Cyta revenues climb to €442 million with solid 2025 profits

State-owned telecommunications provider Cyta on Monday presented its 2026 budget focused on digital infrastructure investment to the House finance and budget committee, outlining stable profitability, network resilience and a continued expansion of next-generation technologies.

The budget places strong emphasis on major investments in digital infrastructure, profitability and resilience, positioning Cyta as a central pillar of Cyprus’ digital economy.

“This is a budget of responsibility and continuity,” said “a budget built on tangible financial results and a specific investment plan that delivers direct benefits to citizens, businesses and the Cypriot economy,” Cyta chair Maria Tsiakka told the committee.

She stressed that the primary objective was ensuring uninterrupted operation and continuous upgrading of critical digital infrastructure across the Republic of Cyprus.

She described 2025 as a year of intense activity for the organisation, during which total revenues rose from €415 million in 2024 to €442 million.

She added that pre-tax profit is expected to reach €85 million for 2025.

She also recalled that over the past 25 years Cyta has contributed more than €1.29 billion to the public purse, including €925 million in dividends and €373 million in taxation.

Significant emphasis was placed on investments in next-generation networks, with full nationwide 5G coverage and the rollout of a pan-Cypriot fibre network placing Cyprus first in the European Union under the Digital Decade coverage indicator.

She explained that in 2025 fibre coverage was completed in urban and main rural areas, while works in remote regions are expected to be completed in the first half of 2026, ensuring equal access to modern digital services.

Turning to international connectivity, she outlined that the BlueMed subsea cable branching was successfully completed in 2025, while new expansion projects in the southeastern Mediterranean are currently under way.

She further pointed out that a multi-year agreement with a European satellite company is being implemented, providing access to a new broadband satellite through Cyta’s gateway stations and strengthening the resilience of Cyprus’ networks.

Data hosting infrastructure was highlighted as another core pillar of the development strategy.

She indicated that in 2025 Cyta acquired the state-of-the-art Simplex LCA1 data centre in Larnaca.

She revealed that additional investments of around €20 million are planned for data centres, alongside a further €20 million for energy upgrades across the organisation’s infrastructure.

She also disclosed that discussions are under way for the creation of a large-scale green data centre in cooperation with photovoltaic parks, a project expected to be implemented within one to two years.

Cybersecurity and internal information systems were also addressed.

She underlined that Cyta applies the ISO 27001 international standard and fully complies with the NIS2 regulatory framework, enhancing data protection and operational security.

She emphasised that every investment is made “carefully, with numbers and data,” to ensure long-term returns.

On human resources, she reported that Cyta currently employs approximately 1,960 people, with an additional 60 employees hired during 2025.

She specified that 62.5 per cent of staff are employed under public law status, while 37.5 per cent are employed under private law status.

She also referred to the pension fund, which recorded a €35 million increase in contributions due to early retirement schemes of previous years, with the existing deficit expected to be eliminated within four to five years.

During the discussion, extensive reference was made to the provision allowing for the dismissal of permanent staff due to redundancy in Cyta’s regulations.

She stated that the regulations are expected to be forwarded to the Legal Service by the finance ministry and added that “there are one or two issues, such as the issue of redundancy, that we may need to revisit with the Ministry of Finance”.

Cyta’s finance director confirmed that the organisation has formally submitted its position in favour of removing the provision, adding that employees share the same view.

From the finance ministry’s side, it was stated that the ministry’s position is for the provision to remain, while it was clarified that there is no issue of direct or indirect privatisation of Cyta.

Members of parliament stressed the need to honour previous commitments regarding the removal of the redundancy provision.

“The organisation gave a clear commitment that this provision would be removed so that the agreement on Cyta’s evolution and modernisation could proceed,” Savia Orphanidou argued.

“The issue should be re-examined by the Ministry of Finance so that a provision which is not applied in practice is removed,” Christiana Erotokritou maintained.

“I congratulate the management and staff of Cyta for the financial results and the organisation’s technological leadership in Europe,” Alekos Tryfonidis remarked.

He reiterated his party’s opposition to any form of privatisation.

In a parallel press release, Cyta announced that it submitted its 2026 budget with a development and energy perspective for approval.

The organisation stated that the budget supports critical digital infrastructure and translates into tangible benefits for citizens and the economy.

Cyta also indicated that investments in 5G, fibre, international cables and data centres continue to strengthen Cyprus’ position on the European digital map.

It added that the 2026 budget allows the continuation of development projects with an emphasis on infrastructure, network security and sustainability.

The press release further stated that discussions were held on the legal framework that would allow Cyta to become active in the energy sector.

Cyta said it is seeking institutional equality so that it can operate under the same rules as private providers and other public organisations.

It concluded that in a country among those with the highest costs in the European Union, the organisation can strengthen competition and expand access to green energy for groups of citizens who currently have no alternatives.