BTC profit dragged down by Vivatel loss

2 Feb 2007

Bulgarian Telecommunications Company (BTC) has posted a 15% increase in 2006 net profit to BGL130.4 million (USD87.4 million), but overall performance was muted by a widening loss at its wireless arm, Vivatel. The cellco reported an almost threefold increase in turnover in 2006, but net loss widened from BGL54.7 milllion in 2005 to BGL168.5 million. At the end of 2006 Vivatel claimed 700,000 customers, giving it a 6.7% market share, a figure it hopes to boost to 11% – 13% by the end of 2007. It plans to install 800 base stations across the country this year, improving its coverage to 85% of Bulgarian territory and 95% – 97% of the population. BTC reports fixed line revenues for the year fell slightly year-on-year to GBL992.9 million, while wireless revenues rose to BGL91.68 million. BTC said in 2007 it plans to invest BGL400 million in the expansion of the Vivatel network, the digitalisation of fixed-line infrastructure and the integration of IT systems.

Bulgaria, Vivacom (BTC)