The Cyprus Telecommunications Authority (Cyta) is preparing to enter the energy market in 2027, planning to make its first investments in the renewable energy sector.
This is derived from what is stated in the introductory report and the explanatory note accompanying the Authority's budget for the new year, which has already been submitted to Parliament and will soon be put under the microscope of the House Finance Committee.
Based on the data, Cyta's budget for 2027 presents a pre-tax surplus of €40.09 million and an after-tax surplus of €34.92 million, compared to €34.9 million and €30.9 million, respectively, in 2026.
As explained, the increase in the surplus is due to the increase in total revenue by €27.91 million, with a parallel smaller increase in expenses of €22.73 million.
Revenue and expenses
Furthermore, based on the introductory report, Cyta's revenues for 2027 amount to €478.48 million compared to €450.57 million in 2026, i.e. an increase of 6.2% or, in absolute terms, an increase of €27.91 million.
In the years 2028 and 2029, revenues are estimated to continue to increase and reach €498 million and €502.35 million, respectively.
At the same time, the Authority's expenses (regular expenses) for 2027 amount to €478.48 million compared to €450.57 million in 2026, representing an increase of 6.2% or, in absolute terms, an increase of €27.91 million.
In the years 2028 and 2029, expenditures are estimated to increase further and reach €455.69 million and €457.43 million, respectively.
Two new investments
With regard to investments in particular, based on the introductory report, these are presented as increased by €30 million in 2027 compared to 2026, and essentially concern the financing of CYTA subsidiaries for the implementation of specific projects.
One project concerns the creation of a new Data Centre with a two-year implementation horizon. This project is expected to serve the Authority's clients, the local business market, the state, other public organisations, as well as foreign clients.
The second project, which will be implemented in 2027, concerns investments in renewable energy sources with the aim of the Authority's commercial activity in the energy sector, including the energy needs of the new Data Center.
The Pension Fund deficit is increasing
However, and although Cyta has been showing significant surpluses in recent years, the actuarial funding deficit of the Organization's employees' Pension Fund is increasing year by year.
Specifically, and according to the introductory report, based on a more recent actuarial study of the Authority's Employees' Pension Plan, the actuarial funding deficit on 31 December 31, 2025 amounted to €211.56 million, compared to €140.07 million on December 31 , 2024 and €85.59 million on 31 December, 2023.
Therefore, the Board of Directors of Cyta decided to pay an annual contribution of 4.6% compared to 3.9% previously and to pay annual amounts to repay the deficit over eight years, specifically €30 million in 2026, €23 million in 2027, €25 million in 2028, €33.391 million annually in the years 2029-2032 and €29.54 million in 2033.
Personnel costs at €137 million
Regarding staff salaries and other benefits, it is worth mentioning that these are presented as increased by €6.96 million in 2027 compared to 2026 (€137.26 in 2027 compared to €130.3 million in 2026), mainly due to the transfer of a number of employees to higher scales (€1.15 million), the provision for an increased indexation allowance for monthly staff (€1.2 million), the inclusion of salary increases and consequent increases in contributions.
Additionally, there is an increase in overtime by €1.1 million (total overtime €7.8 million), in the provision for remuneration and incentives by €0.6 million (total €3.4 million), in group insurance by €0.22 million and in the contribution to the Pension Fund by €1.23 million.
(Source: InBusinessNews)
