Telekom Romania Communications posts show stable revenues for full year 2016, with smaller EBITDA, but positive performance on integrated fixed-mobile bundles segment, TV and wholesale. Thus, according to key performance indicators in fourth quarter 2016, ended December 31, 2016, as reported by OTE Group, 12 months revenues stood at EUR 602.5 million, up 0.14 percent against full year 2015. Quarter to quarter, revenues reached EUR 166.8 million increasing by 4.9 percent compared to Q4 2015, and the highest growth compared to the other quarters.
Telekom Romania Communications wholesale revenues increased by 10 percent in 2016, to EUR 113.1million, compared to the same period of 2015. Fixed and mobile RGUs were 4.8 million at the end of 2016, down by 0.7 percent compared to the same period of last year.
“In 2016, we continued to focus on our key-objectives: growth on MagentaONE convergent segment and TV services, as well as offering attractive mobile services. Wholesale segment positively contributed to the results. In terms of high-end network coverage, our customers benefit from increased coverage of 4G services of 97.43 percent in urban population. For the fixed segment, we exceeded our target of 2 million household FTTx footprint, as set for 2016. In 2017, we’ll continue focusing on generating more value to our stakeholders, our customers and shareholders, as well as consolidating our position on all segments of the local market”, said Miroslav Majoros, Chief Executive Officer, Telekom Romania operations.
The value of Adjusted EBITDA reported for Q4 2016 was of EUR 28.3 million down by 20.5 percent versus Q4 2015. For the entire year 2016, Adjusted EBITDA was EUR 93.5 million compared to EUR 118.4 million in 2015, down by 21 percent, as positive results reported for Q3 2016 couldn’t compensate the value reported at 12 months. Operating Expenses, excluding depreciation, amortization, charges related to voluntary retirement programs and restructuring, as well as RONET costs, increased by 3.96 percent for entire 2016 compared previous year, following higher direct costs related to customers, but also higher indirect costs, mainly in the area of network rent and customer care.
MagentaONE customers’ growth rate stood at 64 percent, reaching over 370 thousands as of December 31st 2016, while revenues were up 63.8 percent for the same period.
TV customers grew by 0.8 percent yoy, reaching 1.464 thousands at the end of 2016, with corresponding revenues up by 4 percent in Q4 2016 compared to Q4 2015.
The number of broadband subscribers (both fixed and mobile) was 1.186 thousand at the end of 2016 versus 1.188 thousands in Q3 2016. Revenues from broadband for Q4 2016 were down by 1 percent versus the same period of last year.
Voice users (fixed and mobile) reached 2.151 thousands in the last quarter of 2016, from 2.165 thousands in Q3 of the mentioned year, mainly due to the fixed to mobile substitution. As a result, revenues generated by fixed voice were down by 13 percent in Q4 2016 vs. Q4 2015.
At the same time, Telekom Romania Mobile Communications registered total revenues of EUR 121.9 million in Q4 2016, up by 0.7 percent compared to the same period of last year, while service revenues decreased by 6.9 percent, to EUR 73.8 million in Q4 2016. At 12 months, the total revenues increased by 4.2 percent, to EUR 457.1 million.
In Q4 2016, compared to Q4 2015, Telekom Romania Mobile’s total customer base decreased by 7.1 percent, to 5.3 million, out of which 30.5 percent are post-paid customers. The total number of business customers grew by 6.3 percent compared to Q4 2015, reflecting the company’s targeted offers for professional users and synergies created following its rebranding, together with Telekom Romania Communications, under the Telekom brand.