Telekom Slovenije published their Q1 2021 results yesterday, showing -6% YoY decrease in sales, EBITDA decrease of -3% and a net profit of EUR 10m (-14%).
In Q1 2021 Telekom Slovenije posted sales in the amount of EUR 156.8m, marking a 6% YoY decrease. The Mobile services in end-customer market segment recorded a 7.1% YoY increase with sales amounting to 61.7m. The came primarily due to higher revenues from mobile merchandise. Note that the segment was able to achieve an increase in sales despite experiencing negative effects on revenues from roaming due to the ongoing pandemic and measures taken to tackle it. Sales in the Fixed-line telephone services on end-customer market segment fell -15.5% YoY to EUR 51.9m primarily due to lower sales of IT licences and due to a decline in revenues from traditional voice telephony, as the result of the falling number of traditional connections and their replacement with mobile and IP telephony. Meanwhile the wholesale market segment saw sales decreasing by -8.1% YoY to EUR 35.8m, primarily due to lower revenues from international voice services and the roaming of foreign users in Telekom Slovenije’s mobile networks. Additional services segment, which includes revenues from financial services, energy, eHealth services and insurance,posted flattish sales which amounted to EUR 1.9m (-0.4% YoY). Finally, other revenues and merchandise segment sales were down -20.3% to EUR 5.4m.
EBITDA was down 3% YoY, amounting to EUR 55.7m. The decrease was due to lower sales as operating expenses were down as well. When observing OPEX, the largest decrease was recorded by cost services which fell by 23% YoY as lower roaming revenue also resulted in lower costs of telecommunication services. Also, the costs of services of sub-contractors were lower (-63.7% YoY), primarily due to lower sales of IT licences. However, note that if one was to exclude one-off effects in 2020, EBITDA would be up 3% YoY.
Below the operating line, the Group’s net financial result remained flattish by declining -1% YoY. As a result of the abovementioned, Telekom Slovenije’s bottom line amounted to EUR 9.7m (-14.3%). If one excluded one-off effects in 2020, net profit would have been up 8% YoY.
Telekom Slovenije also released their dividend proposal yesterday, which amounted to EUR 4 per share. Note that when compared to yesterday’s closing price this gives a dividend yield of 7.2%. Meanwhile ex-date is set on 30 July 2021. To read more about Telekom Slovenije’s dividend proposal click here.
Telekom Slovenije Key Financials (EUR 000)