AAE-1 and International Business Drive OTEGLOBE 15% EBITDA Increase in 2017

OTEGLOBE announced on Monday high performance according to its 2017 financial results. In 2017 OTEGLOBE recorded a significant 15% increase in EBIDTA, and EBITDA margin increased to 5,5% from 4,7% in 2016.  International customers contributed 80% of its 2017 revenues. OTEGLOBE is the landing party in Greece for the Asia-Africa-Europe-1 (ΑΑΕ-1) submarine cable system which was set in full commercial operation in December 2017.  OTEGLOBE reached an agreement with HGC in May 2017, joining forces to provide Eurasia connectivity solutions via AAE-1 and capitalizing on its investment in AAE-1 cable. The economic benefits of AAE-1 operation was recorded in 2017. OTEGLOBE is expected to increase revenue significantly from AAE-1 in the future. 

The company’s revenues remained high in 2017, reaching €333,5 mn and recording a slight decrease of 2% from 2016. The impact of the price decrease in international wholesale on OTEGLOBE’s revenues, was counterbalanced by the revenue increase in international capacity services, which was a result of the company’s previous years’ investments and the maintenance of high revenues in international voice services.  

Since 2007, OTEGLOBE has increased its revenue by 102% (from €165,1 mn to €333,5 mn) where 80% of 2017 revenues comes from international customers.

In 2017 OTEGLOBE recorded a significant 15% increase in EBIDTA, reaching €18,5 mn from €16,1 mn in 2016, while the  EBITDA margin increased to 5,5% from 4,7% in 2016.

By capitalizing on Greece’s geographic advantage, OTEGLOBE has already implemented its expanding strategy in the new markets of M. East and N. Africa, through investments and partnerships with major carriers.

In this context, the new next generation international submarine cable Asia-Africa-Europe-1 (ΑΑΕ-1) was set in full commercial operation in December 2017. AAE-1 is a consortium of 19 of the world’s most prominent telecom service providers, among which OTEGLOBE and one of the largest and unique high capacity cable system of the world. The new cable spanning approximately 25,000 km is one of the first unique cable systems connecting Hong Kong, Singapore, Middle East, Africa and Europe, providing an alternative low latency route between Far East and Europe. Major part of this traffic already passes through Greece and the Chania cable station, with the economic benefits of its operation to be recorded in 2017, while they are expected to increase significantly in the future.

At the same time, in 2017 OTEGLOBE redesigned and upgraded its European backbone network, with the addition of thousands kilometers of fiber in Europe. The new network includes 21.000 km privately owned fiber and runs through 15 countries, connecting to major data centers such as London, Frankfurt, Paris, Milan, Marseille, as well as the Balkans. The company actually transformed and redesigned its backbone network (two fully protected, terrestrial fiber networks TBN & GWEN, stretching from Greece to W. Europe through the Balkans and Italy accordingly) to a unified, optical multi-terabit network of mesh architecture stretching from Greece to W. Europe.

By combining a resilient subsea route with a diverse terrestrial network, OTEGLOBE offers an alternative path for connecting Europe to Asia and the world through Greece and emerges as a reliable hub in the Mediterranean basin.

OTEGLOBE is the ONLY carrier that reaches W. Europe through Greece over a fully mesh optical backbone network, consisting of more than four diverse terrestrial routes, that cross Italy and the Balkan region. It operates the most robust, resilient, protected and extensive network in SE Europe, incorporating the latest technical innovations, such as 100G technology, while it has also deployed its own, private IP network with presence in the main telecom hubs in Europe. 

OTEGLOBE adapts constantly to the dynamically changing global environment by investing in numerous submarine cable consortia (the latest of which is AAE1), continuously upgrading its existing, diverse and resilient network infrastructure and forming strong partnerships with major global carriers.  At the same time, OTEGLOBE is an established IPX carrier with strong presence in the global voice wholesale market, offering high quality voice and roaming services over redundant points of interconnection, as well as a broad range of mobile and value added services.

         OTEGLOBE international network map (click here to enlarge)