Business News

Telekom Slovenije Reports EUR 14.5M in Q1 Profit

Ljubljana, 30 May (STA) - Slovenia's biggest telecoms company, Telekom Slovenije, reported EUR 14.5m in net profit on EUR 190.5m in revenues for the first quarter of the year, in what is a slight deterioration compared to the same period last year.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) were just shy of EUR 63m, while earnings before interest and taxes (EBIT) stood at EUR 20.3m.

The operating indicators were "in line with the planned values, while compared with other operators in Europe they show that Telekom Slovenije ranks among the most successful in overcoming the general negative trends", a press release issued by the company ahead of Thursday's news conference reads.

The telecoms group reported slightly better results in the first quarter of last year when it generated EUR 15.4m in net revenues and EUR 193.8m in revenue.

The group continues to be affected by declining revenues in traditional fixed-line and mobile telephony, and a slow-down in growth in the broadband market and services based on that technology.

The company reports "a notable migration of subscribers to new, more affordable packages that include more services" in the mobile segment and a continued decline in the fixed segment, which trend it says is also observed by other leading European operators.

Telekom Slovenije is seeking to counter the trends through cost-cutting and measures to restructure the organisation, consolidate operations and stabilise revenues, while working to expand beyond traditional telecommunications services to television, digital advertising, management services, cloud computing services and other ICT services.

The group reports having reversed negative trends at the Macedonian subsidiary One, while Ipko in Kosovo and Aneks in Bosnia and Herzegovina generated better than planned profit and key financial indicators were trumped at the Albanian subsidiary Primo.

Telekom Slovenije projects EBITDA in the amount of EUR 245m and a net operating profit of EUR 50m for this year. Investment in fixed assets is planned at EUR 130m, as much as last year.

The business report was approved on Tuesday by the supervisory board, which also discussed proposals for the shareholders' meeting scheduled for 1 July. A dividend payout of EUR 1.46 gross per share is proposed.

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