Bulgarian deal drives up Telekom profits

23 Aug 2006

Telekom Austria has reported a massive jump in second quarter earnings thanks to its acquisition of Bulgarian cellular operator Mobiltel. Net profits were up almost 75% to EUR130.9 million, while revenues climbed 16% year-on-year to EUR1.17 billion. Sales at the mobile division rose 33.1% to EUR710.9 million, offsetting a drop in wireline revenues, which fell 1.9% to EUR519.3 million. Telekom’s domestic wireline division had 637,600 ADSL subscribers at the end of June, up 28.8% since June last year. The wireless segment had 9.46 million subscribers, meanwhile, up 89.1% year-on-year. Mobilkom Austria had 3.47 million mobile customers while Mobiltel Bulgaria had 3.86 million, Vipnet Croatia had 1.73 million, and Si.mobil in Slovenia had 392,700.