Updated guidance (based on US GAAP) regarding the second-half and full-year profitability of its domestic fixed-line operations.
The Company indicated that full-year 2004 Operating Income before Depreciation and Amortization in its Greek fixed-line activities should be significantly below previous guidance and comparable 2003 performance.
Based on current company estimates, the decline in Greek fixed-line operating revenues for the full year should be roughly in line with the level recorded in the first half. Fixed-line operating revenues have been significantly impacted by the Regulator's decision to impose lower tariffs on a number of products and services. At the same time, the deterioration in the Company's Operating Income before Depreciation and Amortization has been exacerbated by a number of factors, including continuing increases in Personnel Expenses and Other Operating Expenses, only partly attributable to the 2004 Olympic Games.
Despite the continued strong performance of all its other activities, the decline in domestic fixed-line profitability will have a detrimental impact on the Group's overall results for 2004.
Mr. Panagis Vourloumis, Chairman and CEO, noted: 'We are taking measures in many directions to address this situation with the urgency it requires; these measures will include the reorganization of our Greek fixed-line operations and headcount reductions.' OTE will announce third quarter 2004 results together with detailed outlook for the full year on November 25, 2004.