITY AND LIABILITIES 11,533.0 12,548.6 ======== ======== Movement in OTE Group Shareholders' equity -------------------------------- 2007 ---------- Shareholders' equity, January 1 4,888.7 ----------Profit for the period 773.0Dividends declared (350.8)Other movements recognized directly in equity (2,256.3) ---------- (1,834.1) ---------- ==========Shareholders' equity, December 31 3,054.6 ========== EXHIBIT II - CONSOLIDATED INCOME STATEMENT HELLENIC TELECOMMUNICATIONS ORGANIZATION S.A. (OTE) AND SUBSIDIARIES Prepared under IFRS for the three months and twelve months ended December 31, 2007 and 2006 (• mn) Q4'07 Q4'06 % 12M'07 12M'06 % Change ChangeRevenues:DomesticTelephony 481.8 561.7 -14.2% 2,022.2 2,260.6 -10.5%InternationalTelephony 76.7 78.4 -2.2% 304.5 346.9 -12.2%Mobile Telephony 568.8 484.9 17.3% 2,210.0 1,975.8 11.9%Other 504.9 463.8 8.9% 1,783.1 1,308.0 36.3% --------- --------- --------- ---------Total Revenues 1,632.2 1,588.8 2.7% 6,319.8 5,891.3 7.3% ========= ========= ========= ========= OperatingExpenses:Payroll andemployeebenefits (320.2) (310.5) 3.1% (1,241.3) (1,241.6) 0.0%Voluntaryretirement costs 0.0 0.0 - (22.1) 49.8 -Payments tointernationaloperators (54.4) (56.6) -3.9% (216.4) (208.8) 3.6%Payments todomestictelephonyoperators (168.5) (174.9) -3.7% (655.3) (720.9) -9.1%Depreciation andamortization (307.0) (289.6) 6.0% (1,171.8) (1,128.5) 3.8%Cost oftelecommunications equipment (197.1) (205.0) -3.9% (672.8) (363.5) 85.1%Other operatingexpenses (370.4) (333.2) 11.2% (1,293.2) (1,189.5) 8.7% --------- --------- --------- ---------Total OperatingExpenses (1,417.6) (1,369.8) 3.5% (5,272.9) (4,803.0) 9.8% ========= ========= ========= ========= Operating Income 214.6 219.0 -2.0% 1,046.9 1,088.3 -3.8%Other income /(expense):Interest income 19.5 22.0 -11.3% 77.8 70.8 9.9%Interest expense (74.9) (140.9) -46.8% (238.7) (278.8) -14.4%FX gain/(loss),net (5.5) 1.0 - (4.8) 4.2 -Financial net (60.9) (117.9) -48.3% (165.7) (203.8) -18.7%Dividends 0.4 0.5 -20.0% 16.8 23.0 -27.0%Investmentincome/(loss)/Gain on sale ofinvestment 242.0 170.2 42.2% 256.8 176.3 45.7% --------- --------- --------- ---------Total Otherincome /(expense) 181.5 52.8 243.7% 107.9 (4.5) - Profit beforeincome taxes 396.1 271.8 45.7% 1,154.8 1,083.8 6.6% ========= ========= ========= ========= Income taxes (164.9) (107.0) 54.1% (381.8) (353.0) 8.2% --------- --------- --------- --------- Profit for theperiod 231.2 164.8 40.3% 773.0 730.8 5.8% ========= ========= ========= ========= Attributable to:Shareholders ofthe parent 229.6 129.1 77.8% 662.6 574.6 15.3%Minorityinterest 1.6 35.7 -95.5% 110.4 156.2 -29.3% --------- --------- --------- --------- 231.2 164.8 40.3% 773.0 730.8 5.8% ========= ========= ========= ========= EXHIBIT III - GROUP OTHER OPERATING EXPENSE ANALYSIS (• mn) Q4'07 Q4'06 % Change 12M'07 12M'06 % ChangeCommission to dealers 79.9 48.4 65.1% 244.1 203.0 20.2%Repairs, maintenance, 49.3 62.1 -20.6% 201.8 199.0 1.4%cost of materialsProvision fordoubtful 17.3 26.9 -35.7% 88.0 97.9 -10.1%accountsAdvertising 60.8 42.4 43.4% 208.3 164.0 27.0%Taxes other thanincome taxes 13.9 12.6 10.3% 56.3 47.1 19.5%Other 149.2 140.8 6.0% 494.7 478.5 3.4% TOTAL 370.4 333.2 11.2% 1,293.2 1,189.5 8.7% EXHIBIT IV - CONSOLIDATED STATEMENT OF CASH FLOWS HELLENIC TELECOMMUNICATIONS ORGANIZATION S.A. (OTE) AND SUBSIDIARIES