Slovak Telekom reports 12% profit drop, launches secondary lawsuit against regulator

24 Feb 2012

Slovakian quadruple-play operator Slovak Telekom (ST), part of the Deutsche Telekom group, has posted a 12% year-on-year fall in net income to EUR106 million (USD141 million), on total revenues which dropped 4% to EUR897 million. Mobile revenues saw the biggest relative turnover decline, with segment sales decreasing by 6% on the previous year to EUR470 million in 2011, partly affected by regulatory factors, the telco said. Fixed network operations were slightly more resilient in revenue terms, contributing EUR461 million in the year, a 0.8% slide. Consolidated EBITDA fell by 3.5% to EUR389 million in the twelve-month period. Despite fixed lines in service continuing to decline, decreasing by 3.8% year-on-year to 1.02 million, this result was partly offset by fixed broadband lines increasing by 6.4% to 464,000 and the pay-TV customer base growing by 29% to 160,000. ST announced a rebranding of its services in October 2011, dropping the respective mobile (T-Mobile) and fixed (T-Com) brands in favour of the converged Telekom (T) brand in line with the strategy of its German parent.

Elsewhere, ST filed a second motion with the Supreme Court related to the August 2011 ten-year extension of mobile licences, reports Flash News. In its latest lawsuit, ST challenged the fee calculating procedure used by the Telecommunications Office of the Slovak Republic (TU SR), as well as the final amount of EUR48 million. ST called the figure an ‘inappropriate and baseless lump-sum payment.’