Telekom Slovenije strategic plan in 2022 is to generate operating revenues of EUR 660.6 m, EBITDA of EUR 211.2 m and bottom line of EUR 27.9 m.
Today, Telekom Slovenije adopts a strategic business plan for the period 2022-2026. The plan details implementing a new ESG model and sustainability in operations, expected market position as a market leader taking into consideration competitors aggressive pricing strategies and expected financial stability.
Group expects a drop in revenues from basic telecommunication services. Company highlights their highest market share in terms of mobile and IP TV services and second highest market share in terms of broadband, pay T and IP telephony services, but emphasizes competitor’s growth in market share due to aggressive pricing policy – which Telekom Slovenije cannot follow due to regulatory limitations. The same market situation applies for IPKO in Kosovo, where the company faces aggressive pricing strategies, while IPKO also has the highest market share and developed a strong leader brand in Kosovo.
With all said, a few main strategic objectives for Telekom Slovenije are to ensure leading market position through superior consumer experience and therefore, premium prices, stabilization of revenues from core activities in Slovenia, digitalization of operations which will improve operational efficiency and financial stability in the future period trough optimization of cost structure.
Telekom Slovenije’s plan for 2022 is to generate operating revenues of EUR 660.6 m, EBITDA of EUR 211.2 m and net profit of 27.9 m. Company expects future investments in 2022 to amount to EUR 203.1 m.
As of the end of November 2021, the NAV of Croatian UCITS funds stood at HRK 21.57bn (21.5% YoY).
As the assets managers play an important role in the Croatian capital market, we decided to bring you an overview of how well they performed since the beginning of 2021. The NAV of all funds in November 2021 amounted to HRK 21.57bn, which marks the first decrease in the funds experienced in the last 20 months (a decrease of -0.57% MoM).
This decrease is mainly driven by the decline in cash as well as domestic securities and deposits, which decreased by -5.67% (or HRK -204.94m), and -0.8% (or HRK 87.8m), respectively. The main drivers of the decrease in domestic securities and deposits were shares as well as deposits, which decreased by -2.34% (or HRK 14.8m) and -3% (or HRK 47.94m), respectively. At the same time, foreign securities and deposits increased by 1.18% (or HRK 90m) to HRK 7.71bn.
Looking over to the asset composition of the Croatian UCITS funds, investment funds have noted an increase in AUM of 2.9%, and currently hold 6.9% of total AUM, which is higher than the 10-year average of 3%.
We would also like to note that domestic shares account for 25.1% of total equity holdings. Domestic equity has thus far in 2021 seen a 22% YTD increase, while foreign equity increased by 48.9% YTD.
Bond holdings still continue their trend as the largest asset class of Croatian UCITS funds, accounting for 56.7% of total AUM. This represents a decrease of 5.5 p.p. YTD. This is due to the increase in other asset classes such as investment funds, shares, and loans on the money market. Bonds did experience a 6.6% (or HRK 777.3m) YTD increase in its assets, amounting to HRK 12.5bn.
Total Assets of All Croatian UCITS funds (2015 – October 2021) (HRKm)
Net contributions in November amounted to HRK 10.1m, reaching a total of HRK 3.23bn YTD. When comparing it with 2020 when net contributions in the 11 months of 2020 were at HRK 5.41bn, an improvement can be seen in 2021.
As of the end of November 2021, the NAV of Croatian Mandatory Pension funds amounted to HRK 130.9bn, representing a 10.7% increase YoY.
Today we bring you an overview of the performance of Croatian pension funds in November 2021, something that is worth considering when looking at the role they play in the Croatian capital market.
The NAV of Croatian pension funds has experienced a continual increase for the 20th consecutive month, and as of the end of November 2021 stood at HRK 130.9bn (+10.7% YoY or 12.7bn). Likewise, on a YTD basis, NAV is up by 10%, while on a MoM basis, NAV of mandatory pension funds is up by 0.3%. We would also like to note that the net contributions in November amounted to HRK 634.7m, reaching a total of HRK 6.78bn YTD.
AUM Structure – Mandatory Pension Funds (January 2018 – November 2021), HRK bn
Looking over at the asset composition of the pension funds, bonds still account for the vast majority of assets (62.8%), which as of the end of November amounted to 82.5bn. Compared on a MoM basis, bond holdings experienced a slight increase of 0.3 p.p., (or HRK 341.7m).
Current AUM Structure – Mandatory Pension Funds, November 2021 (%)
Next up, we have shares, which account for 20.3% or HRK 26.7bn, representing a -1.2% decrease MoM (or HRK 322.8m). The decrease came from foreign as well as domestic equity, which decreased by -1.3% (or HRK -154.3m) and -1.1% (or HRK -168.4m), respectively. We would also like to note that domestic equity accounts for 56.1% of total equity holdings. On the other hand, in the bond market, domestic bonds hold the largest share of 94.5% (a decrease of 0.1 p.p. MoM).