During H1 2024, Telekom Slovenije recorded revenue growth of 4% YoY, an EBITDA increase of 4%, and a net income of EUR 29.6m, a 25% increase YoY.
Last week, Telekom Slovenije published its H1 2024 results, and in this overview we’re bringing you the highlights. Starting off with the revenue, during H1 2024, it amounted to EUR 346.6m, growing by 4% YoY. This increase came as a result of the growth in the number of users and higher sales of IT merchandise and services, also supported by higher revenues from financial, eHealth, and insurance services, and an increase in the revenues on the wholesale market. In fact, as of 30 June 2024, Telekom Slovenije had 4% of 73k more retail mobile users and 2% more fixed retail broadband connections YoY.
In terms of geography, Telekom Slovenije in Slovenia recorded a revenue increase of 4% YoY, while other companies in Slovenia recorded a 17% decrease YoY. Meanwhile, IPKO – Kosovo recorded a 9% increase YoY, to EUR 43.9m, while other companies abroad remained roughly the same YoY.
Moving on to operating expenses, in total they amounted to EUR 311.3m, growing by 3% YoY. The increase came as a result of higher labour costs, mainly due to the change in the method used for the interim calculation of the business and work performance costs. Previously, the Group recorded these costs when they were made or in the final annual report, but now it has normalized this effect for quarterly reporting.
As a result of the faster revenue than OPEX growth, the EBITDA also improved, growing by 4% YoY to EUR 121.4m. This would imply an EBITDA margin of 35%, remaining roughly unchanged YoY. In terms of the net financial result, it remained negative at EUR -7.2m, but it did record a slight improvement of 6% YoY, mainly as a result of higher financial income, which outpaced financial expenses growth.
Due to the above-mentioned developments, Telekom Slovenije recorded a net income of EUR 29.6m, an increase of 25% YoY, which would imply a net income margin of 8.5%, an increase of 1.45 p.p. YoY.
Telekom Slovenije key financials (H1 2024 vs. H1 2023, EURm)
Source: Telekom Slovenije, InterCapital Research
In terms of investments, Telekom Slovenije invested a total of EUR 79.7m in H1 2024, a decrease of 4% YoY. While investments in Telekom Slovenije in Slovenia did increase by 10% YoY to EUR 68.5m, other companies in Slovenia, IPKO – Kosovo, and other companies abroad all recorded decreases in investments, of 74%, 26%, and 66%, respectively.
