In H1 2022, Telekom Slovenije recorded a sales revenue decrease of 1% YoY, an EBITDA decrease of 1.3% YoY, and a net profit of EUR 23.4m, an increase of 9.5% YoY.
Starting with the sales revenue, it amounted to EUR 314.2m, a decrease of 1% YoY. Telekom Slovenije recorded growth in financial services, eHealth service, and insurance segments. In Slovenia, Telekom Slovenije recorded a sales revenue of EUR 280.3m, representing a decrease of 3% YoY, while other companies in Slovenia recorded a sales revenue of EUR 36.5m, a decrease of 96% YoY. Meanwhile, internationally, Telekom Slovenije’s subsidiaries recorded higher market revenues, with IPKO Kosovo’s revenue amounting to EUR 36.5m, an increase of 16% YoY, while other companies abroad increased their revenue by 1% YoY. This was driven by the increase in revenues from international voice services.
On the other hand, revenues from the mobile segment of the end-user market were down due to the optimization of subscribers whose basic subscription fee includes an increasing number of services. Revenues from the fixed segment of the end-user market were down primarily due to a declining number of traditional connections and lower revenues from the sale of fixed merchandise, resulting in lower costs. Furthermore, Telekom Slovenije stopped selling electricity to end users (starting 1 January 2022), which can be seen in the revenues.
Operating expenses amounted to EUR 285.4m, a decrease of 2% YoY. Breaking this down further, COGS decreased by 4% YoY, and amounted to EUR 40.3m, costs of materials and energy increased by 37.8% YoY, and amounted to EUR 10.6m, cost of services decreased by 4.7%, and amounted to EUR 98.6m, while labour costs increased by 6.6% YoY, and amounted to EUR 53.3m. EBITDA amounted to EUR 112.2m, a decrease of 1.3% YoY, mainly as a result of higher energy and electricity prices. This would also mean that the EBITDA margin amounted to 35.7%, a reduction of 0.1 p.p. YoY.
Moving on, the net financial result amounted to a negative EUR 3.3m, a 5.4% improvement, mainly as a result of lower financial expenses. Income tax remained roughly the same YoY, while the net income amounted to EUR 23.4m, an increase of 9.6% YoY. Total investments amounted to EUR 77m, a decrease of 48% YoY, mainly as a result of lower investments in Telekom Slovenije, a reduction of 60%. This is due to the fact that in 2021, the acquisition of the radio frequency spectrum in the amount of EUR 52.1m was made, increasing the investment in 2021.
Telekom Slovenije key financials (H1 2022 vs. H1 2021, EURm)
The Company also commented on the impact of the Russian-Ukrainian conflict on its operations. Telekom Slovenije is not directly linked to the Russian and Ukrainian markets. Due to this, they assess that the conflict will not have a significant impact on the Company’s cash flows and financial sources. Indirectly, however, the Company is impacted by rising energy and electricity prices, as well as some risks in the supply chain. The Company is monitoring the situation closely. At the same time, they commented on the increased risks in the area of cyber security and said they are focused on ensuring a higher level of security, reliability, and confidence, in the management of the said risks.
Finally, Telekom Slovenije also outlined its key objectives for 2022. According to the Company, they estimate an operating revenue of EUR 660.6m, an EBITDA of EUR 211.2m, a net profit of EUR 27.9m, and investments in the total amount of EUR 203.1m.