Telekom Slovenije Q1 2020 Results

In Q1, the company recorded a decrease in sales of 2% YoY, flat EBITDA and an increase in net profit of 12%.

Earlier today Telekom Slovenije published their Q1 report. The Group was affected in the second half of March 2020 by events linked to measures to prevent the spread of Covid-19. During the first weeks of the crisis, measures adopted at the national level affected the company’s net sales revenue in the retail segment (primarily in the mobile and fixed segment, IT services and merchandise) and in the wholesale segment (international operations), as well as the revenues of certain Group subsidiaries due to the stagnation of transactions on the market.

During this period Telekom Slovenije faced high network loads and an increase in traffic in voice, data and video services, with traffic rates 50% above regular levels. The Group also notes that between 13 March and 23 April sales centers were closes. During the period users switched to digital channels, with the sales of products through the e-commerce growing by 38 % YoY.

In Q1, Telekom Slovenije recorded a decrease in sales of 2% YoY, amounting to EUR 168.6m. The mentioned decrease could be attributed to lower revenues in the mobile and fixed segments of the end-user market (mainly due to lower revenues from mobile merchandise, IT services and licenses). Other revenues, revenues from other merchandise, new revenue sources and revenues on the wholesale market were all up compared to the to the same period last year. Meanwhile, operating revenues amounted to EUR 173.6m, representing a decrease of 1% YoY.

When observing operating expenses, they amounted to EUR 159.2m, which represents a decrease of 1% YoY. As a result of the above mentioned, EBITDA remained relatively flat, amounting to EUR 56.4m. Such a result puts the EBITDA margin to 33.4% (+0.5 p.p. YoY). According to first estimates, the company notes that the epidemic will negatively affect Group’s EBITDA to the extent of approximately 3%, compared to the 2020 plan. Operating profit in Q1 amounted to EUR 14.5m, representing an increase of 23% YoY.

In the first quarter of 2020, the company recorded a net profit of 11.33m, representing an increase of 12% YoY.

Key objectives of the Telekom Slovenije Group for 2020

Operating revenues – EUR 676.0m

EBITDA – EUR 210.6 m

Net operating profit- EUR 27.5m

CAPEX – EUR 209.7m

Category : Flash News

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