In 2019, Optima Telekom recorded a decrease in sales of 3%, a flat EBITDA and a net profit of HRK 12.5m.
As Optima Telekom published their preliminary 2019 results, we are bringing you key takes from it. According to the report, sales amounted to HRK 524.6m, representing a 3% decrease YoY. Such a decrease came mostly on the back of lower revenue from public voice service, which was partly offset by higher multimedia and data revenues. A decrease in revenues from public voice service of 11.0% YoY represents a general trend on the global level through a longer time period.
Compared to last year, revenues from interconnection record a slight decrease of 0.4% primarily due to lower income from termination. Revenues from internet services are lower by 2.7% YoY, mostly as a result of a user decrease and prominent competitors’ activities.
The realization of data income in 2019 records an increase of 3.5% YoY, while in Q4 there was a significant rise of 17.6%. Meanwhile, Multimedia revenues recorded an increase of 3.9%. The company notes that data services income and multimedia income are in the continuous focus of the company’s business.
When observing operating expenses, they amounted to HRK 484.57m, representing a decrease of 5% YoY. Such a decrease could be attributed to lower material costs by HRK 25.1m as a result of cost optimization.
The consolidated EBITDA before special items after leases amounted to HRK 132.3m, remaining relatively flat. Such a result came on the back of above-mentioned cost optimization, which was offset by lower sales. Such a result puts the EBITDA margin at 24.9% (+0.7 p.p. YoY). Meanwhile operating profit stood at HRK 46m, showing an increase of 27.4% YoY.
Net financial result amounted to HRK -28.68m, compared to HRK -29.96m in 2018. The lower result could mostly be attributed to lower FX gains.
In 2019, net profit amounted to HRK 12.46m, representing an increase by HRK 9.1m, primarily as a result of increased business cost efficiency, which is supported by a lower amortization and a decrease in asset value.
Turning our attention to CAPEX, in 2019 HRK 89m was invested, of which HRK 42.5m was invested in expansion of customer services. HRK 26.1m was invested in the development of an access optical network, expanding collocation network, user equipment for providing IPTV and internet services to residential users, as well as the equipment for connecting business users. The remaining HRK 20.3m was invested in core network.
