During 9M 2025, Telekom Slovenije recorded revenue growth of 3% YoY, EBITDA increase of 4%, and a net income of EUR 47.9m, up 3% YoY.
Starting off at the top of the P&L, Telekom Slovenije recorded revenue of EUR 546.5m during 9M 2025, growing by 3% YoY. The growth was driven by three primary factors. Firstly, the growth in the number of mobile & fixed users, with mobile end-user revenue higher due to a higher number of users in Slovenia and Kosovo. In fact, the Group recorded 2.16m of retail mobile users as of 30 September 2025, up 2% YoY. Fixed segment revenue was also up, due to more broadband users, with the total number of connections growing by 4% YoY to 337.5k. Secondly, higher sales of IT services and digital services, but this also led to higher subcontractor costs, related to higher IT services revenue. Thirdly, higher sales of merchandise, especially via Slovenian subsidiaries.
Moving on, OPEX grew by 4% YoY, 1 p.p. higher than revenue, pressuring margins. Total OPEX amounted to EUR 493.7m during 9M 2025. By categories, the largest increase came from a one-off item, with the IPKO fire incident recording EUR 6.27m of write-offs and impairments, leading to a 93% increase YoY in other op. expenses. Labour costs also increased by 5%, or by EUR 4.4m to EUR 100.5m during the period, driven by wage adjustments and higher headcount (+31 employees YoY, to 3,245). Costs of services also grew, by 2% YoY to EUR 165.2m, due to higher subcontractor costs (EUR 25.1m vs. EUR 19.2m during 9M 2024), and due to increased IT services revenue. They also grew due to minor increases in maintenance, as well as a slight rise in leased network/platform costs. Next up, depreciation also grew, by 4% YoY to EUR 129.1m. This is due to continued investments & new assets coming online, and was partially offset by a EUR -1.9m in lower depreciation from copper/fiber adjustments. Lastly, COGS also grew by 2% YoY to EUR 68.4m, due to higher merchandise sales. On the other hand, material expenses declined by 14% YoY to EUR 14.4m, possibly due to energy price normalization or efficiency measures.
Telekom Slovenije key financials (9M 2025 vs. 9M 2024, EURm)
Source: Telekom Slovenije, InterCapital Research
Together, this led to an EBITDA of EUR 192.7m, up 4% YoY, and an EBITDA margin of 35.3%, up 0.4 p.p. YoY. EBITDA was positively influenced by higher sales revenue, lower depreciation, and insurance compensation income (EUR 5.3m) from the IPKO fire incident. On the other hand, EBITDA growth was offset by higher overall OPEX and costs linked to the one-off fire incident mentioned above. In terms of the net financial result, it was negative at EUR 10.6m, a 7% improvement YoY. Financial income declined by 19% YoY to EUR 1.7m, while financial costs declined by 9% YoY to EUR 12.3m. For the financial income side, while not detailed, the decline could be attributed to lower interest income from deposits and fewer FX gains. Like with fin. income, fin. costs change drivers are not explained, but the likely contributors include reduced net fin. debt (EUR 372.9m vs. EUR 378.4m at YE 2024), which could have been refinanced at lower rates, as well as fewer FX losses.
All taken together, this led to a net income of EUR 47.9m for the Group, a 3% increase YoY, and representing a net income margin of 8.76%, down 2 bps YoY. The revenue growth was driven by higher EBITDA, better net fin. result, insurance compensation from the IPKO fire incident. On the other hand, growth was stifled due to IPKO fire impairments & write-offs, higher labour costs, higher depreciation, and slightly higher taxes.
In terms of investments, they amounted to EUR 135.4m, down 14% YoY. In Telekom Slovenije (Slovenian parent company), investments dropped by 7% YoY to EUR 102.3m, but other Slovenian companies recorded CAPEX of EUR 17.2m, up over 4x YoY, leading to a net positive investment growth of EUR 3.5m in Slovenia. The largest decrease, however, came from IPKO – Kosovo CAPEX, which declined by 68% YoY to EUR 18.3m. CAPEX focus areas include investments into Fiber-optic broadband rollout, 5G/4G mobile network expansion, ICT and digital service infrastructure, core telecom network modernization, strong activity in Slovenian subsidiaries, incl. investments into construction, ICT, and media. On the other hand, reduced investments in Kosovo came due to the end of the previous heavy investment cycles there, as well as the aforementioned IPKO fire incident.