OTEGLOBE records growth once again, according to its 2014 financial results.
OTEGLOBE’s revenues reached €287,15 mn presenting an increase of 2% Vs 2013. Since 2007, the company has increased its revenues by 74% (from €165,1 mn to €287,15 mn), by recording a year-to-year revenues increase. 80% of the 2014 total revenues come from international customers.
At the same time, OTEGLOBE recorded the impressive 57% increase in net cash flows from operating activities, which reached €15,2 mn in 2014 from €9,6 mn in 2013. This is mainly a result of the company’s operational profitability and of more efficient working capital management.
EBITDA reached €18,4 mn in 2014, presenting a small decrease Vs 2013 (€23 mn). This is mainly due to the increasing competition and the corresponding price erosion, both in voice services (decrease in termination rates in Greece and Europe) and data services, in the markets that OTEGLOBE mainly operates (Greece and S.E. Europe). Major drawback was also the delay or postponement of business plans in the broader Middle East and Northern Africa markets, due to the uncertainty and political instability in various countries.
By capitalizing on Greece’s geographic advantage, OTEGLOBE has already implemented its expanding strategy in the new markets of M. East and N. Africa, through investments and partnerships with major carriers.
In this context, in January 2014, seventeen of the world’s most prominent telecom service providers, among them OTEGLOBE, have joined forces to construct the new next generation international submarine cable, one of the largest and unique high capacity cable system of the world, the Asia Africa Europe-1 (AAE-1).
The AAE-1 submarine cable spanning approximately 25,000 km, will be one of the first unique cable systems connecting Hong Kong, Singapore, Middle East, Africa and Europe and providing an alternative low latency route between Far East and Europe. Major part of this traffic, will pass through Greece and the Chania cable station. The target completion date for AAE-1 cable construction is 2016-2017.