PANAFON HELLENIC TELECOM CO S.A.
26 August 1999
PANAFON ANNOUNCES STRONG GROWTH IN PROFITS AND REVENUES FOR THE QUARTER ENDING
JUNE 1999
according to the consolidated financial statements and based on the Greek
Generally Accepted Accounting Principles*
Revenue: GRD 67.7 bn +28.2%
EBITDA: GRD 25.8 bn +29.5%
Customers: 1,397,000 +123.9%
PANAFON Hellenic Telecommunications Company S.A. ('PANAFON'), the leading
provider of mobile telecommunications in Greece, today announces strong growth
in profits and revenues for the first quarter of the 1999 financial year
(1/4/99 - 30/6/99)**. Revenues increased by 28.2%, to GRD 67.7 bn, over the
comparative period. This growth was further reinforced by a record of 204,000
net additions for the quarter taking the total customer base to 1,397,000 at
the end of June 1999 from 623,739 at the end of June 1998.
EBITDA (earnings before interest, tax, depreciation and amortisation)
increased to GRD 25.8 bn, up 29.5% over the GRD 19.9 bn reported for the
comparative period. Income before tax amounted to GRD 16,4 bn.
These results are of particular significance as this quarter has been one of
intense competition and commercial pressure. Panafon however, continues to
report strong financial growth and profitability.
Panafon has continued its success in all fields of its activities. Its
commercial network remains the strongest in Greece with more than 2,200
exclusive retail outlets and Panafon will continue to reinforce its position
with continuous development of this commercial network. During the period
Panafon invested GRD 13.1 bn in the expansion and upgrading of its network,
raising the total amount invested to date to GRD 207.9 bn (including the
initial cost of the license).
Panafon continues to offer new innovative products and services such as
'Panafon Value Plus' - Panafon loyalty tariff plan, 'Panafon NetCall' - mobile
access to the internet, upgraded 'Panafon Telerate' - for stock trading
information. Further success has been achieved with the export of management
know-how to Vodafone in the UK, Libertel in Holland, Vodacom in South Africa,
Mobilrom in Romania, Click GSM in Egypt and Globtel in Slovakia.
Panafon's success in all fields ensures that the market leader of the Greek
mobile telecommunications market continues growing and adding value to its
shareholders.
* These financial results are drawn up in accordance with the Greek Generally
Accepted Accounting Principles (GAAP), and are published by Panafon as an
obligation to the Athens Stock Exchange. Panafon will announce financial
results for the six-month period (1/4/1999 to 30/9/99), in accordance with the
International Accounting Standards (IAS), at the end of November 1999.
** Panafon's financial year-end has changed to 31st March. Panafon will
therefore announce 12 month financial results each year for the period from
1st April to 31st March.
Notes to Editors:
1. Panafons' shares are quoted on the Athens Stock Exchange and its GDRs
are quoted on the London Stock Exchange. The shares began trading on
Monday 7 December 1998.
2. Panafon has 256,250,000 shares in issue.
3. Panafon is a shareholder in:
Panavox 100 per cent
Radio Korassidis Telecom 30 per cent
Unifon 25.075 per cent prior to listing
(18.8 per cent after share capital
increase and listing).
4. Panafon was awarded a licence 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's ownership profile is as follows:
Vodafone AirTouch Plc 55 per cent
France Telecom 20 per cent
Intracom S.A. 10 per cent
Free float 15 per cent
PANAFON listings:
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: FTSE/ASE 20, FTASE, 3.267%. Bloomberg Europe, BE500, .140%.
BBG Eur Telecom, BETELES, 1.190%. BBG Europ Techn, BETECH, 1.237%.
Contact: George Stefanopoulos
Panafon S.A
Tel: +301 6160061
Lulu Bridges
Tavistock Communications Limited
Tel: 0171 600 2288
PANAFON HELLENIC TELECOMMUNICATIONS COMPANY S.A.
CONDENSED BALANCE SHEET AS OF 30th JUNE 1999
The condensed financial statements have been prepared in accordance with Greek
accounting principles and methods and have not been audited.
