During 9M 2022, Telekom Slovenije’s revenue remained roughly flat, decreasing by 0.3% YoY, EBITDA increased by 0.5%, while the net profit increased by 8.5% YoY, and amounted to EUR 39m.
In the 9M 2022, the sales revenue of Telekom Slovenije amounted to EUR 485.5m, which is a decrease of 0.3% YoY. Breaking the revenue by segments, mobile service revenue increased by 0.6% to EUR 188.8m, primarily due to a higher number of subscribers and prepaid users in Kosovo as a result of activities to attract new users. Revenues on the wholesale market were also up, primarily on the account of higher revenues from international voice services in Kosovo and higher revenues from domestic wholesale services in Slovenia. Telekom Slovenije recorded growth in revenues from financial, eHealth, and insurance services. On the other hand, Fixed-line telephone service revenues were down primarily due to the declining number of traditional telephony connections. Finally, Telekom Slovenije halted the sale of electricity to end users, effective 1 January 2022, which is also reflected in sales revenue.
In terms of the operating expenses, they amounted to EUR 439.2m, a decrease of 1% YoY. Of this, COGS decreased by 3.7% YoY and amounted to EUR 62m. The cost of services decreased by 4.2% and amounted to EUR 151.5m. On the other hand, Labour costs increased by 6.3%, and amounted to EUR 82.6m, while the cost of materials and energy increased by 40.5%, and amounted to EUR 16.3m. EBITDA remained roughly the same, at EUR 174.8m, an increase of 0.5%. However, as noted by the Company, if the energy prices remained the same as in 2021, the EBITDA would be up 3% YoY. EBITDA margin increased slightly, by 0.3 p.p. to 36%. Finally, the net income amounted to EUR 39m, an increase of 8.5% YoY.
Telekom Slovenije key financials (9M 2021 vs. 9M 2022, EURm)
Source: Telekom Slovenije, InterCapital Research
Telekom Slovenije also commented on the impact of the war in Ukraine on its operations, as well as its Strategic Business Plan for the 2022 – 2026 period.
Starting off with the impact of the war, Telekom Slovenije said that the Group’s operations are not directly linked to the Russian and Ukrainian markets. Because of this, they assess that the war will not have any significant direct impact on the Group’s cash flows and financial sources. There are, however, affected by indirect effects such as rising energy prices. Furthermore, they are exposed to specific risks in the supply chain, as there may be shortages of certain materials for the manufacture of devices and other technical products, which may also result in delivery delays or higher prices.
Regarding their Strategic Business Plan, Telekom Slovenije outlined 8 key objectives for the period. These include the following: to be the leader in user experience, digitalization of operations, growth in ICT services, stabilization of the level of revenues from the core activity in Slovenia, consolidation on individual markets, optimal employee structure, financial stability, and the optimization of all types of costs, and finally, creating a sustainable future.
If you would like to read more, please refer to the full report here.
