Telekom Srbija sees net income rise 1.5%

26 Apr 2011

Telekom Srbija has announced that its net income rose 1.5% in the year ended 31 December 2010 to reach RSD15.8 billion (USD228.5 million) on the back of rising demand for internet and multimedia services. The Belgrade-based company said its mobile subsidiary MTS ended the year with 5.5 million users, while the number of ADSL subscribers rose 53.1% to 416,000 and the number of IPTV users tripled to 82,000. The company reduced debt by RSD8.3 billion to RSD55.1 billion, while 2010 revenue totalled RSD88.5 billion. The company is also the majority owner of Telekom Srpske in neighbouring Bosnia-Herzegovina and MTel in Montenegro. It said that consolidated sales rose 3.9% to RSD117.4 billion, while net income for the group rose by 27.6% to RSD17 billion.

Telekom Srbija is in the midst of a major change of ownership: Telekom Austria has offered EUR950 million in cash and EUR450 million in investment over three years for a 51% stake in the company. The government has given Telekom Austria until 3 May to work on its ‘best offer’ before deciding whether to reject or accept it. It has been reported that Telekom Austria is considering a plan which would see it swap its Serbian mobile operator Mobilkom (VIP Mobile) with Deutsche Telekom. According to local press reports, Telekom Austria is offering Greek telco OTE’s parent company Deutsche Telekom a chance to swap VIP for the 20% stake in Telekom Srbija held by OTE.