Greek Cosmote’s Albanian arm net income rises 8.7% Y/Y

TIRANA, Aug. 24 – Albanian Mobile Communications (AMC), the Albanian unit of Greek mobile phone operator Cosmote, posted an 8.7 percent year-on-year rise in first-half net income to 21.7 million euro, as revenue increased by 8.1%, Cosmote said. AMC’s earnings before interest, tax, depreciation and amortization (EBITDA) rose 5.7% from the same period last year reaching 40.4 million euro. Total operating revenue increased by 8.1% on the year to 69.3 million euro. “AMC sustained its performance, with revenues growing 8.1% in the first half and 8.7% in the second quarter, while maintaining profitability margins at circa 58%,” Cosmote said in its consolidated first-half financial report. “During the first six months of 2006, AMC contributed approximately 7.0% to consolidated revenues and 10% to group EBITDA,” the group said in the report. AMC expanded its market lead while sustaining its profitability levels, it added. The mobile operator added 67,970 customers in Albania during the first half of the year, of which 21,942 were in the second quarter, bringing the total number of customers, mostly prepaid, to 849,466, at end-June. Their numbers were 16.2% higher compared to end-June last year.
Cosmote estimated AMC’s market share at around 52%. AMC is Albania’s first mobile operator. Cosmote bought an 85% state-owned stake in it for $85.6 million in 2000 while the balance is still owned by the government in Tirana AMC competes on the country’s mobile phone market with Vodafone Albania. The third mobile operator, Eagle Mobile that is owned by the fixed-line telecoms operator Albtelecom, is also expected to be launched.