Telekom Romania is one of the largest mobile phone operators in our country, and during this day he announced financial results for Q4 2014. The main key points of the announcement are: increase in TV customers by 4.5% to 1.41 million, increase in TV revenues by 8.2% compared to 2013, increase in the business customer base by 19% compared to 2013, increase in Internet services revenues by 23% compared to 2013, increase in data traffic by 90% compared to 2013 and tripling the number of clients compared to Q3 2014.
The most spectacular statistic offered by Telekom is the one concerning the tripling of the number of 4G customers in just three months, this proving that the rebranding COSMOTE in Telekom it was extremely beneficial. Throughout 2014 Telekom Romania had total revenues of 609.1 million euros, almost identical to that of 2013, so we are not talking about any growth from this point of view. Below you have all the details regarding the financial results of Telekom Romania, so you can get an idea about the company's performance.
The most interesting part of them is related to the number of customers, the mobile division having 6 million, while the fixed services division has 4.8 million. Telekom does not present a combined figure for the two divisions, separating the information into the number of subscriptions and the number of clients, so we are probably not talking about a total number of clients greater than that of Orange.
Telekom Romania's performance remains stable in Q4 2014
| Telekom Romania Communications
· 4,5% more TV customers, reaching 1,41 million; · Stable revenues at 609,1 million euros at the end of 2014; · Revenues for TV higher by 8.2% from one year to another; · FTTx coverage in 22 cities.
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Telekom Romania Mobile Communications
· Business customer base, increasing by 19% in 2014 vs. 2013; · Broadband revenues, increasing by 23% in 2014 vs. 2013; · Data traffic, increasing by 90% in 2014 vs. 2013; · The number of 4G customers almost tripled in Q4 vs. Q3 2014 (287% increase).
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Telekom Romania Communications and Telekom Romania Mobile Communications announce the financial results for Q4 2014, ended December 31, 2014, according to the performance indicators reported by OTE Group.
"The fourth quarter of 2014 is undoubtedly marked by T, the rebranding that fully integrated the commercial operations of Telekom Romania Communications and Telekom Romania Mobile Communications with the aim of becoming the number one integrated operator in Romania. Significant investments were made in this unprecedented process with direct impact on EBITDA. However, three months after the rebranding, the first results began to be felt - an encouraging number of new subscriptions for unlimited communication and entertainment packages, stable growth in the star segments, such as TV and ITC services for companies." said Nikolai Beckers, CEO of the Telekom Romania group of companies.
Despite the market conditions, the two companies maintained their positive trajectory and continued their investment plan, most of which was directed towards the expansion of FTTH, 3G and 4G networks. Thus, at the end of 2014, FTTx coverage was available in 22 cities, with plans for rapid expansion, ensuring speeds between 100 Mbps and 1Gbps for the Internet. In 2014, 4G services reached 50% coverage in urban areas with speeds of 150 Mbps. Also, on the mobile side, efforts were continued to modernize, expand and optimize the network for all available technologies (GSM-2G, UMTS-3G and LTE-4G), thus being able to accommodate double data traffic compared to the end of the year 2013. The expansion of mobile network coverage mainly targeted indoor urban areas, national roads and rural areas, mainly targeting business customers.
"All these achievements were achieved despite a difficult year, marked by unforeseen regulatory and fiscal measures, with a significant impact on key financial indicators. The solid strategy established for 2015 aims to achieve good results in the next period as well. We will continue to focus on key segments that will position Telekom Romania as the best provider of TV experiences on the market. In the enterprise segment, we aim to maintain our top position and become the first choice in providing ITC solutions," added Mr. Beckers.
Telekom Romania Communications
The financial results reported by Telekom Romania Communications for the end of 2014 show stability, with revenues at the same level as in 2013 and maintaining growth rates in key areas such as TV and integrated offers.
Revenues for the end of 2014 remained at the same level of EUR 609,1 million compared to the end of 2013. EBITDA valid for 12 months in 2014 was EUR 149,2 million, up 1% yoy, while Pro The EBITDA form for the whole year 2014 had an increase of 0,4%, reaching 159,9 million euros, compared to the same period last year. The results show the impact of the special construction charge, which was significant on the company that historically owns copper and sewer-based infrastructure. ProForma EBITDA for Q4 2014 was 41,5 million euros compared to 49,2 million in Q4 2013.
