Panafon Hellenic Tel

Final Results

Panafon Hellenic Telecom Co S.A.
16 May 2001

                                 16 May 2001


                       FOR THE YEAR ENDED 31 MARCH 2001

             EBITDA growth 14%, Revenues up 7% EBITDA margin 46%

announces full year results for the 12 months ended 31 March 2001 prepared
according to International Accounting Standards (IAS). 1

Revenues for the period increased to euro 844.9 million (GRD 287.9 bn), a 6.6%
increase compared to the previous period. Airtime and data revenue increased
significantly to euro 688.1 million (GRD 234.5 bn), a 19.2% increase over last
year, despite intense commercial pressures during a period when tariffs were
reduced by 26% for contract and 33% for prepay. Airtime and data revenues now
account for 81.4% of total revenues.

Data revenues (which include SMS and WAP revenues) increased significantly by
130% to euro 73 million (GRD 24.9 bn), representing 8.6% of total revenue
compared with 4% (euro 31.7 million) for the same period last year and
reflecting the success of Panafon - Vodafone's wireless data services
offering. SMS now stands at an average of 36 messages per customer per month.

EBITDA (earnings before interest, tax, depreciation and amortization)
increased by 13.9% to euro 387.9 million (GRD 132.2 bn), compared to the same
period last year. EBITDA margin improved significantly by 2.9 percentage
points from 43% last year to 45.9%, reflecting productivity improvements,
operational efficiencies and better cost control.

Income after Taxes increased to euro 175.3 million (GRD 59.7bn), up 6.4%
compared with the same period last year. Net income margins remained at
healthy levels at 20.7%.

Gross ARPU (monthly average revenue per registered user) for the period ended
31 March 2001 was euro 34.1 (GRD 11,632) compared to euro 44.9 (GRD 15,313)
for the same period last year. As anticipated, the increasing proportion of
prepay customers, who traditionally have lower levels of usage, as well as
overall tariff reductions, have resulted in ARPU declining by 24% for the
period. Data contributed euro 3 (GRD 1,008) in ARPU compared with euro 1.8
(GRD 608) for the twelve months ended March 31st 2000, a 66% increase. Data
ARPU represents 8.7% of Gross ARPU.

Net operating cash flow reached euro 286.4 million (GRD 97.6bn) demonstrating
the company's ability to generate significant positive cash flows and
efficient utilization of resources. This operating cash flow fully funds the
aggressive infrastructure capital expenditure of euro 237.1 million (GRD

Merchandise sales (handset sales) decreased by 40.5% from euro 66.6 million
(GRD 22.7bn) to euro 39.6 million (GRD 13.5bn) for the period, reflecting
lower subsidies and increased sales of prepay through connection only packs
rather than promotion packs (which include a handset), factors which
contributed positively to EBITDA.

Subscriber Acquisition Costs for contract customers reached euro 113 per
customer at the end of the period compared to euro 186 at the beginning of the
period, a reduction of 40%.

Monthly access revenues decreased by 27.3% from euro 135.9 million (GRD 46.3
bn) to euro 98.8 bn (GRD 33.7bn) due to the sharp tariff reductions referred
to earlier in this statement.

All other revenues increased 42.7% from euro 12.9 million (GRD 4.4bn) to euro
18.4 million (GRD 6.3bn).

Panafon - Vodafone 's total customer base reached 2,340,020 at the end of
March 2001, a 32% increase year on year. The increase in customers was driven
mainly by growth in the prepay segment. Net additions for the twelve-month
period to March 2001 totaled 567,146 out of which 505,928 were prepaid. Churn
was reduced to 22.7% from 28.8% for the previous period, a 6.1 percent

Penetration in the Greek cellular market reached 58.4% at the end of the

Panafon - Vodafone believes that competition through subsidies during last
year resulted in significant growth of inactive customers. In line with
Vodafone Group's new disclosure standards, Panafon - Vodafone is now
introducing the concept of inactive customers. Inactive customers are those
who did not generate revenue in the last 3 months. On this basis, 84% of
Panafon - Vodafone 's total customer base was active as at 31 March 2001. The
company believes that this method of reporting customer numbers should become
standard for the industry, as a material portion of all Greek mobile operators
customer base is likely to be inactive. 3

According to the new methodology, the previously recorded ARPU of euro 34.1
(for the year ended 31 March 2000) adjusted for active customers would result
in an active gross ARPU of euro 40.2.

Active customer numbers more accurately reflect the levels of mobile adoption
and will be helpful in determining real trends in ARPU. This is because the
registered customer base contains an element of customer inactivity through
legitimate reasons such as, non-use, upgrading of handsets and other factors.

