In H1 2023, Telekom Slovenije recorded revenue growth of 6% YoY, an EBITDA increase of 4%, and a net profit of EUR 23.7m, an increase of 1% YoY.
Starting off with the sales revenue, it amounted to EUR 334.1m, representing an increase of 6% YoY or EUR 19.9m in absolute terms. Breaking this down further, revenues were up in the mobile segment of the end-user market primarily because of the increased number of subscribers and prepaid users at IPKO in Kosovo, which was the result of marketing activities to attract new customers. Higher revenues from mobile subscribers and revenues from mobile merchandise in Slovenia were also recorded, as well as higher revenues on the wholesale market. Furthermore, the Company recorded growth in the areas of financial services, eHealth, insurance services, and IT services and merchandise. In terms of subsidiaries, higher revenues were recorded across all of them.
Moving on to operating expenses, in total they amounted to EUR 301.3m, an increase of 6% YoY, or EUR 15.8m in absolute terms. The largest contribution came from higher costs of materials and energy at EUR 16m (+51% or + EUR 5.4m YoY), followed by higher costs of services at EUR 102.3m (+4%, or + EUR 3.7m YoY), higher COGS at EUR 43m (+7%, or + EUR 2.8m YoY), and finally, higher labour costs at EUR 55.2m (+4%, or + EUR 1.9m YoY).
Because of the faster revenue than OPEX growth, EBITDA amounted to EUR 117.2m, increasing by 4% YoY, or EUR 5m. This would also imply an EBITDA margin of 35.07%, a decrease of 0.63 p.p. YoY. In terms of the net financial result, it amounted to EUR -7.69m, mostly as a result of higher financial expenses, which increased by 102% YoY, or EUR 4.2m, and amounted to EUR 8.3m. On the other hand, the financial income decreased by 21% YoY, or EUR 172k, and amounted to EUR 641k. Finally, the net income amounted to EUR 23.4m, representing an increase of 1% YoY, mostly slowed down by the aforementioned higher financial expense. This would also imply a net income margin of 7.09%, a decrease of 0.35 p.p. YoY.
Telekom Slovenije key financials (H1 2023 vs. H1 2022, EURm)
Source: Telekom Slovenije, InterCapital Research
In terms of investments, Telekom Slovenije invested a total of EUR 83m in H1 2023, representing an increase of 8%, or EUR 5.95m YoY. The largest increase was in the Company’s direct operations in Slovenia, at EUR 62.3m, an increase of 31%, or EUR 14.6m YoY, followed by investments into other companies in Slovenia that are part of the Group, at EUR 14.2m, an increase of 148%, or EUR 8.5m YoY. On the other hand, investments into IPKO – Kosovo decreased by 49%, or EUR 12.3m YoY, to EUR 12.8m.