Telekom Slovenije swings to net loss

20 May 2010

Slovenian communications group Telekom Slovenije has posted its consolidated financial results for the first quarter of 2010, including its subsidiaries across southeast Europe. Year-on-year, group operating revenues grew by 3% to EUR203.4 million (USD249.6 million), although EBITDA dipped 7% to EUR65.3 million and net income swung from a profit of EUR14.1 million in Q1 2009 to a loss of EUR600,000 in the three months to 31 March 2010. At that date the group’s number of retail fixed broadband connections was up 5,193 on the end of 2009, at 326,000, whilst the number of wholesale high speed lines stood at 100,000, an increase of 1% quarter-on-quarter. The consolidated number of mobile and fixed telephony subscribers was down 2% on end-2009, as Slovenian cellular users (Mobitel) fell by a net 4,716 in 1Q10 to 1.178 million, whilst in Macedonia (ONE) the figure rose from 423,553 at end-December to 428,808 at end-March. Telekom said that its Kosovan unit IPKO’s mobile user total fell by 37,083 to 494,647 in January-March. The parent company’s operational report included comparative subscriber figures for 31 December 2009 instead of 31 March 2009, as adjusted figures were not available due to the introduction of a new standard methodology for counting users at group level. It also reported that the continuing fall in the number of fixed telephony connections in Slovenia was slightly mitigated by a rise in fixed telephony connections in south-eastern Europe. The telco, which has been actively implementing an investment strategy of expansion in several southeast European markets, added that in full-year 2010 it will focus on the optimisation and consolidation of operations in this region, and will not embark on any new major investment activities.

Slovenia, IPKO, ONE (incl. and Cosmofon), Telekom Slovenije (incl. Mobitel)