Telekom’s revenues up 9%, net income climbs 5%

6 Mar 2007

The Telekom Slovenije Group posted a 5% year-on-year increase in net profit to EUR100.7 million (USD132.3 million) for the full year 2006, on operating revenues that climbed 9% to EUR733.6 million. Fixed line EBITDA stood at EUR67.2 million on revenues that rose by 6% to EUR406.2 million, whilst wholly owned wireless subsidiary Mobitel posted an operating profit of EUR62.2 million, up 11% year-on-year, with net profit of EUR44.3 million, although its GSM subscriber base grew by only 5,000 in the year to 1.28 million at the end of December. Net income at internet service provider Siol, meanwhile, surged 32% to EUR2.2 million. Siol director Rudolf Skobe said the subsidiary would be fully integrated by the end of March. Group Chief Executive Bojan Dremelj described the year as ‘full of challenges and very successful for the group.’ Telekom invested EUR160 million last year, with over half the total spent on ‘key projects’ by the parent company, with 40% poured into mobile network development, according to Dremelj. The CEO said the group would have to integrate horizontally in the future: ‘I see the group as a holding with clear roles for fixed and mobile telephony and a new segment of content.’ The firm intends to establish a separate company in the coming months which would provide content services currently generated by individual divisions. For 2007, the Group’s main objectives include increasing stakeholder value, developing new services and expansion in particular to markets in Southeast Europe and the Mediterranean region. Dremelj said the biggest challenge this year would be the construction of a GSM network in Kosovo, where Telekom won the second mobile operator’s licence through its local subsidiary Ipkonet last month.

Slovenia, Telekom Slovenije (incl. Mobitel)