Panafon Hellenic Telecom Co S.A.
6 July 2000
PANAFON ANNOUNCES STRONG GROWTH IN
CUSTOMER BASE FOR Q2 2000
PANAFON Hellenic Telecommunications Company S.A.
('Panafon'), the leading provider of mobile
telecommunications in Greece, announces that its total
customer base reached 1,901,945, a 36.2% increase
compared to the end of June 1999. Net additions totalled
129,071 in the second quarter of 2000.
Growth in the customer base during the second quarter of
2000 has continued to be driven predominantly by pre-pay,
in line with the Company's strategy to profitably grow
the market and direct low usage contract customers
towards the pre-pay product. Pre-pay customers totalled
1,225,822 and represented 64.4% of Panafon's total
subscriber base.
These second quarter subscriber numbers reflect the
Company's policy to keep handset subsidies for new
contract customers at low levels, leading to an overall
gradual reduction of subsidies.
During this quarter, Panafon consolidated its first mover
advantage in the Internet by announcing the full
commercial launch of its Internet Service Provider,
Panafonet that is now available in eight different
connection packs* at very competitive prices, throughout
Panafon's extensive distribution network. These
initiatives are in line with Panafon's ONE STOP SHOP
strategy, focusing on offering the most comprehensive
range of datacomms and internet related products and
services to all its corporate customers.
Towards this aim, Panafon also launched VPN services to
all its corporate customers. VPN's provide corporate
customers with full mobile and mobile to PABX (private
automatic branch exchange) integrated services and
billing**. Additionally, VPN services integrate
corporate cellular phones of an enterprise, with its
fixed internal phones, allowing smooth and unhindered
communication between company executives with obvious
benefits for the company itself.
To complement its long term internet strategy, Panafon
announced during this quarter, its plans to launch an
Internet Service Provider (ISP) and internet portal in
the Republic of Cyprus: Panafon Cyprus. The ISP will be
positioned to capture Cyprus's growing internet market
while the portal will offer content of high a caliber.
Furthermore Panafon, in line with it's strategy to
position the Company to exploit the full range of
opportunities arising from the convergence of the
Internet and the mobile phone, was the first Company to
offer WAP services in Greece. The Company's WAP service,
PANAFON GO WAP, offers to all its customers (both
contract and prepay) immediate access to information and
services available at Panafon's www.pan.gr Internet
portal, directly through their mobile handsets without
the intervention of a computer or any other electronic
device.
During the same period the Company has also introduced
e-business to its internet offering with the launch of
Panafon Emporiki's e-shop at: www.panafon-hello.gr.
E-shop visitors, using their computers, can now access the
e-shop any time of the day and view the full range of
Panafon services and directly purchase a wide range of
telecommunications equipment.
Moreover, during this second quarter of 2000, in line
with its commercial strategy to profitably grow the
market and stimulate usage, Panafon has launched five new
tariffs plans: Panafon 1 & Panafon 2 are addressed to the
contract mass market and offer Panafon customers the
freedom to choose between the two most competitive tariff
plans in the Greek cellular market. P-180, P-300, P-500
are bundled tariffs addressed to high usage customers,
offering free minutes and competitive monthly access,
with very low churn.
Additionally, 'Panafon a la Carte', the leader in
prepaid services in the Greek cellular market (over 44%
market share), now offers the most comprehensive choice
in prepaid telephony with new competitive tariffs of GRD
2,3/sec***, bundled with the most extensive range of
services, including exclusive integrated roaming services
in 91 countries around the world.
Panafon's main goal is to sustain profitable growth. The
effectiveness of the Company's commercial policies is
reflected in its robust financial performance. For the
twelve month period to March 2000, revenues grew by 22%
to reach GRD 270 bn, while EBITDA grew by 31%, reflecting
the significant decrease of subscriber acquisition cost,
to reach GRD 116 bn, posting a higher than last year
EBITDA margin, of 43% which is among the highest between
European mobile operators.
Panafon aims to stimulate the growth of its customer base
and remains focused on profitable growth in a highly
competitive environment.
* The 8 connection packs depend on the connection
period (for 3, 6 and 12 months) and the connection
type (ISDN or PSTN line).
** VPN services offer full call-cost control as call
calculation will be adjusted according to its type
(different charges will be set for personal,
business related, international calls, e.t.c.).
*** New prepay tariffs include per second biiling, a
minimum charge for the first 20 seconds and
no peak / off-peak charges.
Contact:
George Stefanopoulos, Panafon Group Investor Relations
Executive, Tel: +301 6160061,
Myrella Ioannidou, Panafon Senior Investor Relations
Officer, [email protected], website www.panafon.gr
Eleana Giabana, Panafon Media & Public Relations Manager,
Tel: +301 6160011
Lulu Bridges
Tavistock Communications
Tel: +(44) 20 7600 2288
Nicolas Bornozis
Capital Link
Tel: + 1 (212) 661 7566
Notes to Editors:
1. Panafon's shares are quoted on the Athens Stock
Exchange and its GDSs are quoted on the London Stock
Exchange. The shares began trading on Monday 7 December
1998.
2. Panafon has 512, 500,000 shares in issue.
3. Panafon is a shareholder in:
Panafon Emporiki (previously Panavox)100.00 per cent
Panafon Services 100.00 per cent
Radio Korassidis Telecom 26.11 per cent
Unifon 19.01 per cent
Mobitel 25.01 per cent
Ideal Telecom 51.00 per cent (following
completion of all
legal procedures)
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 shareholding structure is as follows:
Vodafone AirTouch Plc 55 per cent
France Telecom 3 per cent
Intracom S.A. 10 per cent
Free float 32 per cent
PANAFON listings:
Shares: Athens SE, Reuters PANr.AT. Bloomberg PANF GA.
Nominal value GRD 100. ISIN GRS 307 333 005. SEDOL 5560349.
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
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