During FY 2023, Telekom Slovenije recorded revenue growth of 7% YoY, an EBITDA increase of 6%, and a net income of EUR 47.1m, a 25% increase YoY.
Starting off with the revenue, top line amounted to EUR 694.9m, an increase of 7% YoY. Telekom Slovenije notes that revenues were up in the mobile segment and broadband services. The most significant increase in top line was noted in ICT segment in the provision of cyber security.
Telekom Slovenije further notes that they recognized an impairment assessment of the infrastructure damaged in the August floods. On the op. profitability level, the recognized net effect is estimated at EUR 3.9m. Furthermore, the estimated impairment of the present value of property, plant, and equipment amounted to EUR 5.6m and has been recognized in other op. expenses. At the same time, the Company notes that this cost should be taken together with estimated other op. revenues, which amounted to EUR 1.7m.
Total expenses amounted to EUR 644m, noting a 5.8% increase YoY. The largest increase came from the aforementioned other op. expenses, which increased by 2.7x, or EUR 12.4m to EUR 19.4m. Costs of services increased by 1.5% YoY to EUR 211.7m, in line with the higher revenues in the wholesale market. Meanwhile, the cost of material and energy increased by 34.5% YoY to EUR 30.4m, and finally, labour costs increased by 7% YoY to EUR 126.1m.
As such, the EBITDA amounted to EUR 228.6m, increasing by 6% YoY. Furthermore, the EBITDA margin amounted to 32.9%. In terms of the net financial result, it declined to EUR -16.6m (vs. EUR -4.9m in 2022). This mainly came as a result of higher financial expenses increasing by more than 2x, to EUR 18.7m. Due to these developments, the net income amounted to EUR 47.1m, increasing by 25.5% YoY. As such, the net income margin improved by 1 p.p. to 6.8%. Affecting Telekom Slovenije Group’s net profit was a change in the corporate income tax rate from 19% to 22% from 2024 on, which had a positive effect on deferred taxes in 2023 in the amount of EUR 5.7m. Had energy prices in 2023 remained at the 2022 level, and if there was no state aid for energy in 2023 and there was no negative effect of floods and no effect of a change in the tax rate; the net profit of the Telekom Slovenije Group would have been 30% higher than in 2022.
Telekom Slovenije key financials (FY 2023 vs. FY 2022, EURm)
Source: Telekom Slovenije, InterCapital Research
Furthermore, Telekom Slovenije also commented on its strategic goals for the period 2024-2028. In 2024, they expect the op. revenue at EUR 717.4m, an EBITDA of EUR 233.6m, and a net income of EUR 43.2m. Investments are expected at EUR 235.7m. By 2028, they expect the EBITDA at EUR 280m, and a net income of EUR 83m. Investments in the 2024-2028 period are expected at EUR 951m. In terms of the dividends policy, they expect the payment of dividends in the amount of 30-50% of the Group’s net profit, taking into account the current financial situation and investment needs of the Group.