ASSETS 30th June 1999 30th June 1998
B.PRE-ESTABLISHMENT EXPENSES 1,129,439,392 369,538,314
Less: Acc. Amortization 663,199,335 226,986,929
--------------- ---------------
466,240,057 142,551,385
--------------- ---------------
C. FIXED ASSETS
I. Intangible Assets 38,058,349,975 36,015,007,060
Less: Acc. Amortization 13,427,788,793 10,896,829,493
--------------- ---------------
24,630,561,182 25,118,177,567
II.Tangible Assets 167,955,612,284 122,811,215,734
Less: Acc. Depreciation 48,956,362,052 28,969,049,190
--------------- ---------------
118,999,250,232 93,842,166,544
III. Investments and other L.T.
financial claims 8,358,452,889 975,945,657
--------------- ---------------
Total Fixed Assets 151,988,264,303 119,936,289,768
--------------- ---------------
D. CURRENT ASSETS
I. Stocks 4,427,197,480 3,123,901,941
II. Receivables 51,115,948,384 34,477,661,387
IV. Cash and Banks 55,401,074 326,155,820
--------------- ---------------
Total Current Assets 55,598,546,938 37,927,719,148
--------------- ---------------
E. PREPAYMENTS & ACCRUED REVENUES 15,894,458,018 11,277,431,440
--------------- ---------------
TOTAL ASSETS 223,947,509,316 169,283,991,741
============ ============
MEMO ACCOUNTS 45,077,539,729 88,450,635,478
--------------- ---------------
LIABILITIES 30th June 1999 30th June 1998
A. SHAREHOLDERS' EQUITY
I. Share capital 25,625,000,000 25,625,000,000
IV. Legal, other reserves and
retained earnings 33,273,922,172 16,353,327,386
V. Profit for the period
1.4.99 - 30.6.99
before taxes 17,009,343,779 12,837,340,506
--------------- ---------------
Total shareholders' equity 75,908,265,951 54,815,667,892
--------------- ---------------
B. PROVISIONS FOR RISKS
AND EXPENSES 448,742,851 309,652,883
--------------- ---------------
C. LIABILITIES
II. Short term 135,499,489,342 105,809,090,117
--------------- ---------------
D. DEFERRED INCOME AND
ACCRUED EXPENSES 12,091,011,172 8,349,580,849
--------------- ---------------
TOTAL LIABILITIES 223,947,509,316 169,283,991,741
=============== ===============
MEMO ACCOUNTS 45,077,539,729 88,450,635,478
--------------- ---------------
PROFIT AND LOSS ACCOUNT OF THE PERIOD 1.4.99 - 30.6.99
1.4.99 - 30.6.99 1.4.98 - 30.6.98
Revenues 63,419,718,360 47,156,614,904
Less Cost of sales 27,270,544,229 19,932,189,829
--------------- --------------
Gross margin 36,149,174,131 27,224,425,075
Plus Other operating revenue 35,188,772 7,790,078
--------------- --------------
Total 36,184,362,903 27,232,215,153
Less: Administrative expenses 3,151,089,576 2,148,487,776
Selling expenses 13,916,426,394 10,183,605,787
--------------- --------------
Sub total 19,116,846,933 14,900,121,590
Less:Financing costs 2,038,949,376 1,693,070,521
Operating income 17,077,897,557 13,207,051,069
Plus: Non operating revenues 46,451,575 1,420,507,166
Less: Non operating expenses 115,005,353 637,225,304
--------------- --------------
Total 17,009,343,779 13,990,332,931
Less: Depreciation expenses 7,318,423,917 4,850,990,387
Less: Absorbed in operating
expenses 7,318,423,917 4,850,990,387
--------------- --------------
Income of the period before tax 17,009,343,779 13,990,332,931
Less: Previous year taxes
from tax audit 0 1,152,992,425
--------------- --------------
Income of the period before tax 17,009,343,779 12,837,340,506
============== ==============
Notes :
1. The corporate income tax of the period is estimated at GRD 6
bln.
2. At the end of the period the company had 932 employees.
3. The investment in fixed assets of the period 1.4.99 - 30.6.99
was GRD 13 bln.
4. The company has changed its financial year end from 31 December
to 31 March. These financial statements present the results of
the 1st quarter of the financial year from 1.4.1999 to
31.3.2000.
5. The amounts included in the accounts 'reserves and retained
earnings' of the last year's period, have been recorded prior
to posting the arising income tax, which for the period 1.1.98-
30.6.98 is estimated at GRD 9.6 bln.
6. In the accounts 'receivables' and 'short term liabilities' the
amount of GRD 11.6 bln is included and reflects income tax
advance for the financial year 1999-2000. The respective amount
of the last year's period was GRD 5.3 bln.
7. Depreciation expenses of the last year's period have been
adjusted to be comparable to the current period.
Marousi, 24 August 1999
MANAGING DIRECTOR FINANCIAL DIRECTOR ACCOUNTING MANAGER
GEORGE KORONIAS GREGORIS ANASTASIADIS DIMITRIS TSOPELAS
CONDENSED CONSOLIDATED BALANCE SHEET AS OF 30th JUNE 1999
The condensed consolidated financial statements have been prepared in
accordance with Greek accounting principles and methods and have not been
audited.
