Slovak Telekom 2009 report: profits up despite turnover slump

3 Mar 2010

Slovak Telekom has reported that its consolidated group revenues fell by 5.3% to EUR974.2 million (USD1.32 billion) in full-year 2009, whilst its EBITDA increased slightly, by 0.1% to EUR432.0 million, and net profit reached EUR145.5 million, up by 24.3% compared to 2008. It achieved the improvement in its bottom line partly by reducing annual operating expenses by 9.3% to EUR542.2 million. In its domestic market, yearly revenue from fixed line services decreased by 6% to EUR448.6 million as the decline in traditional fixed voice services revenues was only partially compensated by growth in broadband and IT services turnover. Revenues at domestic cellular unit T-Mobile Slovensko amounted to EUR556 million in 2009, down by 6 % over 2008. The group said that revenues were largely influenced by market saturation, but also impacted by a challenging economic environment. As at 31 December 2009 the company had 2.376 million mobile customers, up from 2.317 million a year earlier, whilst its post-paid segment continued to grow, accounting for 58.7% of the total user base at end-2009, up from 57.9% twelve months previously. A gradual decrease of average prices for calls, data transmission and other services led to the cellco’s monthly ARPU continuing a decline to EUR18.5 in 2009, despite a strong increase in both total voice and data traffic (year-on-year 10% and 43% respectively). However, the proportion of non-voice services ARPU in the blended total continues to grow; text messages, data services, broadband internet and mobile content services including new services such as micropayments made up 20% of the overall ARPU figure.