Telekom Slovenije returns to profit on cost savings as it prepares for fixed/mobile merger

27 May 2011

Slovenian former monopoly telco Telekom Slovenije has posted a year-on-year 11% rise in earnings before interest, tax, depreciation and amortisation (EBITDA), a doubling of operating income (EBIT), and a swing from negative to positive net income in the first quarter of 2011, despite a 4% drop in revenues. The fixed, mobile and broadband group’s EBITDA reached EUR72.5 million (USD102.5 million) in January-March, as EBITDA margin increased by five percentage points y-o-y to 37%, EBIT stood at EUR22.9 million and net profit amounted to EUR14.5 million (reversing a loss of EUR600,000 in 1Q10), on revenues of EUR194 million. The company attributed the profit improvements to wide-ranging cost reduction measures both domestically and in restructuring its subsidiary operations in Kosovo and Macedonia, and is targeting net income in full-year 2011 of EUR28.1 million. The firm also confirmed that the planned merger of Slovenian mobile unit Mobitel into parent Telecom Slovenije will go ahead as planned on 1 July 2011 to achieve further synergies.

Slovenia, Telekom Slovenije (incl. Mobitel)