Telekom Slovenije

Earnings Release • Oct 26, 2018

Category: Inside information

Published on: SEOnet

Published at:  25.10.2018 08:50

Published document ID: INI-827/18

INI-809/18

TELEKOM SLOVENIJE, d.d., Ljubljana

Telekom Slovenije Group's 9-Month Results

Pursuant to Article 17, Paragraph 1, of the Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC, to Article 136 of the Market in Financial Instruments Act, and to the provisions of the Ljubljana Stock Exchange Rules and the valid legislation, Telekom Slovenije, d.d., Cigaletova 15, Ljubljana, hereby notifies the public:

At its 16th regular meeting, which took place on Wednesday, 24 October 2018, the Telekom Slovenije Supervisory Board reviewed unaudited results of the Telekom Slovenije Group and Telekom Slovenije, d.d., for the period between January and September 2018.

Telekom Slovenije Group generated €178.1 million in net operating revenue in the third quarter, which is 2% more than in the same period of last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) reached €52.0 million, which is 10% more than in the third quarter of last year. Compared to the third quarter of 2017, Telekom Slovenije Group also achieved higher net profit, which stood at €9.0 million for the third quarter of this year. Compared to the the third quarter of 2017, Telekom Slovenije Group increased the number of fixed broadband connections by 3%, and the number of mobile and fixed telephone service connections by 1%.

In the first nine months of 2018, Telekom Slovenije Group generated a total of €542.2 million in operating revenue, while its net sales revenue amounted to €538.1 million. The share of revenue from the segment of new services and fixed broadband and IT services has increased year on year. Compared to the end of 2017, Telekom Slovenije Group increased the number of fixed broadband connections by 4%, which is above plans, and the number of mobile and fixed telephone service connections is also up by 2%, also above plans. Revenue has been impacted by EU regulation, and the 2017 revenue also included the one-off project of constructing the electronic toll collection system.

In the first nine months of this year, Telekom Slovenije Group’s earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at €152.9 million, with an EBITDA margin of 28.4%. Earnings before interest and taxes (EBIT) amounted to €27.8 million, and were affected by regulatory changes affecting roaming in mobile networks at the European Union level, which has also increased the operating cost.

Telekom Slovenije's operating expenses in the first nine months of the year amounted to €514.4 million, which is at the same level as last year. Following the calculation of corporate income tax with deferred taxes, the Telekom Slovenije Group completed the first nine months of 2018 with a net profit of €23.5 million.

In the first nine months of this year, Telekom Slovenije Group invested a total of €79.4 million in the modernization, improvement and further development of fibre optics networks and the mobile network.

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: 26.10.2018