Telekom Slovenije

Earnings Release • Nov 9, 2023

Category: Inside information

Published on: SEOnet

Published at:  08.11.2023 09:02

Published document ID: INI-636/23

INI-622/23

TELEKOM SLOVENIJE, d.d., Ljubljana

Business results of Telekom Slovenije Group and Telekom Slovenije, d.d., for the nine months of 2023

Pursuant to the provisions of the Rules of the Ljubljana Stock Exchange and the valid legislation, Telekom Slovenije, d.d., Cigaletova 15, Ljubljana, hereby publishes the following notification:

At its 18th regular meeting, which took place on Tuesday, 7 November 2023, the Supervisory Board of Telekom Slovenije, d.d., reviewed the Unaudited Business Report of Telekom Slovenije Group and Telekom Slovenije, d.d., for the period between January and September 2023.

Despite the high increase in electricity costs and exceptional expenditure related to infrastructure damage caused by floods, the Telekom Slovenije Group generated a net profit 2% higher in the nine months of this year than in the same period of 2022. Following the calculation of corporate income tax with deferred taxes, the Telekom Slovenije Group completed the first nine months of 2023 with a net profit of EUR 39.9 million

The Telekom Slovenije Group generated EUR 527.2 million in net revenue in the first nine months, which is 8% more than in the same period of 2022. Telekom Slovenije Group generated EUR 518.8 million in net revenue, which is 7% more than in the same period of 2022. All Group companies achieved higher revenue. In the mobile segment, revenues are higher due to the growth in the number of subscribers in Slovenia and Kosovo, where the number of prepaid subscribers is also growing, as well as due to higher revenues from mobile retail goods and revenues from the wholesale market. In September 2023, Telekom Slovenije Group had 2% more mobile users compared to September 2022. In addition, Telekom Slovenije, d.d., also achieved growth in financial services, eHealth, insurance, IT services, and sales of goods.

In the first nine months of 2023 earnings before interest and taxes (EBIT) amounted to EUR 59.5 million, which is 16% more than in the same period last year. Telekom Slovenije Group received aid in accordance with the Act Governing Aid to Businesses Hit by High Increases in Electricity and Natural Gas Prices in the amount of EUR 2.3 million for the first nine months of 2023. If the prices of energy resources remained at the 2022-level, and by taking into account the state aid for energy resources and adapting for the net effect of the floods, the operating profit would be 37% higher than in the comparable period of 2022.

Telekom Slovenije Group’s earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at EUR 181.8 million, which is EUR 7 million, i.e., 4% more than in the comparable period of 2022. If the prices of energy resources remained at the 2022-level, and by taking into account the state aid for energy resources and adapting for the net effect of the August floods, EBITDA would be 10% higher than in the comparable period of 2022. The EBITDA-to-sales ratio at the Group level was 35.0%.

2023 operating forecasts

The Telekom Slovenije Group estimates that it will exceed its initially planned operating revenues, EBITDA and net profit in 2023. Based on currently known information, operating revenues will amount to EUR 699 million, EBITDA is estimated at EUR 226 million and net profit of EUR 38 million.

The announcement will also be available on the company’s website (www.telekom.si) for a period of at least 10 years.

Management Board of Telekom Slovenije, d.d.

Date: 09.11.2023