Panafon - Vodafone 's CEO, Mr. George Koronias, stated: 'The company has again
proven its ability to deliver profitable growth in a year of high competition.
The improvement of its operating margins, the highest among Greek mobile
operators, strengthened Panafon - Vodafone 's leadership in the market. The
new activities that have been announced are completely in line with the
company's strategy of expansion, with the support of Vodafone Group. We are
devoted to the sound, profitable and dynamic company growth, which will allow
us to enhance our investment potential, and effectively materialize our
strategic plans that provide great advantages to our customers, our employees,
the overall society and to our shareholders'.

Summary of Financial Results

                         12 months  12 months    12 months  12 months
                                to         to           to         to         %
                           31-3-01    31-3-01      31-3-00    31-3-00    change
                           Audited    Audited      Audited    Audited
                            Euro m     GRD bn       Euro m     GRD bn

Revenues                     844.9      287.9        792.6      270.1      6.6%
EBITDA                       387.9      132.2        340.7      116.1     13.9%
EBITDA margin                45.9%      45.9%        43.0%      43.0%
Operating Profit (EBIT)      299.3      102.0        276.8       94.3      8.2%
Income before income         279.3       95.2        256.8       87.5      8.8%
Net income                   175.3       59.7        164.8       56.2      6.4%
Earnings per share (GRD)      0.34     116.56         0.32     109.59      6.4%

Customers at 31st March (m)  2.340      2.340        1.773      1.773       32%

Overview of the period:

During the period in question, Panafon - Vodafone made a number of strategic
decisions aimed at enhancing its leadership in the Greek mobile
telecommunications market and enriching its service offering:

*         Panafon - Vodafone was the first Greek mobile operator to commence
commercial distribution of GPRS services for both its retail subscribers and
corporate customers. GPRS services, distributed via the Panafon - Vodafone
network, provide customers with services and benefits at considerably higher
data transmission speeds. GPRS can provide speeds of up to 100 Kbps,
compared with the 9.6 Kbps available under the GSM system.

*         Panafon - Vodafone changed the name of its brand from Panafon to
Panafon - Vodafone, signaling a new era for its customers who now become
members of the world's largest mobile telecommunications family. Panafon -
Vodafone customers now enjoy technologically advanced services and a range of
international products in common with Vodafone's world - wide customer base of
more than 83 million proportionate customers.

*         Panafon - Vodafone was awarded a GSM license in Albania. Bidding in
partnership with Vodafone Group via the joint venture Vodafone International
Holdings BV, Panafon - Vodafone was the highest bidder at US$38 million. The
successful tender represents a further step in Panafon - Vodafone's strategy
of expanding its international presence in the Balkans, a mobile
telecommunications market that offers great growth potential.

*         Panafon - Vodafone acquired a fixed wireless license for the 2x56
MHz frequency block in the 25GHz band. Panafon - Vodafone's license allows the
installation and exploitation of point to multi-point fixed wireless services
(Local Multi-point Distribution System - 'LMDS'). LMDS provides high speed
connection capabilities for customers using voice, data and video
transmission. The introduction of LMDS allows Panafon - Vodafone to provide
integrated telecommunications services and is in line with Panafon - Vodafone
's strategy to become a One Stop Shop for customers.

*         Panafon - Vodafone shareholders' approved the merger with Unifon and
Panafon Emporiki, through the absorption of the two companies by Panafon -
Vodafone, at the Extraordinary General Assembly held on 4 April 2001. The move
provides Panafon - Vodafone direct access to more than 66% of its customer
base. Moreover, Panafon - Vodafone continued restructuring its commercial
distribution network. This restructuring concentrates on creating an owned
chain of Panafon - Vodafone retail outlets. It is estimated that this
restructuring will utilize major economies of scale in the operation of the
commercial network and create substantial management synergies.

*         Panafon - Vodafone announced its participation in a joint venture
with Vizzavi Europe for the creation of Vizzavi Hellas, Vizzavi's Greek
portal, ensuring Panafon - Vodafone remains at the cutting edge of mobile
Internet and e-commerce services.

*         Panafon - Vodafone commenced the commercial distribution of CU. CU
users represent almost 50% of new prepaid customers since the launch of the
service, contributing with significant higher ARPU laying the foundations for
even greater penetration in this market.

*         Panafon - Vodafone announced its intention to acquire a 30% stake in
'Business Exchanges S.A.', a new company that will operate in the mobile
e-commerce field. Panafon - Vodafone 's partners in Business Exchanges S.A.
are EFG EUROBANK ERGASIAS, and HELLAS ON LINE. Business Exchanges S.A. is a
major business initiative in the field of mobile business-to-business services
and facilitates the creation of e-Marketplaces.

