The Slovenian government is prepared to sell its stakes in several companies, including Telekom Slovenije. According to a report in Croatian daily Business, the government’s stake in Telekom Slovenije is most likely to be the first one up for sale and is considered the most attractive among the state equity holdings earmarked for divestment. The newly formed holding company of state assets, which manages an equity portfolio worth EUR 11 billion, will sell shares based solely on economic conditions. Any sale will take into consideration the price and the quality of the potential buyers, as well as other elements such as business plans, the creditworthiness of the potential customer, and the maintenance of a large number of jobs.
Posts tagged Telekom Slovenije
Telekom Slovenije d.d. : Performance of the Telekom Slovenije Group in the first nine months of 2012
The Telekom Slovenije Group generated EUR 595.9 million in operating revenues during the first nine months of this year, a decrease of 4% on the same period last year. Contributing in particular to the decline in revenues were certain trends that have been characteristic of the operations of the majority of leading operators around the world for several years. Revenues generated by the once primary services of fixed and mobile telephony are in decline, while growth in broadband connections and services based on that technology is slowing. Nevertheless, the Group’s stringent measures to reduce all types of costs during this period resulted in a net profit of EUR 41.9 million, an increase of 11% on the same period last year. The Telekom Slovenije Group’s operating results for the first nine of the year were discussed and approved yesterday by the Company’s Supervisory Board.
If the Telekom Slovenije Group wants to maintain or improve profitability, it must counter negative trends by consistently reducing all types of costs and by expanding operations and the range of products and services in the long term beyond traditional telecommunications activities to television, digital advertising, management services and cloud computing services. The Business Report for the first nine months of the year indicates that the Group successfully managed the aforementioned trends by adopting the appropriate measures.
The Telekom Slovenije Group generated EUR 595.9 million in operating revenues over the first three quarters of the year. Net profit totalled more than EUR 41.9 million, compared with EUR 37.7 million during the same period last year. Earnings before interest and taxes (EBIT) reached EUR 63.2 million, at the same level generated during the comparable period last year, but above planned EBIT. A similar trend was seen in EBITDA, which amounted to more than EUR 198.4 million, resulting in an EBITDA margin of 33.3%. Net financial debt was down by nearly EUR 52 million to stand at EUR 336.7 million, meaning that the Slovenian national operator is among the least indebted leading operators in Europe.
The Telekom Slovenije Group is aware that all previously adopted measures will not be sufficient if they do not facilitate the urgently needed development of networks, technologies and services. The Group also remains one of the major investors in Slovenia. The Group earmarked EUR 60.9 million for investments over the first nine months of the year, an increase of 22% on the same period last year. The parent company accounted for more than half, or EUR 32.6 million, of the aforementioned amount, while investments in Kosovo and in TSmedia and GVO were up on the previous year, confirming the Group’s focus on the construction of state-of-the-art fibre optic umbrella networks, on new ICT services and solutions, and on multimedia content and digital advertising. One of the most important recent projects in Slovenia is the start of construction of the most state-of-the-art mobile LTE network.
The Telekom Slovenije Group had a total of 2.7 million fixed and mobile connections at the end of September, an increase of 1% on the same period last year. The number of broadband connections is gradually stagnating, while the number of fixed connections continues to decline. The Group recorded growth in mobile connections, primarily owing to growth at the Macedonian company One and at Ipko in Kosovo.
Business expectations of Telekom Slovenije for 2012 are as follows:
EBITDA up to €250 million
CAPEX from €130 to €140 million
Net profit €43 million
The notification is also published at the company’s website www.telekom.si for the period of at least five years following the announcement.
In 2011 Telekom Slovenije Group made €824.5 million of operating revenues, which is by two percent below the preceding year. The EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is €255.6 million, which is by 3% more than in the year before. The EBITDA margin is 31%, having increased by 6%. The EBIT (Earnings Before Interest and Taxes) is €63.25 million. In the business year 2011 Telekom Slovenije Group exhibits somewhat over €34 million net profit. The Telekom Slovenije financial report includes significant events, assets and liabilities of the acquired company Mobitel from 1 January 2011 onwards. The unaudited business report was yesterday also discussed by the Supervisory Board.
In the first half of 2011 the acquired company Mobitel made a net profit in the amount of €21.3 million, operating revenues of €185.7 million, and operating expenses in the amount of €161.6 million. The comparative financial statements of the acquiring company – Telekom Slovenije for 2010 have been adjusted so as if the two companies have been operating together in the comparative period. Positive effects of the merger on the group operation were evident already in the first months after the merger, i.e. in the results for Q3 of last year.
On 1 April 2011 Planet 9, d. o. o. was merged by acquisition with Najdi, informacijske storitve, d. o. o., and the latter was on 20 September renamed to become TSmedia, medijske vsebine in storitve, d. o. o. In this way the Telekom Slovenije Group followed its strategy of introducing new services and revenue growth outside the traditional telecommunications services, which is being upgraded with the project of introducing their own TV channel, which was yesterday approved by the Supervisory Board.
In the second half of 2011 Telekom Slovenije verified the fair value of its investments in subsidiaries. On the basis of the assessment by a certified appraiser it was determined that the recoverable amount of investments in some of the subsidiaries has fallen below their book value. Thus, in accordance with accounting standards, the company impaired 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 €6.5 million, and recognized the difference in profit or loss as a revaluation financial expense. Financial consolidation of the Telekom Slovenije Group remains one of the most important aspects of the group development also in the future.
Fierce competition, regulation and relentless macroeconomic conditions demonstrate that the obtaining of revenues and ensuring the necessary profits has also in the electronic communications market become increasingly difficult to achieve. Therefore the business plan for 2012 with the projection until 2016, the Telekom Slovenije Group focuses on looking for new revenue sources, and in the short-term, mainly on cutting costs. The effects of restructuring and the beginning of the business processes reengineering are already visible in the business results for the year 2011 and, due to the changes planned, a similar trend is to be expected in the year 2012.
In line with its business plan and strategy, the Telekom Slovenije Group is carrying out a transition from being a provider of mainly infrastructure services to become a provider of the most demanding IT and multimedia services. With revenue growth and cooperative operation within the group, it will achieve profitable growth on the markets of the South East Europe. For the purpose, Telekom Slovenije is at an accelerated pace performing restructuring from a national telecommunications operator to a regional operator with significant elements of a regional corporation.
For 2012 the Telekom Slovenije Group plans to make the profit of €55 million, EBITDA up to €280 million, and the CAPEX of €120 to €135 million.
Slovenian incumbent Telekom Slovenije has increased its equity holding in Macedonian alternative fixed line operator and mobile provider ONE Telekomunikaciski to 53.99%, by acquiring the shares held by its Netherlands-based subsidiary SIOL through a series of capital hikes totaling EUR90 million (USD117.4 million).
On 12 December 2011 the Slovenian telco purchased a further 11.15% share of ONE for EUR30 million, following which it snapped up an additional 8.14% stake for a similar amount of money on 19 December. Its latest purchase – again for EUR30 million – is for a 6.21% share and upon completion of the capital increases, Telekom Slovenije will own 53.99% of ONE, while the share of SIOL (in liquidation), will reduce to 46.01%.