Forthnet S.A.
Registration Number S.A. 34461/06/Β/95/94 G.Ε.Μ.I. 77127927000
Scientific Technological Park of Crete Vassilika Vouton, Iraklion Crete 71003 http://www.forthnetgroup.gr
Contents to the Interim Financial ReportSTATEMENTS OF THE MEMBERS OF THE BOARD OF DIRECTORS 3
BOARD OF DIRECTORS' REPORT ON ΤΗΕ INTERIM CONDENSED FINANCIAL STATEMENTS 4
REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION 17
INTERIM CONDENSED STATEMENT OF COMPREHENSIVE INCOME 20
INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION 21
INTERIM CONDENSED STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY 22
INTERIM CONDENSED CASH FLOW STATEMENT 23
NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS 24
Corporate Information 24
Basis of Presentation of Financial Statements 25
Basis Of Consolidation 26
Significant Accounting Policies 26
Significant Accounting Judgements and estimates 29
Going Concern 29
Group Segment Information 31
Revenues 31
Other expenses 32
Income taxes 32
Property, plant and equipment 33
Intangible Assets 33
Goodwill 33
Investment in Subsidiaries 34
Programme and film rights 35
Trade Accounts Receivable 35
Share Capital 36
Long-term and Short-term borrowings 36
Programme and film rights obligations 38
Related Parties 38
Commitment and Contingencies 41
Financial Instruments and Financial Risk Management 42
Subsequent Events 45
The following statements, which are effected in accordance with article 5 par. 2 of the L. 3556/2007, as applicable, are given by the following Members of the Board of Directors of the Company:
Deepak Srinivas Padmanabhan of Velaidam, resident of Dubai, UAE, President of the Board of Directors
Panagiotis Papadopoulos of George, resident of Pallini Attica, Vice-President of the Board of Directors and CEO and
Mohsin Majid of Khawaja Abdul, resident of Dubai, UAE, Member of the Board of Directors
The undersigned, in our above-mentioned capacity, and in particular as specifically appointed by the Board of Directors of the societe anonyme company under the name "Hellenic Company of Telecommunications and Telematic Applications Societe Anonyme" and trade title "Forthnet S.A." (hereinafter referred to as "Company" or as "Forthnet"), we state and we assert that to the best of our knowledge:
the interim condensed financial statements of the Company and the Group of the societe anonyme company under the name "Hellenic Company of Telecommunications and Telematic Applications Societe Anonyme" and trade title "Forthnet S.A." for the period from January 1, 2017 to June 30, 2017, which were compiled according to the applicable International Financial Reporting Standards, provide a true and fair view of the assets and the liabilities, the equity and the results of the period of the Company, as well as the companies' which are included in the consolidation, according to that stated in paragraphs 3 to 5 of article 5 of the L.3556/2007 and the relevant executive Decisions of the Board of Directors of the Capital Market Commission.
the six-month Report of the Board of Directors of the Company provide a true and fair view the evolution, the achievements and the financial position of the Company, as well as the companies' which are included in the consolidation, including the description of the main risks and uncertainties they face and relevant information that is required according to paragraph 6 of article 5 of the L. 3556/2007, and the relevant executive Decisions of the Board of Directors of the Capital Market Commission.
Iraklion, August 7, 2017
BOARD OF DIRECTORS' REPORT ON ΤΗΕ INTERIM CONDENSED FINANCIAL STATEMENTSDeepak Srinivas Padmanabhan
Panagiotis Papadopoulos
Mohsin Majid
President
Vice-President
Member
of the Board of Directors
of the Board of Directors and
Of the Board of Directors
Chief Executive Officer
The report of the Board of Directors of the Hellenic Company for Telecommunications and Telematic Applications S.A. (hereafter refer to as "Forthnet" or the "Company") has been prepared in accordance with the article 5, law 3556/2007 and refers to the Interim Condensed Financial Statements (Consolidated and ) for the period January 1, 2017 to June 30, 2017.
The Board of Directors report includes an analysis of the Company's financial performance for the period ended June 30, 2017, the significant events which took place in the first half of 2017, a presentation of the principal risks and uncertainties for the first half of 2017, and the Group's and the Company's significant transactions with related parties.
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Performance and Key Financial Highlights
Τotal (normalized) revenues stood at 149,5 million euro and EBITDA at 16.1 million euro.
3Play/bundled subscribers at 296k.
Broadband subscribers at 572k.
Pay TV subscribers at 423k.
The subscriber base declined as a result of the cautious commercial policy, the imposition of a 10% tax on Pay-TV and 5% tax on fixed telephony and because of the conservative commercial policy followed by the company as well.
The underperformance of the Super League has contributed decisively to the decline in financial figures - The company has exhausted all negotiation without result and has filed a lawsuit for price reduction of the collective management agreement.
Total Business revenue increased by 7,0% while Advertising revenue increased by 18.1%.
6M 2017 | 6M 2016 | Variance | |
Total Subscriptions | 995,585 | 1,073,067 | -7,2% |
Unique Households | 699,435 | 744,606 | -6,1% |
Households with 3play/Bundled Services | 296,150 | 328,461 | -9,8% |
Broadband subscribers | 572,306 | 612,815 | -6,6% |
Pay TV Customers in Greece | 423,279 | 460,252 | -8,0% |
(.000€) | 6M 2017 | 6M 2016 | Variance |
Revenue (including other income) | 149,353 | 165,294 | -9.6% |
Revenue (normalized)* | 149,535 | 165,510 | -9.7% |
EBITDA | 16,099 | 26,815 | -40.0% |
*Normalization relates to a reclassification in business revenues which presented in expenses, based on accounting policy.
According to CEO, Mr. Panos Papadopoulos:
«The continuing recession of the Greek Economy coupled with the 10% tax on pay-TV and 5% tax on fixed telephony had a negative impact on the purchasing power of households in the first half of 2017. At the same time, the continuing low performance of the Super League has a negative effect not only In our subscription base, but also in our basic financial figures. In this unfavorable macroeconomic environment, we continue to implement a conservative commercial policy and take actions to further improve our costing model.»
Forthnet SA published this content on 08 August 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 08 August 2017 15:54:06 UTC.
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