In 2020, Optima Telekom recorded a decrease in sales of 14%, a decrease in EBITDA margin before one time items after lease of 3% and a decrease in net profit of 87%.
Optima Telekom published their FY 2020 results, according to which the company recorded sales of HRK 452m. This represent a decrease of 14% YoY which came mainly on the back of a decrease in the volume of business in the field of international transit of voice service.
In the residential business segment in 2020, Optima placed the greatest emphasis on preserving the customer base and growing its value. In 2020, the outflow of users was significantly reduced, however, the total number of service users (IPTV, Internet, JGU) decreased by 4.3% YoY, which resulted in a 5.4% decrease in telecommunications revenues in this segment. The decrease in the customer base of services (IPTV, Internet, JGU) in 2020 relates to the segment of public voice service and the Internet, which is largely caused by the continuing trend of substitution of services based on mobile technology and is partially compensated by user growth in IPTV service segment.
In the business segment in 2020, total revenues from ICT and telecommunications services together grew by 6.4% YoY. At the annual level, revenues from the sale of ICT solutions and services amounted to HRK 19.4m, which is an increase of 64.6% YoY, while revenues from telecommunications services in the business segment in the same period decreased by 1.2 % as a result of a smaller number of service users in the segment of public voice service, internet and IPTV.
In 2020, total wholesale revenues were down by 54.1% YoY. Such a drop can be attributed to the decrease in the volume of business in the field of international transit of voice services. Transit revenues fell by 70.3% YoY. The decrease in income in question is accompanied by a proportional decrease in transit costs, and its impact on EBITDA is negligible.
The operating expenses of the Group amounted to HRK 426.92m, representing a decrease of 12%. Going furhter down the P&L, Optima Telekom recorded a decline of 3.4% in EBITDA before one-time items after leases, which is primarily the result of greater negative impacts of IFRS 15 and lower own work capitalization. Meanwhile the company’s EBITDA margin increased by 3.1 p.p. and amounts to 28.0%. Higher amortization by 7% further widended the decrease of operating profit, which amounted to HRK 29.1m (-37%).
In 2020, the company noted a net profit of HRK 1.66m, representing a decrease of 87%. Such a decrease puts the profit margin at a mere 0.4%, which is a decrease of 2 p.p. YoY. The realization of net profit on the level of the Group and the Company is affected by lower EBITDA before one-time items after leases and higher depreciation, which is partially mitigated by the positive impact of the financial result and lower taxation.
Regarding CAPEX in 2020, it reached HRK 86.1m out of which HRK 28.8m is invested in content capitalization, while HRK 21.3m was invested in construction of optical infrastructure, access network and network core and HRK 17.5m in customer equipment for provision of services to residential and business customers. On the 2020 level, investments in IT systems amounts HRK 17.6m while HRK 0.9m is tied up in general investments.