Telekom Slovenije posts 1% drop in revenues, declares war on costs

31 May 2012

Slovenian and south east European communications group Telekom Slovenije has posted a 6% year-on-year increase in consolidated net profit to EUR15.4 million (USD19.1 million) in the first quarter of 2012, as it fought to bring costs down and diversify in the face of declining core telecoms revenues. The group’s operating turnover reached EUR193.8 million in January-March 2012, down by 1% year-on-year, while operating profit amounted to EUR22.7 million, also down by 1% on the first quarter of 2011. EBITDA fell by 5% to EUR68.7 million in Q1 2012 while quarterly CAPEX investment was raised by 18% y-o-y to EUR14.5 million. In its report, Telekom said that it was aiming to counter the trend of falling revenues across south east European markets ‘primarily through the relentless reduction of all types of costs and by expanding operations beyond traditional telecommunication activities to growing segments linked to television, digital advertising, the mobile transfer of data, management services and cloud computing services,’ with the aim of improving profitability.

As the price war in the Slovenian mobile telephony segment intensified, the telco’s domestic fixed, mobile and broadband revenues declined by 3% year-on-year to EUR162.9 million in the first three months of the year. ‘Other’ companies in Slovenia earned EUR19.0 million in revenues in 1Q12, 1% lower than twelve months previously. The group’s Macedonian operations, under the ‘ONE’ banner also saw quarterly sales decline, by 2% to EUR16.4 million. Its Kosovo subsidiary, IPKO, however, grew its turnover by 5% to EUR16.3 million, and other group companies in south east Europe increased sales by 4% to EUR4.9 million.

Slovenia, IPKO, ONE (incl. and Cosmofon), Telekom Slovenije (incl. Mobitel)