Q4 2014 for former telecomm player Cosmote was marked by T rebranding process in Romania (part of Deutsche Telekom) which fully integrated the commercial operations of Telekom Romania Communications and Telekom Romania Mobile Communications.
According to key performance indicators for the fourth quarter of 2014 fiscal year, ended December 31st, 2014, as reported on Thursday by OTE Group Telekom Romania Communications recorded revenues of EUR 609.1 million, at par with 2013 and growth on key areas such as TV and integrated offers.
„EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) for 12 months of 2014 was EUR 149.2 million, up by 1 percent y-o-y, while Proforma EBITDA for 2014 was up 0.4 percent to EUR 159.9 million, compared to the same period last year. The results have been affected by the impact of the special constructions tax, which was significant on the company which owns, historically, an infrastructure based on copper and ducts. ProForma EBITDA for Q4 2014 (EUR 41.5 million compared to EUR 49,2 million in Q4 2013) reflects higher marketing costs associated to rebranding and a one-time transaction related to content capitalization in Q4 2013 which rendered the content cost for Q4 2014 much higher,” a press release reads.
Commercially, TV continues to be the leading growth segment, reaching 1,414 million customers, up by 4.5 percent in December 31, 2014 versus same period 2013. Corresponding revenues for Q4 2014 were up 8.2 percent compared to Q4 2013.
Internet revenues in the quarter remained at the same level while broadband subscribers reached 1,232 million at the end of 2014. Telekom Romania wholesale revenues decreased by 21.6 percent compared to Q4 2013, international transit revenues compensating part of the decline generated by the reduction of fixed and mobile call termination rates.
As regards Telekom Romania Mobile Communications, in 2014, the business segment grew by 19 percent on a yearly basis. Service revenues from the business segment increased by 7 percent in Q4 2014 versus Q4 2013, mainly due to mobile data consumption which doubled in 2014, as compared to 2013. The total customer base (including Zapp) stood at approximately 6 million, at the end of 2014, out of which 26.8 percent postpaid. Despite a challenging 2014, revenues in Q4 2014 amounted to EUR 112,6 million.
„The solid strategy established for 2015 is meant to continue delivering good results throughout the year. We will continue to have a special focus on our hero segments to position Telekom Romania as the best TV experience provider on the market. On the business market we aim to maintain our leading position and to become the first choice in terms of ITC solutions”, Nikolai Beckers, CEO, Telekom Romania said.
Mobile data proved a significant growth driver, almost doubling in 2014, compared to 2013 (90 percent increase), in correlation with a 35 percent increase of the smartphones ratio out of the total terminals sold in 2014, versus 2013. The total number of 4G customers almost tripled in Q4 versus Q3, posting a staggering 287 percent increase.
Overall, 2014 revenues remained relatively stable, at EUR 439.4 million, down 4.2 yoy, but up by 3.1 percent compared to the same period from 2014, if the impact of the interconnection tariff cut is excluded.
EBITDA margin reached 24 percent in FY 2014, down by 1.9 pp versus FY 2013, reflecting the impact of the interconnection tariffs as well as the tax on special constructions. EBITDA reached EUR 105.6 million in 2014.