Printer Friendly
The Free Library
14,558,366 articles and books
Member login
User name  
Password 
 
Join us Forgot password?

TIM Hellas' 1st Quarter 2005 Summary Results.


ATHENS, Greece -- TIM TIM Timothy
TIM Technical Interchange Meeting
TIM Transient Intermodulation Distortion
TIM Time Is Money
TIM The Invisible Man (movie)
TIM Telecom Italia Mobile (Italian cellular provider) 
 Hellas Telecommunications SA (NASDAQ NASDAQ
 in full National Association of Securities Dealers Automated Quotations

U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on
: TIMHY)(Amsterdam: TIMHY) today announced their financial and customer results for the first quarter of 2005.

Financial Performance

Total operating revenues accounted for EUR EUR

In currencies, this is the abbreviation for the Euro.

Notes:
The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion.
 184.8 million in the first quarter of 2005, down by 5.5% year-on-year. Service revenues dropped at proportionate levels, down by 5.3% over the first quarter of 2004.

Although TIM Hellas' 1Q05 revenues were supported by the growth seen in contract outgoing traffic revenues, which inclusive of inclusive of
prep.
Taking into consideration or account; including.
 monthly service fees for our successful bundled minutes packages increased by 6.8% year-on-year, the company's top-line performance was affected by the competitive and regulatory pressures of the period.

The most significant factor that led to the decrease seen in the company's top-line growth was the substantial drop in interconnection revenues. More specifically:

--Fixed-to-mobile interconnection revenues fell by approximately 30.2% year-on-year, mainly as a result of a 24.5% drop in the fixed-to-mobile interconnection tariff;

--Mobile-to-mobile interconnection revenues dropped by around 8.7%, year-on-year, mainly as a result of a 19.3% year-on-year decline in mobile-to-mobile interconnection tariff. Inclusive of SMS (1) (Storage Management System) Software used to routinely back up and archive files. See HSM.

(2) (Systems Management Server) Systems management software from Microsoft that runs on Windows NT Server.
 interconnection that commenced in April 2004, mobile-to-mobile interconnection revenues remained flat in the quarter.

If the interconnection tariffs had remained at the same levels as those seen in the first quarter of 2004, total operating revenues would have remained flat year-on-year.

Additionally, the drop seen in revenues was also negatively affected by:

--the 18.0% drop in prepaid outgoing traffic revenues as a result of a smaller prepaid customer base;

--the 9.6% decrease in revenues from equipment sales despite the rise in number of actual units sold, due to the natural trend of declining handset prices.

EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become  (operating profit Operating profit (or loss)

Revenue from a firm's regular activities less costs and expenses and before income deductions.


operating profit

See operating income.
 before depreciation & amortization) for the first quarter of 2005 stood at EUR 49.1 million compared to EUR 52.7 million in the corresponding period of 2004, despite lower overall operating costs-- that remained flat as a percentage of revenues over last year, as lower revenues fed through to the company's profitability. The EBITDA margin on total revenues came in at 26.6% in the period, versus 26.9% in the first quarter of 2004(1).

Operating income Operating Income

The profit realized from a business' own operations.

Notes:
This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit.
 for the period reached EUR 16.9 million or 9.7% of service revenues, versus EUR 19.5 million in the corresponding period of 2004. Consequently, the company's earnings before taxes for the first quarter of 2005 stood at EUR 14.4 million, representing 8.2% of service revenues, versus EUR 16.8 million in the first quarter of last year.

Net income reached EUR 7.8 million, versus EUR 8.5 million in the corresponding period of 2004.

Net financial debt stood at EUR 163.4 million, from EUR 165.9 at the end of 2004(2).

The results are un-audited and based on US Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records.

Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting
 (US GAAP GAAP

See: Generally Accepted Accounting Principles


GAAP

See generally accepted accounting principles (GAAP).
). Certain reclassifications have been made to the presentation of the 1Q04 results to conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?"
fit, meet

coordinate - be co-ordinated; "These activities coordinate well"
 those of the 1Q05.

Customer Results

TIM Hellas' customer base came in at 2,276,348 at the end of March 2005, as compared with 2,323,866 at the end of 2004. Prepaid customers numbered 1,479,730 accounting for 65.0% of the total customer base, while contract subscribers amounted to 796,618.

