BTC sees profit drop as expenses mount and revenues fall

22 Nov 2011

Bulgarian triple-play provider, Bulgarian Telecommunications Company (BTC) has unveiled its financial results for the third quarter of 2011, showing a steep fall in profit from the year-ago period. BTC, which operates under the brand name Vivacom, saw a slight increase in revenue for the quarter ended September 2011 with sales rising from BGN227.5 million (USD157 million) to BGN 231.3 million. Increases in interconnection costs (up 33% y-o-y), operating expenses (up 20% y-o-y) and the loss of income from discontinued operations, however, saw net profit fall from BGN57.6 million to just BGN5.8 million.

Over the nine-month period ending September 2011, BTC’s revenues fell by 1.7% y-o-y to BGN659.3 million, whilst spending increased by 4.6% to BGN190.5 million. In June 2010 BTC ended its agreement with NEF Telecom Bulgaria, which had provided technical and operational advice, analysis and training to the telco since 2007, reducing its ‘professional expenses’ by BGN22 million, or 87%. This was offset by higher payments towards customer services, network maintenance and repairs and advertising. As a result, profit for the nine-month period fell by 76.5% y-o-y, from BGN106.1 million to BGN25 million. As previously reported by CommsUpdate, Vivacom is currently attempting to raise capital by selling a 25% share in the company, although a recent attempt by Lebanon’s Oger Telecom to acquire the shares fell through.

Bulgaria, Vivacom (BTC)