In Q1, the company recorded a decrease in sales of 6%, increase in EBITDA of 8% and an increase in net income of 4%.

As Telekom Slovenije published their Q1 2019 report, we are bringing you key takes from it. According to the report, in Q1, the company observed a decrease of 6% in net sales revenue, which amounted to EUR 172m. The decrease could be attributed to lower revenues from mobile merchandise on the end-user market and on the wholesale market. Note that net sales revenue no longer includes the revenues generated by Blicnet, which was sold in 2018.

When observing the operating expenses, the company recorded EUR 161.0m, a decrease of 7%.

The costs of services incurred by the Group decreased by 13%, amounting to EUR 65.6m. Those costs include the effect of the change in the recognition of costs arising from leases and leased lines under IFRS 16. The costs of telecommunications services decreased by 19%, amounting to EUR 27.2m. Maintenance costs were down due to lower costs associated with the core network and application solutions, while the renewal of insurance contracts resulted in lower insurance costs.

In Q1, Telekom Slovenije reported EBITDA of EUR 56.5m, representing an increase of 8%. EBIT amounted to EUR 11.8m, an increase of 15%.

When observing the company’s net income, it recorded an increase of 4%, amounting to EUR 10.1m

Telekom Slovenije Performance (Q1 2019 vs Q1 2018) (EUR m)

The buyer and the purchase amount are yet to be known.

Intereuropa published that the signing of the Sale and Purchase Agreement in the sale process of 72% of all issued shares of Intereuropa d.d. is envisaged to take place today. Signing is still subject to certain steps and confirmations.

72% of the group’s shares are owned by banks which include SID Banka, NLB, Nova KBM, Gorenjska Banka, SKB and Banka Intesa Sanpaolo. As a reminder, banks became the major shareholders as a result of Intereuropa failing to service their debt.

Note that the buyer and the purchase amount are yet to be known.

As a reminder, Intereuropa has had a couple of sale attempts; first time in the beginning of 2016, but they failed to agree on the key terms of the sale with Czech-Maltese Tuffieh Funds.

In Q1, the Group observed an increase in net banking income of 23.6% and an increase in net income of 30.5%.

As Banca Transilvania published their Q1 2019 report, we are bringing you key takes from the report. According to it, in Q1, the company recorded an increase in net interest income of 38%, amounting to RON 749.4m. Net fee and commission income also observed an increase of 14.4%, amounting to RON 186.7m.

When observing the company’s net banking income, it amounted to RON 988.8m, representing an increase of 23.6%.

TLV Performance (Q1 2019 vs Q1 2018) (RON m)

Moving further down the P&L, operating expenses observed an increase of 27%, amounting to RON 490.1m.

In Q1, Banca Transilvania observed a net income of RON 507.5m, which represents an increase of 30.5%.

Net Income (Q1 2019 vs Q1 2018) (RON m)

Turning our attention to the balance sheet, assets amounted to RON 79.7bn, representing an increase of 2.3%. Of that, net loans make up for 48.5%, amounting to RON 38.6bn (+2.1% YoY).

Total liabilities amounted to RON 71.2bn, representing an increase of 1.6%. Of that deposits to customers make up for 91.73%, amounting to RON 65.28bn (+0.2% YoY). As loans increased and deposits remained relatively flat, L/D ratio increased by 1.1 p.p., amounting to 59.1%, which is still relatively low.