Prepared under IFRS for the four quarters and twelve months ended December 31, 2007 (• mn) Q1'07 Q2'07 Q3'07 Q4'07 12M'07Cash Flows from OperatingActivities: Profit before taxes 241.2 257.4 260.1 396.1 1,154.8Adjustments to reconcileto net cash provided byoperating activities: Depreciation and 279.3 291.5 294.0 307.0 1,171.8 amortization Provisions for 22.1 - 0.0 0.0 22.1 voluntary retirement Provisions 47.3 57.1 51.4 42.7 198.5 Investments and (38.3) (54.0) 2.1 (256.4) (346.6) financial income/loss Amortization of 8.8 8.8 8.8 8.8 35.2 advances to pension funds Interest expense 57.4 49.4 57.0 74.9 238.7 Adjustments for workingcapital movements relatedto operating activities Decrease/(increase) in (2.5) (14.5) 25.5 (10.5) (2.0) inventories Decrease/(increase) in (51.9) (68.0) (40.1) 32.1 (127.9) trade receivables (Decrease)/increase in (183.7) (73.3) (89.9) 54.3 (292.6) liabilities Minus: Interest paid (46.3) (31.9) (80.5) (57.7) (216.4) Income taxes paid (12.8) (70.4) (144.5) (157.2) (384.9) ------- ------- ------ ------- -------Net Cashprovided byOperatingActivities 320.6 352.1 343.9 434.1 1,450.7 ------- ------- ------ ------- ------- Cash Flows from InvestingActivities: Acquisition of (19.3) (11.8) (11.3) (2,076.6) (2,119.0) subsidiary or associate, net of cash acquired Loans granted (53.6) (34.3) (23.8) (9.9) (121.6) Purchase of property, (223.2) (244.1) (230.8) (403.2) (1,101.3) plant and equipment or intangible assets Proceeds from sale of 6.3 28.5 33.9 284.1 352.8 investment Other long-term 144.5 - 0.0 0.0 144.5 liabilities Interest received 13.7 13.7 8.7 16.0 52.1 Dividends received - 6.3 0.3 5.7 12.3 ------- ------- ------ ------- -------Net Cash usedin InvestingActivities (131.6) (241.7) (223.0) (2,183.9) (2,780.2) ------- ------- ------ ------- ------- Cash Flows from FinancingActivities: Proceeds from minority shareholders for increase of subsidiary's share capital 12.6 0.0 0.0 0.0 12.6 Proceeds from long-term debt and short-term borrowings 0.0 0.0 0.0 1,500.0 1,500.0 Repayment of long-term (519.6) (9.1) (23.3) (6.4) (558.4) debt and short-term borrowings Dividends paid (0.4) (82.1) (268.5) 0.1 (350.9) ------- ------- ------ ------- -------Net Cashprovided/(usedin) byFinancingActivities (507.4) (91.2) (291.8) 1,493.7 603.3 ------- ------- ------ ------- ------- (318.4) 19.2 (170.9) (256.1) (726.2)Net Increase/(Decrease) inCash and Cash EquivalentsCash and Cashequivalents atbeginning ofperiod 2,042.5 1,724.1 1,743.3 1,572.4 2,042.5 ------- ------- ------ ------- -------Cash and CashEquivalents atend of period 1,724.1 1,743.3 1,572.4 1,316.3 1,316.3 ======= ======= ======= ======= ======= EXHIBIT V - GROUP REVENUES HELLENIC TELECOMMUNICATIONS ORGANIZATION S.A. (OTE) AND SUBSIDIARIES Prepared under IFRS for the three months and twelve months ended December 31, 2007 and 2006 (• mn) Q4'07 Q4'06 % Change 12M'07 12M'06 % ChangeDomestic Telephony:Basic monthly rentals 237.6 257.4 -7.7% 988.1 995.7 -0.8%Local and long distance calls -Fixed to fixed 131.8 170.4 -22.7% 565.5 702.6 -19.5% -Fixed to mobile 90.1 109.6 -17.8% 378.3 470.2 -19.5% ----- ----- ----- ----- 221.9 280.0 -20.8% 943.8 1,172.8 -19.5% ===== ===== ===== =====Other 22.3 24.3 -8.2% 90.3 92.1 -2.0% ----- ----- ----- -----Total Domestic Telephony 481.8 561.7 -14.2% 2,022.2 2,260.6 -10.5% ===== ===== ===== ===== International