CYTA the state-owned telecom of Cyprus plans to spend EUR 50 mln in new investments as part of its expansion drive into Greece, CYTA Chairman Stavros Kremmos said during the presentation of the 2007 Annual Report.
“We are already active in Greece with our own network of 700km in 13 municipalities in the northern regions of Greece covering 1 mln population, but we want to expand more and add new services, with the first due from October 2008,” said Kremmos.
He told the Financial Mirror that while CYTA’s foray into the UK and Hungary had not yielded the best results, Cyprus’ leading telecom was determined to push ahead with its overseas expansion plans.
CYTA is also promising a host of new services in Cyprus, mostly geared to the business community with Kremmos promising that DSL bandwidth capacity will be doubled from current low levels while prices cut in half.
In response to a question by the Financial Mirror that even after a 50% reduction in price, DSL connection rates would be among the most expensive in Europe, Kremmos said the small size of Cyprus, its geographical position and lack of wide usage of DSL connections were some of the factors hampering higher bandwidth at lower prices.
Profit forecast
CYTA’s Chairman forecast that 2008 profits would be in the same region as those of 2007. During 2007, CYTA reported total revenue of EUR 454 mln, up 6.5% compared to EUR 426 mln revenue in 2006, while the net surplus was up 39% to EUR 81.2 mln in 2007 compared to EUR 58.5 mln in 2006.
Kremmos said CYTA’s Board of Directors would decide the level of dividend that the company would pay to the government. He clarified that all semi-governmental organizations are required by law to pay a dividend from their surplus funds.
The own capital and reserves of CYTA as at end of 2007 amounted to EUR 858 mln while the surplus cash held in bank deposits amounted to EUR 271 mln, making the company one of the wealthiest companies in Cyprus.
No issue with Vodafone
Kremmos said the fact that CYTA’s partner, Vodafone also had operations in the non-recognised areas of northern Cyprus is a serious issue to be dealt with, but stressed that it requires quiet diplomacy since the presence came as a result of Vodafone’s takeover of Telcim in Turkey.
