Slovenia: The Telekom Slovenije Group generated EUR 325.4 million in net sales in H1

Slovenia: The Telekom Slovenije Group generated EUR 325.4 million in net sales in H1

The Supervisory Board of Telekom Slovenije, d.d., discussed the unaudited report on the January–June 2020 results of the Telekom Slovenije Group and company Telekom Slovenije, d.d., at its 3rd regular meeting, held on Wednesday.

“The Telekom Slovenije Group generated EUR 325.4 million in net sales and EUR 335.4 million in total operating revenue in the first six months of this year, which is 2% less year-on-year. Revenue in the first half of the year was affected by the Covid-19 pandemic, with revenue in the mobile segment decreasing due to lower revenue from roaming, and wholesale revenue dropping due to lower revenue from international voice traffic and foreign users roaming in Telekom Slovenije’s network. The situation also affected the sale of other services and products. Revenue from traditional phone services was also down. E-commerce revenue increased by 70 % year-on-year, and revenue in the energy segment was also higher compared to the same period last year”, said the company in a statement issued on Thursday.

Telekom Slovenije Group’s earnings before interest and taxes (EBIT) stood at EUR 20.7 million in the first six months of this year. Adjusted for the effects of the agreement on the sale of Planet TV, EBIT would amount to EUR 27.3 million, which is 15% or EUR 3.5 million more than in the first half of 2019. Telekom Slovenije Group’s earnings before, interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 104.3 million. Adjusted for the effects of the agreement on the sale of Planet TV, EBITDA would amount to EUR 111 million, which is 1% less than in the first half of 2019. EBITDA margin stood at 32.1%. Adjusted for the effects of the agreement on the sale of Planet TV, EBITDA margin would be 34.1%, which is 3% more than in the first six months of 2019. After corporate income tax and deferred taxes, the Telekom Slovenije Group recorded a net profit of EU 14.8 million in the first six months of 2020. Adjusted for the effects of the agreement on the sale of Planet TV, the net profit would amount to EUR 21.5 million, which is EUR 1.9 million more year-on-year.

In the statement is noted that, as the Telekom Slovenije Group already announced, the epidemic in the country affected the net sales of Telekom Slovenije, d.d., in both, retail and wholesale markets (international), as well as other companies in the group due to a standstill in operations during the epidemic, and reduced operations afterwards. The group responded by immediately adopting additional measures aimed at further optimising its operations and subsequently reducing the effects on its operations. The Telekom Slovenije Group believes that despite implementing all these measures, the negative effect of Covid-19 on its EBITDA will amount to about 3% compared to the target. The Telekom Slovenije Group shall continue to closely monitor the Covid-19 related situation in the second half of the year, and assess risks in its supply chains, system operations and profitability of its services, and credit risks, and will take any necessary measures.

Telekom Slovenije was the first Slovenian operator to take the next step in the development of mobile technology and launched the fifth generation mobile network (5G) nationally on 23 July 2020 by using existing base stations and the 2600 MHz frequency spectrum it already utilizes for its fourth generation mobile network. This evolutionarily upgraded 4G/5G network will allow users to achieve higher data transfer speeds than on the LTE/4G network already in this first phase, while the full potential of 5G technology will become available to users after additional frequency bands are awarded. In the first phase, Telekom Slovenije, d.d., has so far upgraded 150 base stations, providing approximately 25% population coverage with the 4G/5G network. By the end of the year, the company expects to surpass 33% coverage. Telekom Slovenije, d.d., will soon introduce mobile phones that support the 4G/5G network and the commercial terms and conditions for using it, after the first vendors complete all the required software updates./ibna