Slovak Telekom 9M sales down 4% on price drops

5 Nov 2010

Slovak Telekom has reported revenues for the first nine months of 2010 of EUR701.6 million (USD994.9 million), down 4% year-on-year, attributing the decline to significant reductions in the prices of some services due to regulation, as well as an overall decrease in prices for telecoms services in the Slovak market. Earnings before interest, tax, depreciation and amortization (EBITDA) reached EUR315.8 million in January-September 2010, down by 8.9% y-o-y. Consolidated 9M10 net profit fell by 12.4% y-o-y to EUR108.4 million.

Slovak Telekom’s fixed network revenues in the first three quarters of the year rose 4% y-o-y to EUR348.1 million, as declining traditional PSTN voice revenues were offset primarily by increasing revenues in internet and IT services. Fixed division EBITDA was down 2% to EUR135.4 million.

Revenue from the group’s mobile business (T-Mobile) reached EUR374.9 million in 9M10, down 11% y-o-y, mainly blamed on a series of regulatory decisions on interconnection charges and roaming prices. Mobile EBITDA stood at EUR180.5 million, down by 13.2%, whilst the company said it continues to invest in mobile broadband network expansion and introducing new subsidised phones on the market.