During Q1 2023, Telekom Slovenije’s revenue increased by 8%, EBITDA decreased by 4.5%, while the net profit decreased by 31.7% YoY and amounted to EUR 8.2m.

In Q1 2023, the sales revenue of Telekom Slovenije amounted to EUR 163.2m, which is an increase of 8% YoY. Breaking the revenue by segment, revenues were up in the mobile segment of the end-user market mainly due to an increased number of subscribers and prepaid users at IPKO in Kosovo. Better results at IPKO resulted from intensive marketing activities to attract new customers. Telekom Slovenije is recording growth in revenues from financial, eHealth, and insurance services. Revenues from the wholesale market were also up, further amplified by a higher top line achieved by subsidiaries. On the other hand, Fixed-line telephone service revenues were down primarily due to the declining number of traditional telephony connections

In terms of the operating expenses, they amounted to EUR 150.2m, an increase of 10% YoY. The growth in OPEX was driven by basically each of its components. Cost of services, which make up c. one-third of total OPEX, increased by 9.1% and amounted to EUR 48.7m, COGS increased by 11.7% and amounted to EUR 22.3m, while Labour costs noted an increase of 6.2% YoY.

Overall, the growth in the top line was not enough to compensate for higher costs during Q1 2023. This resulted in a slightly lower EBITDA margin of 33.2% (down 4.3 p.p. YoY). Finally, the net income amounted to EUR 8.2m, a decrease of 31.7% compared to Q1 2022 (EUR 12m).

Telekom Slovenije key financials (Q1 2023 vs. Q1 2022, EURm)

Source: Telekom Slovenije, InterCapital Research

Also, Telekom Slovenije published its key (financial) objectives for 2023: Operating revenues of EUR 860m, EBITDA of EUR 206m, Net profit of EUR 20m and Investments of EUR 205.

Telekom Slovenije key financials (2023 expected vs. FY 2022, EURm)

Source: Telekom Slovenije, InterCapital Research