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Cyprus’ state-owned telecommunications provider Cyta reported a sharp rise in profits in 2025 and outlined an ambitious new round of infrastructure investments as it presented its 2026 budget to Parliament on Monday.
Cyta Chairwoman Maria Tsiakka told the Parliamentary Committee on Finance and Budget that the organization expects profit before tax to reach €85 million for 2025, up from a year earlier, as revenues climbed to €442 million from €415 million in 2024. She described the budget as one of “responsibility and continuity,” aimed at delivering immediate benefits to citizens, businesses and the broader economy.
“Our primary objective is the uninterrupted operation and continuous upgrading of the Republic’s critical digital infrastructure,” Tsiakka said, stressing that financial performance is closely tied to a long-term investment plan.
Over the past 25 years, Cyta has contributed more than €1.29 billion to public finances, including €925 million in dividends and €373 million in taxes, she noted.
A major focus of the 2026 budget is the expansion of next-generation networks. Cyta has completed nationwide 5G coverage and advanced its fiber-optic rollout, developments that have placed Cyprus first among EU member states in the Digital Decade coverage index, according to Tsiakka. Fiber coverage in urban centers and main rural areas was completed in 2025, with work in remote regions expected to conclude in the first half of 2026.
International connectivity is also being strengthened. Cyta successfully completed a branch of the BlueMed submarine cable system in 2025 and is pursuing additional projects in the southeastern Mediterranean. At the same time, a multi-year agreement with a European satellite operator is providing access to a new broadband satellite via Cyta’s gateway stations, boosting network resilience.
Data infrastructure forms another pillar of the investment strategy. Cyta acquired the Simplex LCA1 data center in Larnaca in 2025 and plans to invest about €20 million more in data centers, along with a further €20 million for energy upgrades. Discussions are also underway for a large “green” data center, potentially developed in partnership with photovoltaic parks, which could be implemented within one to two years.
Tsiakka said the organization is also stepping up spending on cybersecurity and internal information systems, applying the ISO 27001 international standard and complying fully with the EU’s NIS2 framework. “Every investment is made carefully, based on figures and data,” she said, emphasizing long-term returns and operational security.
Cyta currently employs about 1,960 people, with 60 new hires added in 2025. Roughly 62.5% of staff are employed under public law and 37.5% under private law contracts. The organization’s pension fund has seen contributions rise by €35 million due to earlier early-retirement schemes, with the remaining deficit expected to be eliminated within four to five years.
The committee discussion also revisited a long-running dispute over a provision in Cyta’s regulations allowing for the dismissal of permanent staff due to redundancy. Tsiakka said the issue may need further discussion with the Ministry of Finance before revised regulations are sent to the Legal Service. Cyta’s chief financial officer said the organization supports removing the provision, a stance he said is shared by employees.
The Ministry of Finance, however, maintained that the provision should remain, while reiterating that there is no plan for direct or indirect privatization of Cyta.
Several lawmakers urged the government to honor past commitments to remove the clause. DISY lawmaker Savia Orfanidou said Cyta had explicitly agreed to do so as part of its modernization plan, while committee chairwoman Christiana Erotokritou of DIKO called for the matter to be re-examined, noting that the provision is not applied in practice.
DIKO–Cooperation MP Alekos Tryfonides praised Cyta’s management and staff for the strong financial results and the organization’s technological standing in Europe, again voicing his party’s opposition to any form of privatization.