Telephony:International traffic 25.5 30.2 -15.6% 108.1 132.3 -18.3%Payments fromInternational mobileoperators 12.5 11.0 13.6% 49.6 41.9 18.4% ----- ----- ----- ----- 38.0 41.2 -7.8% 157.7 174.2 -9.5% ===== ===== ===== =====Payments fromInternational operators 38.7 37.2 4.0% 146.8 172.7 -15.0% ----- ----- ----- -----Total InternationalTelephony 76.7 78.4 -2.2% 304.5 346.9 -12.2% ===== ===== ===== ===== Mobile Telephony 568.8 484.9 17.3% 2,210.0 1,975.8 11.9% ===== ===== ===== ===== Other Revenues:Prepaid cards 16.0 24.9 -35.7% 76.2 100.6 -24.3%Directories 12.8 15.8 -19.0% 55.1 58.0 -5.0%Leased lines and datacommunications 74.2 47.4 56.5% 274.9 246.1 11.7%ISDN, connection &monthly 42.2 39.0 8.2% 166.1 158.9 4.5%chargesSales oftelecommunication 202.3 221.3 -8.6% 679.8 341.6 99.0%equipmentInternet services-ADSL 66.2 41.7 58.8% 227.9 133.1 71.2%Services rendered 34.8 28.1 23.8% 94.6 74.9 26.3%Interconnection charges 28.2 11.7 - 108.2 96.8 11.8%Miscellaneous 28.2 33.9 -16.8% 100.3 98.0 2.3% ----- ----- ----- -----Total Other Revenues 504.9 463.8 8.9% 1,783.1 1,308.0 36.3% ===== ===== ===== ===== Total Revenues 1,632.2 1,588.8 2.7% 6,319.8 5,891.3 7.3% ===== ===== ===== ===== EXHIBIT VI - SEGMENT REPORTING (12M 2007) HELLENIC TELECOMUNICATIONS ORGANIZATION S.A. (OTE) AND SUBSIDIARIES Prepared under IFRS, for the twelve months ended Dec 31, 2007 (• mn) OTE Cosmote Romtelecom All Other Total Adjustments & Consolidated EliminationsRevenues:DomesticTelephony 1,495.4 520.7 9.9 2,026.0InternationalTelephony 197.7 117.3 8.8 323.8MobileTelephony 2,402.3 2,402.3Other 963.8 658.0 233.9 454.9 2,310.7Total 2,656.9 3,060.3 871.9 473.6 7,062.7 (742.9) 6,319.8Revenues ------- ------- --------- ------- ------- --------- --------- IntersegmentRevenues (263.2) (181.7) (28.6) (269.4) (742.9) Revenue fromExternalCustomers 2,393.7 2,878.6 843.3 204.2 6,319.8 6,319.8 ------- ------- --------- ------- ------- --------- --------- OperatingExpenses:Payroll andemployeebenefits (723.8) (207.4) (221.6) (90.3) (1,243.1) 1.8 (1,241.3)Voluntaryretirementcosts (22.1) (22.1) (22.1)Payments tointernationaloperators (146.8) (36.3) (28.0) (61.4) (272.5) 56.1 (216.4)Payments todomestictelephonyoperators (323.9) (393.3) (99.2) (2.9) (819.3) 164.0 (655.3)Depreciationandamortization (502.2) (367.9) (255.8) (47.3) (1,173.2) 1.4 (1,171.8)Cost ofequipment &prepaid cards (101.1) (601.9) (28.7) (19.0) (750.7) 77.9 (672.8)Otheroperatingexpenses (526.3) (835.5) (193.8) (178.5) (1,734.1) 440.9 (1,293.2)TotalOperatingExpenses (2,346.2) (2,442.3) (827.1) (399.4) (6,015.0) 742.1 (5,272.9) ------- ------- --------- ------- ------- --------- --------- ------- ------- --------- ------- ------- --------- ---------OperatingIncome 310.7 618.0 44.8 74.2 1,047.7 (0.8) 1,046.9 ------- ------- --------- ------- ------- --------- --------- Operatingincome beforedepreciationandamortization 812.9 985.9 300.6 121.5 2,220.9 (2.2) 2,218.7----------- ------- ------- --------- ------- ------- --------- ---------as % ofOperatingrevenues 30.6% 32.2% 34.5% 25.7% 31.4% 35.1% EXHIBIT VI - SEGMENT REPORTING (12M 2006) HELLENIC TELECOMUNICATIONS ORGANIZATION S.A. (OTE) AND SUBSIDIARIES Prepared under IFRS, for the twelve months ended Dec 31, 2006 (• mn) OTE Cosmote Romtelecom All Other Total Adjustments & Consolidated EliminationsRevenues:DomesticTelephony 1,596.9 604.6 