Telekom Romania draws more mobile subscribers, but slighty loses on fixed voice segment

Financial results reported by Telekom Romania Communications for Q3 2015 maintain the same growth trends for key areas such as integrated offers and TV, but also reflect a drop on other segments with direct impact on revenues and EBITDA, a press release informs on Thursday.

Thus, revenues amounted to EUR143.5 million in Q3 2015, down by 5.2 percent, as compared to Q3 2014. For the first 9 months of this year, revenues were EUR 442.7 million, registering a decrease of 3.3 percent compared to the same period of last year.

“The first 9 months of 2015 reflect stability on certain areas, such as the mobile segment, steady growth rates on flagship segments namely convergent services and TV, but also a drop on traditional areas as fixed voice. The number of MagentaONE customers increased by almost 10,000 within September, from approximately 150,000 reported at the beginning of the month. On the mobile segment, we continue to register constant growth of our postpaid customer base, with double-digit growth in terms of overall gross additions, residential and business”, Anastasios Tzoulas, Chief Financial Officer, Telekom Romania operations said.

ProForma EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) for Q3 2015 was at EUR 23.9 million, 31.7 percent lower compared to Q3 2014, partially due to fixed telephony revenue decrease and a drop to other income generated by collateral activities such as disposal of scrap copper and real estate.

The number of customers with MagentaONE converged services exceeded 160,000, resulting an increase of the relevant mobile revenues of 201 percent in Q3 2015 vs. Q3 2014. Thus, customer base grew by 2.5 percent at the end of September 2015, to 1.43 million.

Corresponding revenues for the first 9 months of 2015 were up 5 percent compared to the same period of 2014. Most significant growth rates in terms of TV revenues depending on technology were generated by Interactive television (IPTV) and digital cable services.

Broadband subscribers in the quarter reached 1.2 million, down by 2.9 percent compared to Q3 2014 due to areas where it is not available optical infrastructure. The drop of fixed voice subscribers, by 0.2 percent in Q3 2015 vs Q3 2014, and subsequently of revenues, is in line with the general downward trend on this segment.

Even though revenues from segments such as IT&C solutions and data services continued to generate relevant results, overall they couldn’t offset the decreasing revenues from wholesale and other non-core segments. The voluntary retirement costs amounted to EUR 12.2 million in Q3 2015, with impact on EBITDA level.

At the same time, Telekom Romania Mobile Communications registered stable results in Q3 2015, with revenues amounting to EUR 109.2 million , marking a 2.1 percent increase versus Q3 2014.

The business segment grew by 7.7 percent on a yearly basis, while service revenues on the B2B segment increased by 18.3 percent in Q3 2015 versus Q3 2014. The total customer base (including Zapp) at the end of Q3 2015, was of approximately 5.7 million, down 2.9 percent compared to Q3 2014.

At the moment, Telekom Romania offers 4G coverage to 57 percent of the urban population and 32.4 percent of the total population (urban and rural). In Bucharest, 4G covers 98 percent of the city area, while in Brasov and Poiana Brasov, main tourist destinations, the coverage is 98 percent and 100 percent respectively.

4G coverageAnastasios TzoulasB2Bbroadbandbusiness segmentChief Financial Officerdata servicesfinancial resultsfixed telephonyin the first 9 months of 2015MagentaONEnon-core segmentsoptical infrastructurerevenuessubscribersTelekom Romania CommunicationsTelekom Romania Mobile Communicationstotal customer baseurban and ruralvoluntary retirement
Comments (1)
Add Comment