Cyta puts profits to good use

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Cyprus’ Telecommunications Authority (Cyta) is to absorb the additional cost of inflation and energy, putting their record profits to good use.

Talking before the House Finance Committee, the chair of Cyta Michalis Ioannides said the increased energy cost, services, and materials will not be rolled down to consumers.

As a result of investments made in previous years, the organisation expects record revenue for 2022.

The authority is expected to report profits of around €400 mln for 2022, with profitability at similar levels to last year, which is at the highest level for a decade.

And the driving force behind the authority’s revenue growth is increased sales of terminal equipment and telecommunications infrastructure.

He also stated that an essential revenue stability factor was the steady and recurring customer increase in the main connectivity services.

Mobile telephony subscribers showed an increase of 2.6%, and broadband connections rose 2.4%, while cable TV subscribers are expected to increase in 2023.

Ioannides added that for the second consecutive year, Cyta had the fastest mobile internet network in Europe, covering the island’s population with 5G services since March.

Regarding Cyta’s 2023 budget, Ioannides said it includes €207 mln for investments in technology infrastructure development, including the completion of its Fiber network by the end of 2023, two submarine cables connecting Cyprus with the rest of the world, and investments for energy autonomy.

DIKO MP Chrysis Pantelides said that the House has a positive view of Cyta, noting that the authority has contributed €1.2 bln to state coffers over the past 20 years.

In 2023, Cyta revenues are budgeted at €386.8 mln, recording an increase of 4.01% compared to 2022, and expenses are estimated at €575.7 mln, an increase of 32.5% compared to this year.