In 2018, Telekom Slovenije recorded flat sales revenues YoY, increase in EBITDA of 10% and net income of EUR 33.3m. The company also proposed EUR 4.5 DPS, translating to a dividend yield of 7%.

As Telekom Slovenije published their 2018 results, we are bringing you some key takes from the report. According to it, Telekom Slovenije recorded sales revenues of EUR 715m, which is flat compared to 2017.

Compared to 2017, the company increased their revenues of fixed and IT services by 8%, while they also increased revenues in the field of energy and insurance and financial services. Total operating revenue amounted to EUR  731.2m, which is an increase of 0.7% compared to 2017 and 3% less than planned.

Operating Revenues (2015 – 2019e) (EUR m)

When observing the company’s EBITDA, it increased by 10% YoY, amounting to EUR 185.5m. Meanwhile, Net income amounted to EUR 33.3m, which is an increase by EUR 24.3m (+269.3%). Increase in both EBITDA and net income could be attributed to a low 2017 base as Telekom Slovenije in 2017 recorded provisions for lawsuits of EUR 25m. Besides that, the regular part of the business did not shine in 2017, which could be seen when observing their 2017 adjusted EBITDA which decreased by 4.4%.

In 2018 Telekom Slovenije has ended its court dispute involving sum of EUR 130m with the competitor T-2 by out-of-court settlement that was finalized in September. The outcome has negatively affected the planned EBITDA and net income.

EBITDA & Net Income (2015 – 2019e) (EUR m)

Investments in 2018 have reached EUR 133.9m. The majority of investments were used for expansion of optical network and further modernization of wireless network in preparation for the 5G.

Note that for 2019, Telekom Slovenije expects to observe operating revenues of EUR 711.9m, EBITDA of 216m and net income of 30.3m. Investments are expected to amount to EUR 211.9m.

Dividend

The supervisory board together with the management board has also proposed a dividend of EUR 4.5 per share. The GSM will take place on 30 August 2019 and the payout ratio amounts to 75%. At the current share price, dividend yield amounts to 7%.