Telekom Romania announced during this day the financial results for Q3 2014 in our country, this being the first time that the financial figures for a fiscal quarter. According to the operator, it has 1.4 million TV subscribers, total revenues up 9% compared to the same period last year, subscriber base up 3% compared to last year, business customer base up 6.4% and traffic of data increasing c 125%.
In the 3 months for which the report is made, Telekom Romania earned 151.3 million euros in Romania, the total revenues of the first 9 months being 457.7 million euros, with 2.4% increase compared to the same period last year. Separately, the operator recorded significant increases in almost all areas, mainly in those related to the Internet and television, but this was expected in a Romania that is in search of more and more new content.
Telekom Romania Group maintains its stable evolution, according to the results of Q3 2014
Telekom Romania Communications
- Approximately 1,4 million TV subscribers;
- Pro Forma EBITDA at 9 months, higher by 7,5% yoy;
- 38% higher revenues from ITC projects;
- Over 100% increase in income from secondary business activities.
Telekom Romania Mobile Communications
- Revenues increasing by 5% in Q3 vs. Q2 2014;
- Total revenues in Q3, up 9% yoy, excl. the impact of the reduction of interconnection tariffs;
- ARPU, increasing by 5% in Q3 vs. Q2 '14;
- Postpaid customer base at 9 months, increasing by 3% yoy;
- The business customer base at 9 months increased by 6.4% yoy;
- Data traffic, increasing by 125% in Q3 2014 vs. Q3 2013.
Telekom Romania Communications and Telekom Romania Mobile Communications announce the financial results for Q3 2014, ended September 30, 2014, according to the performance indicators reported by OTE Group.
"The results indicate a stable performance of Telekom Romania's operations, at the same time establishing the foundations for the sustainable development that we anticipate in the medium and long term. At the same time, the figures show the significant impact that a number of unforeseen regulatory and tax measures have had, in addition to the investments required to switch to the T brand. These factors have significantly limited our ability to invest in commercial initiatives and indirectly affected the attraction of new contracts. However, the constant growth in key areas, such as the business segment, broadband revenues or the number of postpaid customers, represents a solid basis to continue strengthening the positioning as an integrated network that offers complete solutions", said Anastasios Tzoulas, Chief Financial Officer, Telekom Romania group.
Despite the market conditions, the two companies continued their planned investments in Q3 as well. Most of the investments in 2014 mainly target the expansion of FTTH, 3G and 4G networks.
Telekom Romania Communications
The financial results reported by Telekom Romania Communications for the first three quarters of this year show a stable path, with increases in strategic areas: television and IT&C solutions for companies. The wholesale segment also maintained its growth rates. The decision to focus on operations specific to telecom companies was reflected in increases of over 100%.
Pro Forma EBITDA for the first 9 months of 2014 was 7,5% higher compared to the same period last year, reaching 118,4 million euros. The same indicator reported for Q3 2014 is 35 million euros. For the first 9 months, Telekom Romania Communications reported a 2,4% increase in revenues compared to the same period last year, amounting to 457,7 million euros. Revenues for Q3 2014 remained stable, amounting to 151,3 million euros.
The EBITDA level for the first 9 months was affected by the introduction of the special construction tax, with a significant impact on the company which historically owns an infrastructure based on copper and sewers.
The company's strategy, mainly oriented towards the delivery of quality TV content through various TV platforms, led to maintaining the growth rate of the customer base, whose number reached approximately 1,4 million in Q3 2014. The number of Internet customers was maintained at the same level compared to the same period last year. The revenues related to the two segments continued to register increases of 7% for television and 6% respectively for Internet broadband in Q3 2014. These increases in revenues generated by the two segments partially offset the decrease of 14% in fixed voice.
The number of subscriptions was 4,8 million for Q3 2014, remaining stable compared to the same period last year.
Strengthening the position as a provider of turnkey IT&C solutions for companies was reflected in 38% higher revenues in this segment in Q3 2014, mainly generated by contracts for IT&C system solutions and projects. Revenues from the wholesale segment had an important contribution to those reported at the level of the entire company, being higher by 11% in Q3 2014 compared to Q3 2013, due to increased traffic.
Other activities that are not specific to the company's main field of activity had increases of over 100% mainly due to the capitalization of the real estate portfolio.
Telekom Romania Mobile Communications
In Q3 2014, the evolution of Telekom Romania Mobile Communications was stable. In the business segment, despite the intense competition, Telekom Mobile Romania maintained its position on the market. In the first 9 months of 2014 compared to the same period of 2013, the business customer base increased by 6,4%, while revenues from the B2B segment increased by 12,7%. This comes mainly from the increase in sales of subscriptions from the Business XXS – XXL Plus portfolio, dedicated especially to SoHo and SME customers, the most popular subscriptions being those with unlimited minutes and SMS in any national network and mobile Internet included in the subscription, together with a smartphone.
The postpaid customer base also increased by 3% at 9 months yoy, reaching 26,8% of the total base of 5,9 million customers of Telekom Romania Mobile Communications (including Zapp).
Excluding the impact of interconnection tariffs, the total revenues of Telekom Romania Mobile Communications in Q3 2014 would have registered a 9% increase compared to the same period of the previous year.
Total revenues in Q3 were 107 million euros, up 5% compared to Q2 2014. Pro Forma EBITDA (operating earnings before interest, taxes and depreciation) reached 25,5 million euros, similar to the previous semester. The EBITDA margin reached 23,8% in Q3 2014, while service revenues were 4% higher compared to Q2 2014, and as a result of the launch of the new T brand.
ARPU (average revenue per user) increased by 5% in Q3 2014 compared to Q2 2014, reaching the value of 4,78 euros, thanks to the launch of new competitive, integrated offers.
Data traffic has more than doubled compared to Q3 2013, registering a considerable increase of 125% yoy. 4G services expanded significantly, generating a 75% increase in data traffic and a doubling of the number of active 4G users in Q3 compared to Q2 2014. High-speed Internet revenues also maintained the upward trend from the previous semesters, registering a 26% increase over the previous year, as a result of investments in technology.
And smart phone sales have more than doubled every 9 months, compared to the same period in 2013, registering a 110% evolution.
Telekom Romania Mobile Communications is in full development of the 4G network, offering 4G coverage for 50% of the urban population and 27% of the total population (rural and urban). In Bucharest, 4G coverage is for 98% of the area, while in the tourist towns of Brasov and Poiana Brasov the coverage is 98% and 100%, respectively.
Customers who are not in the 4G coverage area can benefit from 4G Experience, an advanced connection based on 3G HSDPA dual carrier technology, which allows speeds of up to 43,2 Mbps, in 269 cities and over 5056 localities.
At the end of Q3 2014, OTE Group provided telecommunications services to approximately 15,2 million customers in Southeast Europe.
