Cyta in Greece: “We’re here to stay”

After a year of operations in Greece, Cyprus’ state-owned telco, Cyta, announced that it continues to implement its business plan for the Greek market “with great success” and far exceeded its initial expectations, denying press reports that its Greek subsidiary was in trouble or a possible takeover target.
“From time to time, Cyta considers proposals for strategic alliances which could assist the Organisation in achieving its business aims. In this context, Cyta is in contact with other companies but in no instance has there ever been any question of a takeover of its subsidiary in Greece,” the company said.
Cyta Hellas has already built up its own 1,450 km optical network and installed equipment to serve more than 80,000 broadband customers, and it is gradually expanding into other regions.
“The company’s financial situation and Cyta’s unwavering support mean that its future is assured. The idea of selling off or incorporating Cyta Hellas into another company is, therefore, completely out of the question,” the announcement said, despite reporting a start-up loss of 7.43 mln euros until the end of 2008, with projected investments reaching 33.2 mln euros.
The state owned telecoms giant Cyta reported a 7% increase in Group revenue last year to EUR 484.32 mln compared to EUR 454 mln in 2007, while net profits climbed 27% YoY to EUR 102.96 mln in 2008, from EUR 81.24 mln reported in 2007.
Former chairman Stavros Kremmos had said 2008 was an extremely productive year while continuing with strategic investments with total losses from overseas operations amounting to EUR 10 mln in Hungary, the U.K. and Greece.
Cyta Hellas operates broadband telecom services in northern and Crete, implementing a project promoted and supported by the Greek government, which aims at the development and penetration of broadband services in provincial Greece.