Ljubljana - Telekom Slovenije, the state-owned telecommunications provider, generated EUR 151.2 million in net sales revenue in the first quarter of the year, a decrease of 4% from the same period a year ago, which is attributed to the company quitting electricity retail business. The group's net profit rose by 23% to EUR 12 million.

Releasing the quarterly results, Telekom Slovenije noted it had stopped providing electricity to end users as of 1 January, which was reflected in lower sales revenue. Revenue from international voice services was also somewhat lower.

The group's earnings before interest, taxes, depreciation and amortisation (EBITDA) were up by 2% year-on-year to EUR 56.7 million. The EBITDA-to-sales ratio rose to 37.5%, from 35.5% in the same period last year. Earnings before interest and taxes (EBIT) were up by 15% to EUR 16.1 million.

The group allocated EUR 25.2 million for investments in the first quarter.

For last year, Telekom Slovenije reported a net profit of EUR 37.9 million on EUR 648.2 million in sales revenue.

The management called a shareholders meeting for 16 June, proposing for EUR 22.7 million of the total of EUR 45.2 million in distributable profit to be paid out in dividends at EUR 3.50 gross per share. This is a euro less per share than what the shareholders were paid last year.

The shareholders will also vote on authorising the management for a buy-back plan under which the company could buy own shares over the next 36 months, but the total proportion of such shares should not exceed 5% of the share capital. Own shares could be exchanged for stakes in other companies under the takeover strategy or sold to a strategic partner or on the organised market but the latter should not be the sole purpose.