The successful launch of converged services following the rebranding generated an increase in mobile revenue in Q4 2014 compared to Q4 2013. The sale of integrated packages exceeded expectations by 52%.
TV continues to be the segment with the highest growth, up 4,5% as of December 31, 2014, reaching 1,414 million customers. Corresponding revenues for Q4 2014 increased by 8.2% compared to Q4 2013. The first multiscreen platform in Romania that integrates complete IPTV & OTT services offers customers access to up to 62 TV channels. As a result of constant investments in TV content, with an emphasis on international sports competitions, exclusives and premium content, the number of customers who opted for the TV L package, with maximum benefits, doubled. Among the most popular TV extras are those targeting premium movie channels. Also, the new capabilities of the TV platforms in the portfolio ensure a superior experience for customers.
Quarterly revenues from the Internet services segment remained at the same level, and the number of subscribers to broadband services was 1,232 million at the end of 2014. Almost all of these customers have access to Wi-Fi thanks to routers with such capabilities, available in the commercial offer since 2010.
In the business segment, despite fierce competition, Telekom Romania Communications managed to maintain its leading position for fixed voice and premium data services, both in terms of the number of lines and revenues.
The revenues recorded by Telekom Romania Wholesale decreased by 21,6% compared to Q4 2013, those related to international traffic partially compensating for the decline generated by the decrease in interconnection tariffs for fixed and mobile.
The number of subscriptions, at 4,827 million in Q4 2014, remained stable compared to the same period last year.
Revenue from activities not specific to the company's core business (legacy copper infrastructure and real estate) increased by 10% in Q4 2014 versus Q4 2013.
Telekom Romania Mobile Communications
The results of Telekom Romania Mobile Communications remained stable in 2014, a year characterized by the continuous expansion of 3G and 4G networks, as well as the relaunch of the subscription offer under the new T brand.
More precisely, the business customer base of Telekom Romania Mobile Communications increased by 19%, from year to year. The increase comes mainly from the sales of subscriptions from the Unlimited Business XXS – XXL and Unlimited Internet XS-XXL portfolios, launched in September 2014. The positive evolution was also influenced by the very attractive subscription offers with smartphone or tablet included, which perfectly responded to the needs of customers' business. Revenues from services in Q4 2014 in the business segment registered a 7% increase in Q4 2014 compared to Q4 2013, mainly due to the consumption of mobile data, which doubled in 2014 compared to 2013.
In Q4 2014, Telekom Romania Mobile Communications added new important accounts to its business portfolio, including the Selina Group of Companies, an important player on the construction market in the west of the country, or Cramele Recas, a well-known name on the local wine market.
The total customer base (including Zapp) was approximately 6 million at the end of 2014, of which 26.8% were postpaid.
Although 2014 was marked by a difficult market context, revenues in Q4 2014 amounted to 112,6 million euros. ARPU (average revenue per user) in 2014 was 4,68 Euros.
A main driver of growth was mobile data, with traffic almost doubling in 2014 compared to 2013 (up 90%), correlating with a 35% increase in the share of smartphone sales in total handsets sold in 2014 , compared to the previous year. The total number of 4G customers almost tripled in Q4 compared to Q3, registering a significant increase of 287%.
In general, revenues remained relatively stable in 2014, reaching 439.4 million euros, down 4,2%, but up 3,1% compared to the same period in 2013, if we exclude the impact of the drop in interconnection tariffs.
Pro-Forma EBITDA margin (operating earnings before interest, taxes and depreciation) reached 24% in 2014 versus 2013 – a decrease of 1.9 percentage points reflecting the impact of lower interconnection rates and special construction tax. EBITDA reached the value of 105,6 million Euro at 12 M in 2014.
At the moment, Telekom Romania Mobile Communications offers 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 cities 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 271 cities and over 5287 localities.
At the end of 2014, OTE Group provided telecommunications services to approximately 15,3 million customers in South-Eastern Europe.