*         Panafon - Vodafone commenced mobile telecommunications services on
the Attiko Metro, the Athens metropolitan train service, the first cellular
operator to provide coverage on the system.

*         Panafon - Vodafone reached an agreement to acquire 51% of the share
capital in Ideal Telecom. This agreement will contribute significantly to the
development of Panafon - Vodafone 's strategy in the data communications

*         Panafon - Vodafone made several changes to its senior executive
management. Mr. George Stefanopoulos assumed Business Development &
International Expansion Director duties and Mr. Efthimis Sassalos assumed
duties as Corporate Affairs Executive. Mr. Theodoros Hadjiandreou was
appointed Managing Director of Panafon Services , Mr. Charalambos Mazarakis
was appointed Chief Financial Officer, Mr. Marios Dellatolas was appointed
Human Resources Director, Mr. Christos Varsamis was appointed Sales Director
and Mr. Socrates Cominakis was appointed Marketing Director.

*         A new Board of Directors was appointed for a five year term at the
Extraordinary General Assembly held on 4 April 2001. Panafon - Vodafone 's
Board of Directors now comprises: Chairman: Socrates Kokalis; Vice-Chairman:
Tryfon Koutalides; CEO: George Koronias; Members: Vittorio Colao, Hans Anthony
Kuropatwa, Emmanuele Tournon and Paolo Huscher.

1         Euro exchange rate: EURO = 340.75 GRD

2        Calculated using a Greek population of 10.9 million

3        In line with all other Vodafone subsidiaries, Panafon - Vodafone
announces an adjusted ARPU figure according to the Group methodology

*         Registered ARPU is calculated for the twelve-month period to 31
March 2001 and excludes handset revenues and connection fees, divided by the
weighted average number of customers for the period (this is a more accurate
way of calculating net ARPU).

*         Active ARPU has been calculated by adjusting registered ARPU for the
proportion of active subscribers as at 31 March 2001.

Based on the above methodology adjusted ARPU per active cellular customer for
the twelve-month period ended March 2001, was euro 34.8 per month compared
with euro 29.4 of registered ARPU.

For Further Information Contact:

Dimitris Tsorbatzoglou
Head of Investor Relations  Tel: +301 6160019
[email protected], website

Lulu Bridges or Stuart Carson,
Tavistock Communications, Tel:  +(44) 20 7600 2288

Nicolas Bornozis ,
Capital Link, Tel: +(1) 212 661 7566

Notes to Editors:

1.       Panafon - Vodafone 's shares are quoted on the Athens Stock Exchange
and its GDSs are quoted on the London Stock Exchange.  The shares and GDS's
began trading on Monday 7 December 1998 in ASE and LSE respectively.

2.        Panafon - Vodafone had 512,500,000 shares in issue (prior to
completion of the merger) and 534,126,396 (after the completion of the merger
with Panafon Emporiki and Unifon on May 11th 2001).

3.       Panafon - Vodafone is a shareholder in:

Panafon Services                           100.00 per cent
Panafon Multimedia                         100.00 per cent
Next Net                                   26.11 per cent
Mobitel                                    25.01 per cent
Ideal Telecom                              51.00 per cent

4.       Panafon - Vodafone was awarded a license to operate a GSM network in
Greece for a period of 20 years in August 1992.  The network commenced
operations on 1 July 1993.

5.       Panafon - Vodafone's shareholding structure is as follows:

Vodafone Group Plc                            52.8 per cent
France Telecom                                2.88 per cent
Intracom S.A                                  8.7 per cent
Free float                                    36.6 per cent


Shares: Athens SE, Reuters PANr.AT. Bloomberg PANF GA. Nominal value GRD 100.
ISIN GRS 307 333 005. SEDOL 556 0349.

GDRs: LSE . Reuters PANq.L. Bloomberg PFH GR, PFHD LI. ISIN US 6981 132 060.
SEDOL 556 0361.

