Telekom Slovenije’s 2010 profits suffer from revaluation of foreign units

24 Feb 2011

Slovenian telco Telekom Slovenije has posted a consolidated group operating loss of EUR176.4 million (USD241.9 million) for the full year 2010, compared to an operating profit of EUR64 million the previous year, and an annual net loss of EUR211.2 million, swinging from a profit of EUR26 million in 2009. The profit slump stems from an examination of the fair value of investments in the group’s telecoms subsidiaries in Macedonia (FYROM), Kosovo, Albania and Republic of Srpska (Bosnia and Herzegovina), which was undertaken in the second half of 2010. A valuation by an authorised independent appraiser showed that the substitutable value of investments in foreign subsidiaries fell below their book value, leading Telekom Slovenije to impair its assets in the amount of EUR208.2 million, a total it added to financial expenses for the year. Telekom Slovenije’s group revenue of EUR843.6 million in 2010 was down by 1% on the previous year, whilst EBITDA shrunk by 8% to EUR246.2 million. Without the effects of impairments and certain other adjustments, the group said that its annual consolidated operating profit would have been EUR50.6 million, with net profit of EUR15 million.

Slovenia, Telekom Slovenije (incl. Mobitel)