M-Tel reports 20.3% decline in revenue to EUR101.3m

13 Aug 2013

Bulgarian telco MobilTel (M-Tel) has published its financial results for the second quarter of 2013, reporting a 20.3% decline in revenues to EUR101.3 million (USD134.83 million) from EUR127.2 million year-on-year. Parent company Telekom Austria Group attributed the drop in earnings to decreased interconnection revenues, caused by the adoption of lower mobile termination rates (MTRs) in July 2012. The negative trend was also reflected in a 29.4% y-o-y fall in EBITDA to EUR43.0 million, down from from EUR60.9 million one year earlier.

In operational terms, M-Tel reported a total of 5.307 million customers by end-June 2013, down by 4.1% from 5.532 million users reported in 2Q12. The reduction was attributed to a reassessment of the active pre-paid customer base, although the combination of a reduced mobile subscriber base and flat contract subscriber numbers pushed up the company’s post-paid ratio to 71.8%. Mobile broadband subscribers, on other hand, increased by 28.7% y-o-y to 163,900 users from 127,400 subscribers reported in 2Q12. In the quarter under review, mobile ARPU dropped to EUR5.3, a 19.2% annual decline on the EUR6.6 reported in 2Q12, as a result of termination rate cuts and reduced prices.

Bulgaria, A1 Bulgaria (Mobiltel), A1 Telekom Austria Group