Telekom Slovenije published their H1 2019 results yesterday, showing a 5.4% YoY decrease in sales, while EBITDA grew 11.3% YoY & net profit was up 34.7% YoY to EUR 19.6m.

Telekom Slovenije published their H1 2019 results yesterday, showing a 5.4% YoY decrease in sales which amounted to EUR 340.6m. However, one should note that revenues in 2019 no longer include the revenues generated by Blicnet, which was sold in 2018. Meanwhile, revenues from mobile merchandise on the end-user market and revenues from the fixed segment of the end-user market were down in 2019, primarily due to the completion of the project to set up an electronic toll collection system in 2018, and down were also revenues on the wholesale market.

OPEX are down 7.8% YoY as the introduction of the IFRS 16 played an important role in the company’s result. Due to the change in the recognition of costs, the costs of services incurred by the Telekom Slovenije Group were down by 15% or EUR 23.3m. However, one should also note that all expenses were down (except D&A). As a result, EBITDA went up 11.3% YoY, amounting to EUR 112.3m.

Due to the above mentioned, the bottom line improved by 34.7% YoY to EUR 19.6m, despite the deterioration of the company’s net financial loss which doubled when compared to H1 2018 and ended at HRK -2.5m (+137% YoY).

Turning our attention to the balance sheet, the company’s net debt is up 3% since the beginning of the year and now amounts to EUR 378.6m. However, as this translates to 1.92x net debt/EBITDA one can still consider the company reasonably indebted.

One should also note that, in accordance with Telekom Slovenije’s strategy for the period 2019–2023, the company began activities to sell its 100% participating interest in IPKO Telecommunications LLC in Kosovo. However, further detail regarding the sale were not given.