The Cyprus Telecommunications Authority (CyTA) said Monday it is increasing its profits as well as its market share while giving back to the state over €1 billion in the form of dividends and taxes over the past 20 years.
CyTA chairman Michalis Ioannidis was speaking at the House finance committee, reviewing the organisation’s budget for fiscal year 2022.
The 2022 balance sheet visualises a €39.4 million after-tax surplus, with total spending at €434.2 million.
Ioannidis told lawmakers that CyTA’s profits for 2021 are estimated at €75 million – the highest in the last 13 years.
The improving profitability owed to two factors: first, a tightening up of expenses and, second, a seven per cent bump in revenues compared to the previous year.
The revenue increase in turn was due to the organisation expanding its market share in the broadband connection and television markets.
According to data provided by the Office of Electronic Communications & Postal Regulations, in the broadband market CyTA’s share came to 56.9 per cent in the second quarter of 2021, up from 55 per cent at the beginning of that year.
In television, the market share was 47.2 per cent in the second quarter of 2021, compared to 43.5 per cent at the start of the year.
Fixed telephony business was down, in line with global trends.
Ioannidis said that in 2020 CyTA’s investments in infrastructure came to €100 million; similar levels of investment were made in 2021.
The semi-governmental organisation is meanwhile promoting major projects – a 5G network, fiber optics, submarine telecom cables connecting Cyprus to other countries, and a state-of-the art ‘Green’ data centre.
On the 5G network, Ioannidis asserted that it is the “fastest” in Europe, adding that by March 2022 coverage will reach the entire population.
He also stressed that within the past 20 years, CyTA has paid the state €1.167 billion in dividends and taxation.
The reference was promptly picked up on by main opposition Akel, who later commented that this vast amount would have been lost had the government succeeded in its plan to privatise CyTA.