Today Telekom Romania announced the financial results for Q3 2016 dedicated to the two divisions that offer fixed and mobile services to customers. According to those from Telekom Romania, the total revenues for the two divisions were 261.2 million euros, an increase compared to the same period last year.
Although Telekom Romania's revenues have grown healthily, the customer base for the mobile telephony division decreased by 3.4%, most likely going to Digi Mobil. On the other hand, the business customer base grew together with that of TV services customers, so we are talking about serious fluctuations in the operator's customer base.
In total, Telekom Romania has 10.3 million customers of fixed and mobile services, being the largest fixed/mobile operator in Romania, from this point of view. Average revenues per user also increased slightly, despite the fact that more and more customers are leaving for Digi Mobil looking for lower prices for subscriptions.
More details on the performance of those from Telekom Romania can be found in the press release below.
Telekom Romania announces positive financial results for Q3 2016
| Telekom Romania Communications
· 338.232 customers for MagentaONE converged services; · 3,9% higher revenues in Q3 2016, of 149,1 million euros; · Growing revenues for TV and wholesale.
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Telekom Romania Mobile Communications
· Total revenues higher by 2,7% vs. Q3 2015; · Total customer base down 3,4% vs. Q3 2015; · Business customer base growing by 2,4% vs. Q3 2015.
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Telekom Romania Communications and Telekom Romania Mobile Communications announce the main performance indicators for the third quarter of 2016, ended on September 30, 2016, according to data published today by OTE Group.
“This quarter was marked by positive results generated by segments with constant growth, such as TV services and the wholesale segment, which led to higher total revenues recorded in both fixed and mobile. The slight decrease in the number of users of Telekom Romania Mobile Communications is counterbalanced by the growth of the MagentaONE customer base, a trend that shows interest in integrated fixed and mobile services. The number of business customers on the mobile segment increased as a result of fixed-mobile synergies. We continue to focus on improving the customer experience by providing them with expanded 4G and fiber optic networks and diversifying our portfolio of IT&C solutions for businesses. In this regard, in the last three months, we have increased FTTx coverage by approximately 16%, up to two million households covered by this superior technology", said Anastasios Tzoulas, Chief Financial Officer, Telekom Romania.
Telekom Romania Communications
The financial results for Q3 2016 reported by Telekom Romania Communications were marked by an increase in revenues and EBITDA, as well as the constant evolution of fixed-mobile, TV and wholesale convergent offers. Revenues were 149,1 million euros, 3,9% higher than in Q3 2015, and for the first nine months of the year, they reached 435,7 million euros, 1,6% lower compared to the same period of 2015.
Pro Forma EBITDA (operating earnings before interest, taxes, depreciation and amortization, excluding restructuring costs) for Q3 2016 was EUR 29,5 million compared to EUR 23,9 million in Q3 2015, up 23,4%, mainly due to the strict control of indirect costs, the evolution of the wholesale segment and the Ro-NET project, while for the period related to the first nine months it was lower by 21,3%, reaching 65,2 million euros versus 82,8 million euros from one year to another. Operating costs, excluding depreciation, amortization, expenses related to voluntary retirement programs and restructuring costs, remained at the level of Q3 2015, despite higher interconnection costs.
Telekom Romania Communications registered 338.232 customers for MagentaONE converged offers, 92% more than Q3 2015.
The 2,1% increase in the TV customer base is in line with those reported in previous quarters. The number of TV subscribers reached 1,46 million at the end of September 2016, with related revenues up 5% compared to Q3 2015. The TV technology in Telekom's portfolio with the highest growth rate was IPTV. In terms of FTTx, fiber optic coverage has increased to nearly two million households, up from 1,7 million at the end of Q2 2016. Customers opting for this technology benefit from up to 1 Gbps Internet speeds and broadband services. interactive television (IPTV).
The number of Internet broadband subscribers (both fixed and mobile) remained relatively stable in Q3 2016 versus Q2 2016, reaching 1,188 million versus 1,194 million. The revenues generated by the Internet service for Q3 2016 decreased slightly (-1%) compared to the same period of 2015. Voice users (fixed and mobile) were 2,165 million. Despite the evolution of revenues from mobile services, revenues from fixed voice decreased by 13% in Q3 2016.
The revenues of the wholesale segment of Telekom Romania Communications increased by 18,6% in Q3 2016, reaching 31,3 million euros compared to the same period of 2015, while for the first nine months the increase was 8,9%, at 85,4 million euros.
The number of subscriptions reported for fixed and mobile services remained at the same level in Q3 2016 compared to the same period last year, respectively at 4,814 million.
Telekom Romania Mobile Communications
Telekom Romania Mobile Communications recorded total revenues of 112,1 million euros in Q3 2016, up 2,7% compared to the same period last year, while revenues from services decreased by 3,5%, to 77,3, 3 million euros, in Q2016 XNUMX.
Compared to the same period last year, the total customer base of Telekom Romania Mobile Communications decreased in Q3 2016 by 3,4%, to 5,5 million, of which 29% are customers of postpaid services.
The postpaid business segment grew by 2,4% compared to Q3 2015 due to the company's dedicated offers, as well as the synergies created following the rebranding process, together with Telekom Romania Communications, under the Telekom brand.
ARPU (average revenue per user) increased by 0,3% in Q3 2016, compared to Q3 2015.
The lower margin on the prepaid services segment, as a result of the intense competition on the telecommunications services market, together with the costs related to the expansion of the company's business customer base, led to a 2,0% decrease in EBITDA compared to Q3 2015.
Along with fixed operations, Telekom Romania Mobile is taking steps to improve its performance, including through expanded 4G capabilities, sales force reallocation initiatives and cost efficiency.
In the B2C postpaid segment, Telekom Romania Mobile Communications continued to be the operator with the simplest and most transparent product portfolio with prices between 8,95 and 49,95 euros, which address various communication needs.
On the prepaid card segment, data users quickly adopted the GigaWeekend offer launched in 2015, with a bonus of 1GB data traffic, which can be claimed by customers with active options, every weekend. The GigaWeekend bonus enjoyed a redemption rate of 72% and, as a result, Telekom Romania Mobile launched the summer prepaid GigaWeek offer – 1 GB data traffic bonus per week.
