Mobiltel reports revenue decline to EUR97.5m

9 May 2013

Bulgarian telco Mobiltel has published a press release announcing its consolidated financial results for the first quarter of 2013, with reported decline in revenues of 15.8% to EUR97.5 million (USD128.32 million) from EUR115.9 million year-on-year. The drop in earnings was primarily due to decreased interconnection revenues, caused by the adoption of lower mobile termination rates in July 2012, with the regulatory intervention responsible for 60.5% (EUR11.1 million) of the revenue decline in 1Q 2013. The negative development in returns was reflected by a 19.8% fall in EBITDA to EUR39.4 million, despite a reduction in operating expenses of EUR9.6 million in the first quarter of 2013. Average revenue per user (ARPU) also declined by 16.9% from EUR6.1 to EUR5.0 in Q1 2013, while average revenue per line (ARPL) decreased by 12.6% to EUR11.6. Mobiltel attributed the adverse result in ARPU to the decrease in the share of its business subscribers in comparison to 2012. ARPL-relevant revenues, however, increased by nearly 7% year-on-year to EUR5.6 million, a consequence of higher number of access lines and near-doubling the TV customers, compared to 1Q 2012.

Mobiltel reported 1.5% reduction in the total number of mobile users to 5.402 million year-on-year, with the company calculating that its market share in terms of subscriptions dropped to 45.9% in the first quarter of 2013, compared to 48.4% in Q1 2012, according to its own figures. Fixed access lines grew steadily in the first quarter of 2013, with 22.3% year-on-year increase to 162,100 from 127,100, mainly attributed to an increase in fixed broadband subscriptions.

Bulgaria, A1 Bulgaria (Mobiltel)