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.