Ljubljana - Telekom Slovenije, the Slovenian incumbent telco, saw its group net profit in the first half of the year rise by 10% year-on-year to EUR 23.4 million as sales revenue dropped by 1% to EUR 314.2 million.

In a regulatory filing posted with the Ljubljana Stock Exchange on Thursday, the company noted that the lower sales in part reflected the company's quitting electricity retail business as of 1 January 2022.

Revenue was also slightly lower due to the optimisation of subscribers who have an increasing number of services included in their basic subscription fee, and the falling number of traditional voice telephony connections and lower revenue from the sale of fixed merchandise.

Telekom Slovenije, which employed 2,116 people at the group level at the end of June, also saw its operating revenue fall by 1% to EUR 316.6 million.

Earnings before interest and taxes (EBIT) were up by 6% year-on-year to EUR 31.1 million, but earnings before interest, taxes, depreciation and amortisation (EBITDA) fell by 1% to EUR 112.2 million, which the company attributes in part to rising energy and electricity prices.

The EBITDA margin was 35.7% at the group level.

Capital expenditure was down by 38% year-on-year to EUR 77 million in the first half of the year. The group is planning to earmark EUR 203 million for investment during entire this year.

The parent company Telekom Slovenije saw its sales revenue in the first half of the year drop by 3% y/y to EUR 280 million. EBIT were down by 9% to EUR 21.6 million and EBITDA fell by 4% to EUR 89.9 million with the net profit dropping by 42% to EUR 16.6 million.

The company says the group's operations have not been directly affected by the Russian war on Ukraine, but they will feel indirect effects such as rising energy and electricity prices.

"The group is exposed to specific risks in the supply chain, as there may be shortages of certain materials for the manufacture of devices and other technical products, which may also result in delivery delays or higher prices.

"We are monitoring the situation closely and will continue to do so in the future, and will adapt activities as required," the management said, adding that the changing global conditions increase risks in the area of cyber security with their activities focused on ensuring the highest level of security, reliability and trust, and on the management of associated risks.

For the entire this year, Telekom Slovenije is projecting EUR 660.6 million in operating revenue, EUR 211.2 million in EBITDA and EUR 27.9 million in net profit.