63.3 2,264.8InternationalTelephony 181.1 126.5 41.4 349.0MobileTelephony 2,091.2 47.6 2,138.8Other 936.5 291.1 163.7 342.9 1,734.2Total 2,714.5 2,382.3 894.8 495.2 6,486.8 (595.5) 5,891.3Revenues ------- ------- --------- ------- ------- --------- --------- IntersegmentRevenues (225.8) (169.7) (17.6) (182.4) (595.5) Revenue fromExternalCustomers 2,488.7 2,212.6 877.2 312.8 5,891.3 5,891.3 ------- ------- --------- ------- ------- --------- --------- OperatingExpenses:Payroll andemployeebenefits (764.9) (143.3) (240.1) (95.1) (1,243.4) 1.8 (1,241.6)Voluntaryretirementcosts 49.8 49.8 49.8Payments tointernationaloperators (143.9) (34.6) (26.1) (14.7) (219.3) 10.5 (208.8)Payments todomestictelephonyoperators (366.8) (388.7) (104.0) (16.9) (876.4) 155.5 (720.9)Depreciationandamortization (528.0) (318.9) (217.5) (67.7) (1,132.1) 3.6 (1,128.5)Cost ofequipment &prepaid cards (128.3) (253.2) (13.9) (8.5) (403.9) 40.4 (363.5)Otheroperatingexpenses (520.3) (686.1) (172.4) (196.8) (1,575.6) 386.1 (1,189.5)TotalOperatingExpenses (2,402.4) (1,824.8) (774.0) (399.7) (5,400.9) 597.9 (4,803.0) ------- ------- --------- ------- ------- --------- --------- ------- ------- --------- ------- ------- --------- ---------OperatingIncome 312.1 557.5 120.8 95.5 1,085.9 2.4 1,088.3 ------- ------- --------- ------- ------- --------- --------- Operatingincome beforedepreciationandamortization 840.1 876.4 338.3 163.2 2,218.0 (1.2) 2,216.8----------- ------- ------- --------- ------- ------- --------- ---------as % ofOperatingrevenues 31.0% 36.8% 37.8% 33.0% 34.2% 37.6% EXHIBIT VII - INTERNATIONAL ASSETS RomTelecom OTE has a 54.01% stake in RomTelecom, which is fully consolidated. ROMTELECOM INCOME STATEMENT For the twelve months ended December 31 2007, in accordance with IFRS (• thousand) 12M'07 Basic monthly rentals 313,241Domestic Telephony calls 207,492 -----------Domestic Telephony 520,732International Telephony 117,277Other Revenues 233,880 -----------Total Operating Revenues 871,889 Personnel (inc Voluntary Redundancy) (221,630)Other operating expenses (349,901)Depreciation and Amortization (292,227) -----------Total Operating expenses (863,758) Operating income 8,131 Financial, net (including share of Cosmote Romania losses) (26,669) Income before provision for income taxes (18,538) Provision for Income taxes (2,588) -----------Net income (21,126) =========== EXHIBIT VIII -OPERATIONAL HIGHLIGHTS -------------------------------- Operational Highlights for the quarters ended December 31, 2007 and 2006 --------------------------------OTE Q4'07 Q4'06 % ChangePSTN lines 4,509,564 4,778,245 -5.6%ISDN, 64kb equiv. lines 1,344,616 1,382,124 -2.7%Total lines 5,854,180 6,160,369 -5.0% ADSL subscribers 824,915 487,799 69.1%Unbundled local loops 309,614 24,635 1156.8% COSMOTE (Greece)Pre-paid sub. 4,229,170 3,368,170 25.6%Contract sub. 2,039,457 1,849,757 10.3%Total subscribers 6,268,627 5,217,927 20.1% AMCTotal subscribers 1,195,183 990,279 20.7% GLOBULTotal subscribers 3,872,922 3,270,878 18.4% COSMOFONTotal subscribers 593,026 472,501 25.5% COSMOTE ROMANIATotal subscribers 3,616,274 1,225,603 195.1% Employees: -OTE 11,348 11,755 -3.5% -COSMOTE (Greece) 2,185 2,158 1.3% -RomTelecom 12,512 12,257 2.1% -------- -------- -------- This information is provided by RNS The company news service from the London Stock Exchange