Telekom Romania announced the financial results for Q3 2015 during this day, of course, we are talking about increases in all important segments in both divisions of the company.
Both Telekom Romania Communications, and also Telekom Romania Mobile Communications have recorded increases in receipts in the last three months, but also increases in the number of clients, so everything is going on an upward trend as far as the telecom operator is concerned.
Below you can see all the details of the financial results and you can get an idea in which segments Telekom has grown and in which segments there is still room for growth when it comes to comparisons with its direct competitors.
Telekom Romania announces the financial results for Q3, 2015
Key segments continue to grow: integrated services, TV and mobile subscriptions
| Telekom Romania Communications
· More than 160.000 customers for integrated services; · More than 1,43 million TV customers, up 2,5%; · Revenues of 442,7 million euros in the first 9 months of 2015, down 3,3% vs. the first 9 months of 2014.
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Telekom Romania Mobile Communications
· Revenues of 109,2 million euros, up 2,1% vs. Q3 '14; · Business customer base, increasing by 7,7% vs. Q3 '14; · Number of new customers with subscriptions, up 15,5% vs. Q3 '14.
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Telekom Romania Communications and Telekom Romania Mobile Communications announce the main performance indicators for the third quarter of fiscal year 2015, ended September 30, 2015, reported today by OTE Group.
"The first nine months of 2015 reflect stability in certain segments such as mobile, a constant growth rate in Telekom Romania's key segments, such as integrated services and TV, but also decreases in the traditional fixed voice segment. The number of MagentaONE packages increased by almost 10.000 in just one month, from around 150.000 reported in early September. In the mobile segment, we continue to register a constant evolution of the customer base with subscriptions, where we have double-digit growth in the total number of new residential and business customers", he said Anastasios Tzoulas, Chief Financial Officer, Telekom Romania group of companies.
Telekom Romania Communications
The financial results reported by Telekom Romania Communications for Q3 2015 reflect the same growth trends in key areas, such as integrated offers and TV, but also decreases in other segments, with a direct impact on revenues and EBITDA. Thus, revenues amounted to 143,5 million euros in Q3 2015, registering a decrease of 5,2% compared to Q3 2014. In the first nine months of this year, revenues were 442,7 million euros, registering a decrease of 3,3% compared to the same period last year. ProForma EBITDA (earnings before interest, taxes, depreciation and amortization) for Q3 2015 was €23,9 million, down 31,7% from Q3 2014, partly due to lower revenues generated by the telephony segment fixed and less significant revenues generated by collateral activities, such as the capitalization of old copper infrastructure and real estate portfolio.
The number of customers opting for integrated MagentaONE services exceeded 160.000, resulting in a 201% increase in mobile service revenue in Q3 2015 vs. Q3 2014.
New features and exclusive content, such as football competitions offered for a complete multi-screen experience, led to the maintenance of positive results for television services. Thus, the customer base increased by 2,5% at the end of September 2015, reaching 1,43 million. Related revenues for the first nine months of 2015 increased 5% compared to the same period in 2014. The most significant growth rates in television revenues by technology were generated by interactive television (IPTV) service and by digital cable services. This is the result of the intensive campaign to implement the latest generation FTTH technology, which enables access for TV to new functionalities such as cloud recording, TV archive, VoD, etc. Some of these features are also available online via Telekom TV Web & Mobile.
The number of subscribers to broadband services reached 1,2 million, down 2,9% compared to Q3 2014, due to areas where optical infrastructure is not available. To compensate for this aspect, the expansion of the FTTH network, which offers Internet speed up to 1 Gbps, will continue in the coming period. In the medium to long term, it is expected to generate positive results in terms of revenue and subscribers.
The decrease of 0,2% in the number of fixed voice subscribers in Q3 2015 compared to Q3 2014, and therefore in revenues, is in line with the general downward trend in this segment.
Although revenues from segments such as IT&C solutions and data services continued to generate relevant results, they could not offset the overall decline in revenues from wholesale and non-core activities. The costs related to voluntary departures amount to 12,2 million euros in Q3 2015, with an impact on the EBITDA level.
Telekom Romania Mobile Communications
Telekom Romania Mobile Communications recorded stable results in Q3 2015, with revenues amounting to 109,2 million euros, marking an increase of 2,1% compared to Q3 2014.
The business segment grew by 7,7% annually, while revenues from services in the B2B segment increased by 18,3% in Q3 2015 compared to Q3 2014. In the last three months, Telekom Romania Mobile Communications added to its portfolio of business several strategic accounts, such as Bank Leumi or Damen Galati Shipyard.
The total customer base (including Zapp) at the end of Q3 2015 was approximately 5,7 million, down 2,9% compared to Q3 2014. The total subscription customer base increased 4,8% compared to with Q3 2014 reaching 29% of the total customer base, while the number of new postpaid users increased by 15,5%.
The ProForma EBITDA margin (profit before interest, taxes, depreciation and amortization) was 22,3% in Q3 2015, down 1,5 percentage points compared to Q3 2014. Proforma EBITDA reached 24,4 million euros in Q3 2015. Blended ARPU increased by 0,9%.
Currently, Telekom Romania offers 4G coverage for up to 57% of the urban population and 32,4% of the total population (urban and rural). In Bucharest, 4G covers 98% of the city's surface, while in Brașov and Poiana Brașov, the main tourist destinations, the degree of coverage is 98% and 100%, respectively. In addition, there is an advanced connection based on HSDPA 3G dual carrier technology, which allows speeds of up to 43,2 Mbps in 271 cities and over 5.287 localities.
