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Vodafone-Panafon (VPHD)

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Tuesday 25 November, 2003

Vodafone-Panafon

Interim Results

Vodafone-Panafon Hellenic Tel Co SA
25 November 2003



                                25 November 2003

                                VODAFONE-PANAFON

                                Interim results
                    For the six months ended 30 September 2003

                                Revenue: +17.5%
                                 EBITDA: +13.3%
                               Net Income: +25.7%
                                 ARPU at €30.98
                              AMOU at 108 minutes
                                        
Vodafone-Panafon today announces interim results for the six month period ended
30 September 2003 prepared according to International Financial Reporting
Standards (IFRS)(1).

Revenues for the 6m period increased by 17.5% to €726.1 million compared to €
618.2 million in the previous comparative period. The rise was primarily due to
increases in the customer base and usage, which offset the tariff reductions in
both outgoing and incoming calls.

Gross blended ARPU(2) for the period under review was €30.98, broadly stable
versus the previous comparative period, despite the significant tariff
reductions and the further penetration in the prepaid segment. Postpay customers
ARPU increased to €63.53 for the six months under review.

Blended AMOU(3) for the period reached 108 minutes compared to 97 minutes in the
previous comparative period, representing an 11.3% increase. Moreover, postpay
usage increased 22.3% compared to the previous comparative period reaching the
record level of 274 minutes.

During the last three consecutive quarters, ARPU and AMOU have shown a constant
growth reflecting the increased usage of the customer base after the last tariff
reductions and the launch of innovative products and services such as Vodafone
live!.

                              ARPU & USAGE TRENDS

             1H 03-04   1H 02-03      %    Jan-Mar 03   Apr-Jun 03   Jul-Sep 03
                                  change

Blended         30.98      31.55   -1.8%        28.49        29.84        31.66
ARPU

Blended           108         97  +11.3%           94          105          112
AMOU

ARPU            63.53      62.74   +1.3%        57.68        60.75        65.93
Postpay

AMOU              274        224  +22.3%          252          264          283
Postpay

ARPU            17.70      19.50   -9.2%        16.79        17.33        17.76
Prepaid

AMOU               45         48   -6.3%           40           44           46
Prepaid



Service revenues increased by 15.9% representing 90.3% of total revenue.
Outgoing airtime revenue increased by 24.0% despite the tariff reductions,
mainly driven by high usage patterns. Roaming revenues increased by 21.3% due to
the increased number of Vodafone roamers, the effect of our full roaming
capabilities for prepaid customers and the national roaming of Q-Telecom
customers.

Data revenues (including SMS and WAP) increased by 22.2% during the period
representing 12.9% of service revenues benefiting from the new Vodafone live!
and Business services propositions. Going forward these propositions are
expected to further boost data revenues.

Data ARPU stood at €3.81, representing 12.3% of total ARPU.

Vodafone live!
Of particular interest is the continued commercial success of Vodafone live!. In
the 9 months since its launch in the Greek market, Vodafone live! has attracted
107,000 users, penetrating Vodafone-Panafon's total customer base by 3%.
Moreover, Vodafone live! customers contribute with higher data ARPU than the
average base.

Monthly Access Revenues reached €86.3 million from €61.2 million in the previous
comparative period representing a 41.1% increase, highlighting the success of
our bundle minute tariff plans.

Cost of sales increased to €366.4 million while gross profit margin reduced to
49.5% from 53.3%. Margins are influenced by high handset sales due to increased
additions of postpay customers.

EBITDA increased by 13.3% to €277.4 million from €245.0 million in the previous
comparative period, while EBITDA margin was 38.2% or 1.4 percentage points lower
than the previous comparative six-month period. Excluding the dilution effect
from merchandise sales, EBITDA margin for the period under review remained
fairly steady versus the previous comparative period at 42%.

Comparing EBITDA and Gross profit margins on a consecutive half year basis, they
have been slowly increasing showing upward trends for the future.

Selling, General & Administrative expenses excluding depreciation and
amortisation totaled €146.8 representing 20.2% of total revenues compared to
22.1% during last year. This reflects the positive results of synergies and
increased productivity.

Depreciation and amortisation increased to €94.4 million, 21.3% higher than the
previous comparative period, reflecting accumulated capital expenditure.

Earnings from associate companies reached €4.8 million reversing last year's
losses of €2.9 million. This is mainly due to the significant improvement in the
performance of Vodafone Albania.

Income before taxes reached €182.7 million, 22.4% higher than the first half of
last year, reflecting the exceptional write down of investments last year, the
improvement in the earnings from associates and the significant reduction in net
interest expenses.

Net income increased by 25.7% to €111.8 million compared to €88.9 million in the
first half of last year.

Subscriber acquisition cost and retention costs represented 9.3% of total
revenues compared to 8.0% for the year ended 31 March 2003 reflecting the strong
postpay customers net additions, and the investment in retaining existing high
value customers.

Net Cash available(4) was positive at €128.4 million, financing the company's
increased investment needs in light of 3G technology. Debt to equity ratio(5) at
the end of September 2003 was 0.18x.