ASSETS 30th June 1999 30th June 1998
B. PRE-ESTABLISHMENT EXPENSES 1,514,783,487 636,507,434
Less: Acc. Amortization 886,077,665 375,323,146
------------ ------------
628,705,822 261,184,288
------------ ------------
C. FIXED ASSETS
I. Intangible Assets 38,058,349,975 36,015,007,060
Less: Acc. Amortization 13,427,788,793 10,896,829,493
------------ ------------
24,630,561,182 25,118,177,567
II. Tangible Assets 169,839,061,998 123,899,736,804
Less: Acc. Depreciation 49,589,092,131 29,347,924,991
------------ ------------
120,249,969,867 94,551,811,813
III. Investments and other L.T.
Financial claims 3,126,935,521 378,549,210
------------ ------------
Total Fixed Assets 148,007,466,570 120,048,538,590
------------ ------------
D. CURRENT ASSETS
I. Stocks 5,195,306,258 4,320,288,180
II. Receivables 48,487,086,009 35,947,240,836
IV. Cash and Banks 637,661,795 865,602,610
------------ ------------
Total Current Assets 54,320,054,062 41,133,131,626
------------ ------------
E. PREPAYMENTS & ACCRUED REVENUES 17,697,543,808 12,567,253,810
------------ ------------
TOTAL ASSETS 220,653,770,262 174,010,108,314
=========== ===========
MEMO ACCOUNTS 46,245,402,245 91,440,080,336
------------ ------------
LIABILITIES 30th June 1999 30th June 1998
A. SHAREHOLDERS' EQUITY
I. Share capital 25,625,000,000 25,625,000,000
IV. Legal, other reserves and
retained earnings 33,149,134,015 16,344,659,401
V. Profit for the period
1.4.99 - 30.6.99
before taxes 16,433,756,919 12,709,819,964
less: Goodwill (5,181,486,107) 0
------------ ------------
Total shareholders' equity 70,026,404,827 54,679,479,365
------------ ------------
B. PROVISIONS FOR RISKS
AND EXPENSES 578,788,134 386,834,364
------------ ------------
C. LIABILITIES
II. Short term 137,649,955,465 110,046,163,722
------------ ------------
D. DEFERRED INCOME AND
ACCRUED EXPENSES 12,398,621,836 8,897,630,863
------------ ------------
TOTAL LIABILITIES 220,653,770,262 174,010,108,314
============ ============
MEMO ACCOUNTS 46,245,402,245 91,440,080,336
------------ -----------
CONSOLIDATED PROFIT AND LOSS ACCOUNT OF THE PERIOD 1.4.99 - 30.6.99
1.4.99 - 30.6.99 1.4.98 - 30.6.98
Revenues 67,671,276,844 52,798,233,447
Less: Cost of sales 33,032,372,948 25,689,952,576
------------ ------------
Gross margin 34,638,903,896 27,108,280,871
Plus: Other operating revenue 58,920,872 91,884,368
------------ ------------
Total 34,697,824,768 27,200,165,239
Less: Administrative expenses 3,519,570,274 2,745,253,324
Selling expenses 12,780,214,389 9,413,400,142
------------ ------------
Sub total 18,398,040,105 15,041,511,773
Less: Financing costs 1,917,813,533 1,676,259,011
Operating income 16,480,226,572 13,365,252,762
Plus: Non operating revenues 77,080,901 1,441,722,606
Less: Non operating expenses 121,912,803 650,387,477
------------ ------------
Total 16,435,394,670 14,156,587,891
Less: Depreciation expenses 7,436,643,184 4,910,823,107
Less: Absorbed in operating expenses 7,435,005,433 4,907,547,605
------------ ------------
Income of the period before tax 16,433,756,919 14,153,312,389
Less: Previous year taxes from
tax audit 0 1,443,492,425
------------ ------------
Income of the period before tax 16,433,756,919 12,709,819,964
============ ============
Notes :
1. The corporate income tax of the period is estimated at GRD 6
bln.
2. At the end of the period the company had 1,315 employees.
3. The investment in fixed assets of the period 1.4.99 - 30.6.99
was GRD 13.1 bln.
4. The company has changed its financial year end from 31 December
to 31 March. These financial statements present the results of
the 1st quarter of the financial year from 1.4.1999 to
31.3.2000.
5. The amounts included in the accounts 'reserves and retained
earnings' of the last year's period, have been recorded prior
to posting the arising income tax, which for the period 1.1.98-
30.6.98 is estimated at GRD 9.8 bln.
6. In the accounts 'receivables' and 'short term liabilities' the
amount of GRD 11.6 bln is included and reflects income tax
advance for the financial year 1999-2000. The respective amount
of the last year's period was GRD 5.3 bln.
7. Depreciation expenses of the last year's period have been
adjusted to be comparable to the current period.
8. These consolidated financial statements include the following
subsidiaries: PANAVOX SA (line by line consolidation) and
UNIFON SA, RADIO KORASIDES TELECOM SA (equity method)
Marousi, 24 August 1999
MANAGING DIRECTOR FINANCIAL DIRECTOR ACCOUNTING MANAGER
GEORGE KORONIAS GRIGORIS ANASTASIADIS DIMITRIS TSOPELAS