Telekom Slovenije reports 31% higher Jan-Sep profit

Ljubljana – Slovenia’s telecoms group Telekom Slovenije reported EUR 486.8 million in net sales revenue for the first three quarters of the year, up by 1% on the same period a year ago. Net profit was up by 31% to EUR 35.9 million, although the company said the figure would have been 36% higher when taking into account one-off events in 2020.

Operating profit (EBIT) rose by 18% to EUR 47.5 million. Taking into account one-off events in 2020, EBIT in 2021 would have been 39% higher, compared with the same period last year, follows from the regulatory filing and business report released by the company on Thursday.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) were up by 5% to EUR 174 million, but would have been 9% higher considering last year’s one-off events. The EBITDA-to-sales ratio at the group level was 35.7%.

The group, which employs 3,381 people, posted higher revenue from international voice services and sales of mobile merchandise.

A increase in sales was also posted by the Kosovo subsidiary IPKO, the sale of which was stopped in November last year. IPKO made a net profit of EUR 10 million after posting a loss of EUR 2 million in the same period last year.

Meanwhile, the parent company saw its sales revenue drop by 15% to EUR 435.5 million as operating profit declined by 8% year-on-year to just below EUR 34 million and EBITDA remained level. Net profit was up by 27% to EUR 35.8 million.

In the period between January and September, the group spent EUR 157 million on investments, including the acquisition of the radio frequency spectrum for EUR 52.1 million.

“Telekom Slovenije Group continues to be financially stable and continues to adapt its activities to the changing market conditions, while carefully monitoring and assessing the risks in supply chains, credit risk, system operations and the profitability of individual services so it can take appropriate measures,” the management said in the filing posted with the Ljubljana Stock Exchange.

The nine-month operations were reviewed yesterday by the Telekom Slovenije supervisory board, which also endorsed the appointment of Tomaž Seljak as CEO of IPKO Telecommunications for a two-year term, starting from today.

For the whole 2021 the group expects to post operating revenue to the tune of EUR 653 million, EBITDA to the tune of EUR 210.6 million and a net profit of EUR 30.8 million. Capital expenditure is to amount to EUR 203.7 million.