Deutsche Telekom set to exit Romanian fixed line market

News

Orange is said to be the buyer of DT’s 54% stake in Telekom Romania Communications (TRC), formerly Romtelecom.

The Romanian Government holds the remaining 46% stake in TRC through the Communications Ministry and is reported to have given its permission for the sale.

The news is no surprise: DT has been looking to exit some of its smaller European markets, including Romania, for which it put in place a transformation plan two years ago.

Falling revenues

However, Telekom Romania recorded revenues of €933 million in 2018, down 4% on 2017, and operational profit – earnings before interest, tax, depreciation and amortisation – at  €136 million was down by 15% year on year.

Separately, DT is expected to sell Telekom Mobile to Bulgarian businessman Spas Roussev, who is thought to have the backing of Russian investment funds.

TRC owns 70% of Telekom Mobile; OTE owns the rest. DT has a 40% shareholding in OTE.

Shedding staff

This July DT announced 700 staff in the country would lose their jobs: 438 position within TRC and 254 within Telekom Romania Mobile Communications, the former Cosmote.

The two companies employed more than 5,800 staff before the cuts.

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