Cyta generating smaller profits, MPs hear

Due to ever-growing competition, the state-run telecoms corporation said on Monday that it is generating smaller gross profits and surpluses, but is investing in cutting-edge technologies to stay in the game.

“We face pressure in terms of competition and earnings. The path to the future is strewn with challenges, and we therefore need changes that will enable us to become more efficient,” CyTA chairperson Rena Rouvitha-Panou told MPs.

During a parliamentary discussion of CyTA’s budget for 2019, the semi-governmental organisation said they project a deficit of around €48m.

To cover the deficit CyTA will tap its reserves, which currently stand at €400.4m.

Part of the deficit arises from self-funded capital expenses, such as enhancing the 4G and 4.5G networks, as well as the future rollout of 5G and Fiber-to-the-home.

The balance sheet for 2019 provides for €340.5m in projected revenues and €388.2m in expenditures.

This year’s after-tax surplus comes to €25.2m, down from €40.1m the previous year.

CyTA also plans to spend around €7m on an early retirement scheme, expected to ameliorate the financial situation going forward.

The sale of CyTA Hellas to Vodafone, completed last year, brought €118m into the organisation’s coffers.

The entity’s pension fund has also improved somewhat. The fund’s net present value at the end of 2017 increased by €30.7m to reach €592.7m, while the actuarial deficit fell to €140m.

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