The figures are available in the unaudited annual report that the company published on the website of the Ljubljana Stock Exchange a day after it was reviewed by the supervisory board. The management is currently presenting further details at a press conference.

"Fierce competition, regulation and relentless macroeconomic conditions demonstrate that generating revenues and ensuring the necessary profits has also in the electronic communications market become increasingly difficult to achieve," the management said in the press release.

Therefore the group's business plan for 2012 with the projection until 2016 is focused on the search for new sources of revenue, and in the short-term, mainly on cost cutting, the release reads, pointing to the effects of restructuring reflected in the operating results for 2011, with a similar trend projected for 2012 due to the changes planned.

The group saw EBITDA rose by 3% last year to EUR 255.6m with earnings before interest and taxes (EBIT) at EUR 63.25m, which compares to EUR 178.5m in operating loss due to substantial write-downs on investments.

For this year, Telekom Slovenije plans EUR 55m in profit with EBITDA of up to EUR 280m, and capital expenditures of EUR 120-135m. These were down to EUR 92m in 2011 from EUR 113.6m in 2010. At the same time the group managed to reduce its financial debt by 23% to EUR 388.6m.

According to the press release, the group is continuing with its transition from being a provider of mainly infrastructure services to become a provider of the most demanding IT and multimedia services. Part of these efforts is the project of a TV channel Siol TV, which was endorsed by the supervisors on Wednesday.

The management of the majority state-owned company also said that Telekom's comparative financial statements for 2010 had been adjusted following last year's acquisition of the mobile arm Mobitel so as if the two companies have been operating together in the comparative period.

In the second half of 2011 Telekom verified the fair value of its investments in subsidiaries, establishing that the recoverable amount of investments in some of the subsidiaries has fallen below their book value.

The company carried out a downward adjustment of its financial investments in the companies One and Primo Communications for the difference between the book value and recoverable amount of the investments, which amounts to EUR 6.5m.