Capital expenditures in network and other fixed assets for the period under
review amounted to €87.0 million, 11% of which was dedicated to 3G expenditure.

Total registered customer base as at 30 September 2003 was 3,782,737 customers,
an increase of 21.5% since 30 September 2002, while total prepaid customers
reached 2,685,330 representing 71% of the total customer base. Total net
additions for the six months reached 399,972 representing a 171.2% increase
compared to the previous comparative period. Postpay additions remained strong
for the period raising the total postpay base net additions to 118,656 or 120.8%
higher than the previous first half of last year.

Blended churn for the first half reduced to 11.7% principally due to a reduction
in postpay churn. Prepaid churn remained steady.

Regarding customer activity, Vodafone-Panafon's active(6) customer base at the
end of September 2003 was 78%. Postpay activity was maintained at the high
levels of 95%, while prepaid activity was 71%.

For the period under review Vodafone (Albania)(7), for the six months ended
September 2003 added 82,416 customers increasing its total customer base at the
end of September 2003 to 473,473 with the majority of it being prepaid. Vodafone
(Albania) at the end of September has captured 44.6% market share.

ARPU for the period reached €18.19 while average minutes of use (AMOU) reached
68.7 minutes.

Revenue for the six months ended 30 September 2003 was €47.86 million, EBITDA
reached €19.03 million, and Earnings before taxes reached €8.18 million.


Vodafone-Panafon's CEO, Mr George Koronias, commenting on the results said the
following:

'Vodafone-Panafon has again delivered increased growth in profitability in all
areas, in an intensely competitive market driven by innovative services such as
Vodafone live! that come in conjunction with continuously increasing usage
patterns in the customer base, we are certain that we will maintain and further
reinforce our leading position, to the benefit of our customers, shareholders,
employees and the society as a whole.'


                          Summary of Financial Results

       (Unaudited consolidated financial results for the six months ended
                            30 September 2003 - IFRS)

                                          6 months to   6 months to          %
                                             30-09-03      30-09-02     change
                                            Unaudited     Unaudited
                                                  € m           € m

Total Revenues                                  726.1         618.2       17.5%
Service Revenues                                656.0         565.8       15.9%
EBITDA                                          277.4         244.9       13.3%
EBITDA margin                                    38.2%         39.6%     -1.4pp
EBITDA margin excluding merchandise              42.0%         42.8%     -0.8pp
SG&A excluding depreciation                     146.8         136.4        7.6%
Depreciation & Amortization                      94.4          77.9       21.3%
Earnings (losses) from associate                  4.8          -2.9          -
companies

Net interest expense                              3.7           7.8      -51.7%
Operating Profit (EBIT)                         183.0         167.1        9.5%
Income before income taxes                      182.7         149.2       22.4%
Net income                                      111.8          88.9       25.7%
Earnings per share (eurocents)                  20.57         16.36       25.7%
Weighted average number of shares         543,314,000   543,314,000          -
Customers at end of period (000's)              3,783         3,114       21.5%
Average Customers (000's)                       3,599         3,040       18.4%


Further announcements:

As at 1 October 2003, Vodafone-Panafon has changed its disconnection policy for
prepaid customers from (12 + 6) to (12 + 1) months, in line with most of the
European operators. Effectively, 240,000 inactive prepaid customers will be
disconnected. This will have no effect on the company financials, as these users
have all been inactive for a long period.

Regarding quarterly customer number announcements, going forward,
Vodafone-Panafon will announce customer numbers semiannually at the time of its
interim and year-end results.

Regarding forward statements contained in this press release, they are all made
on the basis of certain assumptions which Vodafone-Panafon believes to be
reasonable in light of Vodafone-Panafon's operating experience in recent years,
and should be treated with caution. By their nature, forward-looking statements
are inherently predictive, speculative and involve risk and uncertainty because
they relate to events and depend on circumstances that will occur in the future.
There are a number of factors that could cause actual results and developments
to differ materially from those expressed or implied by these forward-looking
statements. No assurance can be given that the forward-looking statements in
this presentation will be realised. Vodafone-Panafon does not intend to update
these forward-looking statements. '

                                    -Ends-

For Further Information, Contact:

Maria Kaini Investor Relations Officer Tel: +30 210 6160692
[email protected], website www.Vodafone.gr

Notes:

(1) Unaudited consolidated financial statements according to IFRS, previously
    noted as IAS. Vodafone - Panafon fiscal year ends 31st March

(2) ARPU= monthly average revenue per user

(3) AMOU= average minutes of use

(4) Net cash available = operating cash flow minus cash for capex payments

(5) Debt / equity ratio = Net debt position / shareholders equity

(6) Inactive customers are those who did not generate incoming & outgoing
    revenue in the last 3 months.

(7) Vodafone - Panafon holds 49% of the share capital of Vodafone Albania
    (indirectly through its 100% subsidiary Vodafone - Panafon International
    Holdings), while Vodafone International Holdings BV has 51%. EUR/LEK
    exchange rate = 142.792 (average for the 6 months)




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