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Greek Banking, Telecom and Technology: Upcoming Prospects for the Key Players

By Ioannis Michaletos

In Greece as in the wider world, the banking, telecommunication and tech sectors make up the main driving force in economic development. In our post- industrial era, these services across their entire spectrum dictate to a large degree the stock market, social norms and key trends, and assume pivotal importance when assessing the economic outlook of a particular state.

In contrast with its primary industrial sector, these service sectors have performed more and more strongly since the 1990’s, and continue to deliver large profits to their stakeholders and associates.This article introduces the reader to the assets, presence and prospects of the main players in Greece’s banking, telecommunication and tech sectors. Readers should note that only corporations fully owned by Greeks will be presented, and not the numerous powerful subsidiaries of multinationals present on the Greek market.

National Bank of Greece

First considerations must go to the National Bank of Greece. It was established in 1841 and was the first bank in the country, having been created in 1830. It is the bulwark of the Greek banking system and the largest group in Greece, with a market capitalization of almost 13 billion Euros. Its branches are spread throughout Greece as well as in the UK, Germany, South Africa, Australia, Albania, Serbia, Romania and other countries. Until recently it had an American subsidiary, the Atlantic Bank, which was sold off.

The main strategic aims of the bank are to expand in the SE European area and it is thus now eying Romanian banks up for sale. Moreover the bank has a diversified range of interests, including the national insurance company, Hercules Cement and Astir Hotels Group, as well as colossal real estate assets all over the country. It is assumed that currently the NBR has a bit over 1 billion euros in readily dispensable assets; this will soon swell if its plans to sell off parts of the companies it controls succeed. For 2006, it is likely to expect financial deals in Romania and the expansion of its branches in the other Balkan states.

Eurobank

Eurobank is one of the fastest growing banking institutions in SE Europe. It was established in 1990 by Spyros Latsis and Deutsche Bank. The latter withdrew in 2003, and currently the stocks of this particular company are some of the most sought-after on the Athens Stock Exchange.

Eurobank employs over 13,500 people and has branches in the Balkans, as well as private banking outlets in areas such as the Cayman Islands, Geneva, London, Monaco and other. Eurobank also issues Open 24 and Eurobank cards, which have a strong representation on the ever growing credit card market in Greece.

Among its targets for 2006, Eurobank seeks to expand into the Polish market, where it plans to open 100 branches in the next three years.

Alpha Bank

Alpha Bank is one of the oldest banks in Greece, having been created in 1885, and it is the country’s second largest after the National Bank. It has a market capitalization of well over 8.5 billion euros, and an international branch network, especially in Romania where it owns dozens of outlets. Moreover, it is a lending institution of high caliber in areas such as the shipping sector and has an excellent reputation for its costumer service.

Alpha Bank has been a trendsetter on numerous occasions since the 1990’s in Greek banking. In the future, further expansion in the Balkans is likely. It is also being speculated that the bank’s actions could trigger the now-looming “price war� over real estate loans in Greece.

OTE- the National Telecommunications Company

First established in 1949, OTE is one of the forerunners of modern Greece’s economic development. It has a market capitalization of around 9.5 billion euros, and has interests in Serbia, Romania, Armenia, Yemen, Jordan and other countries. Further, OTE has numerous affiliated companies and large real estate assets.

Some 7 million costumers are served by the company, which is also the driving force behind the expansion of ADSL internet in Greece. The state owns 38.6 percent of the stocks, and any decision for a total sell-off (as is rumored) will have implications for the whole of the Greek political system.

Amongst OTE’s future plans is consolidation with Cosmote, a partial withdrawal from the Romanian and Armenia market, and the formation of an alliance with a strategic partner that will acquire a portion of the organization. For now, the most probable ones are Deutsche Telecom and Telefonica.
Cosmote

Cosmote is one of the fastest growing mobile operators in Europe. It was established in 1998 by the Greek national telecom operator, OTE, and the Norwegian Telenor. It boasts in excess of 4 million customers and has achieved international recognition by affiliating with the I-mode 1 mobile browser under exclusive agreement with NTT.

Furthermore, Cosmote is activate in the Balkans through subsidiaries: Macedonia’s Cosmofon, AMC-Albania and Globul in Bulgaria all have strong developmental prospects. The company employs 2,200 people and had an estimated turnover for 2005 of around 1.5 billion Euros. Its current market capitalization is 6.7 billion euros. The outlook for 2006 suggests strong indications for consolidation of the corporation with its main stakeholder, thus creating the largest telecom operator in an area from Rome to Mumbai.

Plaisio Computers

Plaisio Computers is a medium-sized company in comparison to those mentioned above. But it is clearly a modern business success story. Established in 1969 as a small stationery shop in the center of Athens, Plaisio is currently a leading computer firm with a stock market value of 160 million euros.

The company deals with computer systems support and functions as a retailer. It currently has 900 employees, is renowned in Greece for its high-quality costumer service. In 2005, Plaisio’s estimated revenues exceeded 250 million Euros. For 2006, look for the company to branch out in the Bulgarian market.

Antenna Group

The Antenna Group is the largest TV and entertainment conglomerate in Greece. It was first established in 1987 by the shipping tycoon Minoas Kyriakou, and from then on expanded into areas such as television, publishing, music, internet, credit cards and education. It owns a subsidiary in Bulgaria, Nova Televisia and Radio Express, and it broadcasts worldwide via satellite. Antenna is thus very popular in the Greek diaspora.

Within Greece itself, the station tends to fluctuate between first or second place in terms of viewer ratings. Over 2,000 people work for the group, which also has an innovative educational center that serves as a pool for nursing future talent.

For 2006, no definitive predictions can be made, though it should be said that the Antenna Group is well known for making careful business moves.

OPAP

OPAP first started in 1958 as the state organization for the football lottery-PROPO- and currently is a giant in the Greek gambling sector. With a market capitalization of around 11 billion euros, and the ever increasing Greek lust for the lottery and other games of chance, it reaps huge profits each year.

Last year, the Greek government sold 16.6 percent of its share through the stock market. For 2006, the corporation is offering a 250 million euro contract for gaming software and machinery; potential interested parties such as Intralot, Scientific Games, Lottomatica and others are preparing to fight over it. In the near future, further expansion in the Balkan market, as well as further partial company sell-off by the government are likely.

Ioannis Michaletos is a researcher on HRM, sustainable development and member of the governing board of the Research Institute for European and American Studies (RIEAS) in Athens.