Telekom Slovenije published their FY 2020 results in Friday, showing a 3% YoY decrease in sales, a 2% YoY decrease in EBITDA and a surging net profit of EUR 24.9m (from EUR 0.9m).
In 2020, Telekom Slovenije recorded sales in the amount of EUR 647.2m, representing a 2.7% YoY decrease. The decrease in sales came as a result of measures taken to battle the COVID-19 pandemic (the closure of Telekom centres, the lockdown and restrictions on the crossing of national borders). This also resulted in lower revenues from roaming of users in the networks of foreign operators and from roaming by foreign users in our mobile networks, and lower revenues of subsidiaries outside of the telecommunications activity. Furthermore, revenues also declined due to the optimisation of subscribers who have an increasing number of services included in their monthly subscription fee and the expected drop in revenues from traditional fixed telephony due to substitution with mobile and IP telephony. On the flip side, the proportion of new revenue sources accounted for by eHealth, energy and insurance services was up relative to 2019. Revenues from e-commerce services were up by 55% relative to the previous year. Revenues in Kosovo saw a decline due to the effects of the COVID-19 epidemic and the inability of ex-pats to return home. Excluding the negative effects of the epidemic and taking into account additional measures to mitigate the negative effects thereof, the Telekom Slovenije Group’s operating revenues would have been EUR 22.9m higher and exceeded planned revenues by 1%.
EBITDA fell -2.4% YoY, amounting to EUR 209.9m. The decrease in EBITDA came due to lower sales as all but two expenses recorded a decrease. Namely, costs of goods sold, and costs of materials sold in connection with the Online Store were up by 4% YoY, meanwhile labour costs were up by 1% YoY due to the payment of a crisis allowance. Overall operating expenses were down by -2.8% YoY.
Finally, net profit soared from just EUR 0.9m in 2019 to EUR 24.9m in 2020. If one would exclude the estimated negative effect of the coronavirus and measures to mitigate the negative effects thereof, net profit would have amounted to EUR 32.8m. Note that the surge in net profit occurred due to a negative impact that the decision of the International Court of Arbitration regarding the 34% participating interest in Antenna TV had on the 2019 net profit. As a reminder, Telekom Slovenije had to pay EUR 17.6m after an arbitrage procedure held between Telekom Slovenije and European media investment company Antenna Group was held to determine the purchase fee amount in exercising the put option by Antenna Group for the sale of a 34% share in Antenna TV SL to Telekom Slovenije.
CAPEX wise, Telekom Slovenije invested EUR 173m during 2020, marking a 6% YoY decrease. The majority of investments in 2020 were earmarked for the expansion of the fiber optic access network, the modernization of the mobile network, the establishment of the first national fifth generation (5G) mobile network, and for the development of new services and the further optimization of operations.
Telekom Slovenije Key Financials (EURm)
Dividend Proposal
Along with the FY 2020 results, Telekom Slovenije also released their dividend proposal which amounted to EUR 4 per share. According to Friday’s closing price this would translate to a dividend yield of 7.6%.
Telekom Slovenije Dividend per Share (EUR) & Dividend Yield (%) (2010 – 2021)
At the current share price, dividend yield is 4.6%.
Luka Koper published a statement announcing that the Management and Supervisory Boards will propose the following allocation of the accumulated profit at the GSM.
Of the net profit, which amounted to EUR 30.64m on 31 December 2020, EUR 14m is to be used for dividend pay-out in the gross value of EUR 1 per share. Such a dividend payment is EUR 0.07 per share lower than the one paid in 2020. At the current price, such a dividend payment translates into a dividend yield of 4.6%. The residual amount of accumulated profit in the amount of EUR 16.64m is to remain unappropriated.
The mentioned profit distribution is subject to approval at the GSM.
Luka Koper Dividend per Share (EUR) & Dividend Yield (%) (2013 – 2021)
At the current share price dividend yield is 5.1%. Ex-date is 1 July 2021.
On Friday, Ericsson Nikola Tesla’s Supervisory Board and Managing Director made a joint proposal to shareholders at the GSM to adopt a decision regarding the dividend payment of HRK 82 per share.
Such a dividend payment implies a dividend yield of 5.1%. Ex-dividend date is 1 July 2021.
The dividend payment is subject to approval at the GMS which will be held on 29 June 2021.
In the graph below, we are bringing you the historical overview of the company’s dividend per share and dividend yield.
Dividend per Share (2013 – 2021) (HRK)
Dividend Yield (2013 – 2021) (%)
To put things into a perspective, the deals account for roughly 11% of the company’s 2020 consolidated sales.
AD Plastik published an announcement on the Zagreb Stock Exchange stating that the Group has sealed new deals with the customer Stellantis in the total value of EUR 17.3m and with an estimated project duration of ten years. Stellantis is one of the largest automotive groups in the world in terms of the number of cars produced, created by merging the FCA Group and PSA Group.
To put things into a perspective, the deals account for roughly 11% of the company’s 2020 consolidated sales.
To read more about AD Plastik, click here.