Rule 144A: Bloomberg Nasdaq 2250Q US. ISIN US 6981 131 070. SEDOL 230 2629

Indices: ASE General Index composite (ASE): 4.838%, ASE MAIN GENERAL (ASEAGD):
4.837%,  ASE Telecom Index (ASEDTL): 24.156%, DJ EUROPE ST TEL (SXKP): 0.221%,
(SXXE) : 0.041%, BBG EUROPE TECHN (BETECH): 0.422%., MSCI 3,52% effective from
June 1st

                AS OF 30 SEPTEMBER 2000 AND 31 MARCH 2000 (IAS)        
                According to International Accounting Standards        

(in thousands of Euro)                                                      
                                                  Year ended      Year ended
                                               31 March 2001   31 March 2000
Revenues                                             844,913         792,624
Cost of sales                                      (376,193)       (359,982)
Gross profit                                         468,720         432,642
Selling, general and administrative expenses       (169,407)       (155,889)
Operating Income                                     299,313         276,753
Interest Income/(Expense)                                                   
Interest income                                          337             261
Interest expense                                    (17,599)        (22,351)
Net Interest Expense                                (17,262)        (22,091)
Equity in earnings of associated companies           (2,771)           2,141
Income before income tax expense                     279,280         256,804
Income tax expense                                 (103,967)        (91,983)
Net Income                                           175,313         164,821
Earnings per share (Euro)                               0.34            0.32
Common shares outstanding                        512,500,000     512,500,000

                 CONSOLIDATED BALANCE SHEET AS OF 31 MARCH 2001          
                                AND 31 MARCH 2000                        
                 According to International Accounting Standards         

(In thousands of Euro)                                               
                                              March 31, 2001   March 31, 2000
NON-CURRENT ASSETS                                                   

NETWORK INFRASTRUCTURE,NET                           601,817         430,595
CELLULAR LICENSE, NET                                 61,162          57,630
FIXED AND OTHER ASSETS, NET                           60,176          48,148
GOODWILL                                              29,479          13,161
TRADEMARK                                              7,982           9,259
INVESTMENTS                                           29,439          26,098
DEFERRED INCOME TAXES                                      0           2,839

TOTAL NON-CURRENT ASSETS                             790,055         587,731

CURRENT ASSETS                                                       

INVENTORIES                                            5,032           8,996
OTHER CURRENT ASSETS                                   9,866          14,634
AMOUNTS DUE FROM RELATED COMPANIES                    10,843             974
ACCOUNTS RECEIVABLE, NET                             115,319         123,531
CASH & CASH EQUIVALENTS                                2,241           3,064
TOTAL CURRENT ASSETS                                 143,301         151,199

TOTAL ASSETS                                         933,356         738,930
                 CONSOLIDATED BALANCE SHEET AS OF 31 MARCH 2001     
                               AND 31 MARCH 2000                    
                According to International Accounting Standards     

(In thousands of Euro)                                  

SHAREHOLDERS' EQUITY                                           

SHARE CAPITAL                                        150,404         150,404
RESERVES                                              23,288          23,288
GAIN ON DEEMED DISPOSITION                            13,374          13,374
RETAINED EARNINGS                                    227,544         112,392

TOTAL SHAREHOLDERS' EQUITY                           414,609         299,458

LONG TERM LIABILITIES                                          

DEFERRED TAX LIABILITY                                 8,409               0
STAFF TERMINATION INDEMNITY                            2,735           2,047

TOTAL LONG TERM LIABILITIES                           11,144           2,047

CURRENT LIABILITIES                                            

ACCOUNTS PAYABLE                                     103,928          85,068
SHORT-TERM BORROWINGS                                251,592         187,528
AMOUNTS DUE TO RELATED COMPANIES                       1,338               0
INCOME TAXES PAYABLE                                  40,726          59,933
TAXES AND DUTIES                                       5,053           5,788
DIVIDENDS PAYABLE                                     60,560          55,800
OTHER CURRENT LIABILITIES                             44,405          43,308

TOTAL CURRENT LIABILITIES                            507,603         437,426

TOTAL LIABILITIES                                    518,746         439,473

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY           933,356         738,930

                     AND FOR THE YEAR ENDED 31 MARCH 2000                  
                According to International Accounting Standards            
(In thousands of Euro)                                                 

                                                  Year ended      Year ended
                                               31 March 2001   31 March 2000
Cash flows from operating activities:                                       
Net income                                           175,313         164,821
Adjustments to reconcile to net cash                  96,969          63,194
provided by operating activities                                            
Total changes in operating assets and                 14,131          53,409

Net cash provided by operating activities            286,413         281,423

Cash flows from investing activities:                                       
Capital expenditures                               (268,352)       (169,356)
Investments                                          (1,643)         (9,685)
Investments in associates                           (26,999)         (5,449)
Dividends received                                     1,095             282

Net cash utilised in investing activities          (295,899)       (184,207)

Cash flows from financing activities:                                       
Proceeds/(repayments) from short-term                 64,065        (46,368)
Dividends paid                                      (55,401)        (49,482)

Net cash provided by financing activities              8,663        (95,851)

Net decrease in cash and cash equivalents              (823)           1,366
Cash and cash equivalents at beginning of              3,064           1,698
Cash and cash equivalents at end of year               2,241           3,064