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Telekom Slovenije Reports H1, Buys Netkom

Telekom Slovenia Group announces good first half-year business results, acquires cable operator

August 29, 2008

2 Min Read

LJUBLJANA, Slovenia -- The business results of Telekom Slovenije and its subsidiaries for the first six months of this year are encouraging. In that period Telekom Slovenia Group's revenues amounted to 416.4 million euro, which is nine percent more than in the same period last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 14 percent amounting to 164.1 million euro. Earnings before interest and taxes (EBIT) increased by the same percentage, amounting to 73.3 million euro. Net profit increased by 5 percent amounting to 48.5 million euro. The half-year business results were inspected and approved by the supervisory board of the company.

In step with the general trends on the market of electronic communications, in this period the operations of Telekom Slovenia Group were characterized by an increase in broadband and mobile connections and a decrease in classical land line telephony connections. The increase in the number of broadband connections within the Group was 41 percent higher than it was in the same period last year. What most contributed to that, was the increase in the number of connections in subsidiaries abroad, where the number increased by almost 300 percent. At the end of June, the Group had just over 270 thousand broadband connections in Slovenia, and over 94 thousand in Southeastern Europe, which is altogether more than 365 thousand connections. The total number of land line and mobile telephony connections increased by eight percent amounting to 2,213,152. The startup of mobile telephony in Kosovo, where Ipko managed to get almost 274 thousand users, was what contributed the most to such a strong growth.

In a separate release:

LJUBLJANA, Slovenia -- Telekom Slovenije, d.d., acquired Netkom in the Republika Srpska region of Bosnia and Herzegovina through its subsidiary Aneks, d.o.o., from Banja Luka. Netkom is a cable television operator with its own network and approximately 6,500 subscribers. By purchasing Netkom with plans to merge it to Aneks, d.o.o., by the end of the year, Telekom Slovenije acquired infrastructure, existing subscribers and a license to conduct cable television services, with secured copyright for broadcasting TV channels. The acquisition and merger with Aneks will represent the first step to expansion of its own network to the end users and providing an end-to-end offering in the field of electronic communications, which includes telephony, Internet and multimedia services, including television. The value of the investment is EUR 1.3 million. Last year the company had a net income of EUR 255,236, with EBITDA of EUR 158,553.

By acquiring Netkom, Aneks made the first step towards the expansion of its own network to the end users, because it is aware that this is the only approach of competing in the telecommunication market of Republika Srpska. Aneks is accelerating the preparations of expanding its own network in a few other cities in BiH.

Telekom Slovenije

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