During the first quarter of 2005, the company once more strengthened its retention of high-value customers, illustrated by the increase in usage: Average monthly traffic per contract customer (contract AMOU) rose by approximately 9% year-on-year to 241.9 minutes, driving blended AMOU growth, which increased by approximately 8.0% to 108.1 minutes in the quarter, versus 100.1 minutes in the corresponding period of last year.

The uptake in contract usage supported a rise in contract ARPU (Average Revenue Per User) A calculation often used to determine the overall value of an application. It is also used to rate particular customers, especially in the wireless space, by comparing someone's account to the overall average.  that grew by 3.6% to EUR 50.3 in the period, offsetting the decline in prepaid ARPU that dropped to EUR 11.3 in the period, thus stabilizing blended ARPU at the same levels as last year of EUR 25.4(3).

"The impact of our currently-implemented turn around plan for TIM Hellas will certainly take some time before becoming visible on our financial results," stated Mr. Socrates Kominakis, TIM Hellas' Chief Executive Officer. "We are confident that our plan based on a combination of growth, rigorous management and dynamic operational activities will help the company realize its full potential and live up to our stakeholders' expectations."

TIM Hellas Telecommunications SA (Nasdaq: TIMHY; Amsterdam: TIMHY) is at the forefront of mobile communications in Europe
  • For more information, see these articles about Communications in Europe.


    [
 and its brand stands for innovative products and services and its stock is publicly traded on the Nasdaq and Amsterdam exchanges.

(1)EBITDA Breakdown
In EUR thousands                1Q05        1Q04        % Change
Total Revenues                  184,826     195,678     -5.5%
Total Operating Costs           167,940     176,145     -4.7%
Operating Income                16,886      19,533      -13.6%
Depreciation and Amortization   32,240      33,130      -2.7%
EBITDA                          49,126      52,663      -6.7%
EBITDA margin on total revenues 26.6%       26.9%


(2)Net financial debt is defined as short-term borrowings plus short-term debt Short-term debt

Debt obligations, recorded as current liabilities, requiring payment within the year.
 due to related companies plus long-term debt Long-Term Debt

Loans and financial obligations lasting over one year.

Notes:
For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt.
, net of current maturities plus long-term debt due to related companies minus cash and cash equivalents.

(3)Contract ARPU is defined as total contract customers service revenues divided by 3, over the period's average contract customers. Prepaid ARPU is defined as total prepaid customers service revenues divided by 3, over the period's average prepaid customers. Blended ARPU is defined as total service revenues divided by 3, over the period's average customers.
COPYRIGHT 2005 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2005, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Date:May 4, 2005
Words:915
Previous Article:Kraft Foods Inc. Announces the Webcast of Investor Day Presentations.
Next Article:Intervolve Releases New Route Accounting System; New Route Accounting Software Empowers Direct Store Delivery Market.



Related Articles
TIM Hellas Appoints New Chief Commercial Officer; Mr. Damianos Charalambidis Assumes the Post.
TIM Hellas Ordinary General Meeting of Shareholders Approves Dividend Distribution.
TIM Hellas Announces Completion of Acquisition of Controlling Stake by New Shareholder.
TIM Hellas Announces the Departure of Chief Financial Officer, Ruggero Caterini.
TIM Hellas Appoints New Chief Financial Officer Dimitris Kouvatsos Replaces Ruggero Caterini.
TIM Hellas Announces Draft Merger Agreement with Troy GAC.
TIM Hellas 1H05 Financial Results: Total Operating Revenues Reach EUR 394.7 Million; EBITDA at EUR 103.5 Million, Margin at 27.8% of Service...
TIM Hellas Board of Directors Approves Merger Report -- Extraordinary General Assembly Set for October 4, 2005.
Sanix Presents Consolidated Financial Highlights for the Fiscal First Quarter Ended June 30, 2005.
Sanix Reports Consolidated Financial Statements for the First Quarter ended June 30, 2006.

Terms of use | Copyright © 2009 Farlex, Inc. | Feedback | For webmasters | Submit articles