Telekom Slovenije delivered a solid start to the year, posting Q1 2025 revenue growth of 2% YoY, a 4% increase in EBITDA, and a net profit of EUR 14.3m – an 18% improvement compared to the same period in 2024.

Starting at the top of the P&L, the Group generated EUR 171.7m in sales, up 2% YoY. This growth was driven primarily by an expanding user base and increased sales of IT equipment and services. Additional support came from stronger performance in financial, eHealth, and eCommerce services.

Retail mobile user numbers rose 4% YoY to 1.9m, while fixed broadband and TV connections also climbed 4% to 317.4k.

Breaking down revenue by business segments:

• Mobile end-user revenue declined 0.4% YoY to EUR 64.4m, mainly due to weaker sales of goods.
• Fixed end-user revenue grew 7.2% YoY to EUR 57.9m, benefiting from both user growth and robust IT-related sales.
• Wholesale revenue (domestic and international) decreased 5.6% YoY to EUR 39.7m.
• Additional services and Other revenue increased by 1.9% and 19.1% respectively, with notable contributions from financial services, eHealth, insurance, and eCommerce.

Telekom Slovenije revenue composition breakdown (Q1 2025 vs Q1 2024, EURm)

Source: Telekom Slovenije, InterCapital Research

Moving on, operating expenses totaled EUR 153.8m, a 1.2% YoY increase, largely due to a 3.1% rise in depreciation and amortization, which reached EUR 42.6m. Other cost categories showed favorable trends:

• Cost of services remained flat at EUR 50m.
• Labor costs fell 1.7% to EUR 31m.
• COGS decreased 2.2% to EUR 21.4m.
• Materials and energy costs dropped 7.8% to EUR 5.2m.

Therefore, EBITDA came in at EUR 61.8m, up 4% YoY, with the EBITDA margin improving by 0.7 p.p. to 36%. The net financial result remained negative at EUR 3.6m, with minimal YoY change.

As a result, net profit reached EUR 14.3m, marking an 18% YoY increase and yielding a net margin of 8.3% (+1.1 p.p. YoY).

Telekom Slovenije key financials (Q1 2025 vs Q1 2024, EURm)

Source: Telekom Slovenije, InterCapital Research

In terms of CAPEX, it amounted to EUR 38.6m in Q1 2025, decreasing by 16% YOY. Breaking this down, investment into Telekom Slovenije (Slovenia) amounted to EUR 34.7m, decreasing 23%, while investments into other companies in Slovenia increased by 19% to EUR 1.7m. Investments in Kosovo also increased by 13% to EUR 1.9m.

For 2025, the Group set a target of EUR 726.2m in sales, EUR 248.9m in EBITDA, EUR 53.6m in net profit, and total investments of EUR 218.4m. Annualizing Q1 performance suggests that revenue and CAPEX would need to pick up pace to meet guidance. EBITDA appears slightly below target on a run-rate basis, while net profit is on track to exceed full-year projections if the current momentum continues. However, this linear extrapolation does not account for the seasonality of the Company’s business activity and does not reflect the expected outcomes.