In Q1 2019, the company observed an increase in operating revenues of 2% YoY, an increase in EBITDA of 16.3% and a net loss of HRK 0.55m (-77%).
As Optima Telekom published their Q1 2019 report, we are bringing you the key takes from it. According to the report, in Q1, the company observed an increase in operating revenues of 2%, amounting to HRK 136.7m. The increase in revenues could mostly be attributed to a rise in interconnections by 23.9% which is a consequence of the increased volume of low-profit international transit. The company also observed a slight increase in revenues from multimedia of 2.9%.
On the other hand, Optima Telekom recorded a decrease in revenues from public voice services of 10.5%, which is the second largest source of revenue for the company. However, note that this is in line with the global trend of decreasing use of the public voice service.
When observing the company’s EBITDA (before one time items after lease), it amounted to HRK 28.6m, which represents an increase of 16.3% YoY. Note that this EBITDA represents an operational result which is neutralized with IFRS 16 effect.
Going further down the P&L, the company reported an increase in EBIT by HRK 4.4m (+117%), amounting to HRK 7.8m. Such an increase in EBIT could be attributed to both above-mentioned increase in sales revenue and a decrease in operating expenses of 1.5%.
Despite the positive contribution from the operating result in Q1 2019, Optima Telekom recorded a net loss of HRK -0.55m, which represents a reduction in loss of 77%. It is also noteworthy that the company’s capex in Q1 amounted to HRK 29.7m. Of that, HRK 15.2m was invested in expanding the customer service.
Best Performing Share within CROBEX in Q1
In Q1, Optima Telekom’s share price increased by 68.6%, making it the best performing share withing the CROBEX index. As of today, the company’s share price increased by 64.5% YTD. Note that the growth did not only come as a result of improved results, but also due to expectations that HT will have to sell the company by 2021, with the process required to start in 2020.