Telekom announced today the financial results for Q1 2017, revealing how much money it collected in the first three months of this year in our country. According to those from Telekom, in Q1 2017 the mobile operator recorded revenues of 252..2 million euros in Romania, an increase compared to the same period last year.
The fixed services division of Telekom recorded a 4.6% increase in revenues in Q1 2017 compared to Q1 2016, while the mobile division recorded a decrease in revenues by the same percentage, in the same period. Based on this information, it seems that Telekom had a better evolution for fixed services than for mobile ones, and Digi Mobil could be the cause of the differences.
Telekom announced the financial results for Q1 2017
At the end of Q1 2017, Telekom's fixed services division had 4.77 million customers, 53.000 less than in the same period last year. In the case of Telekom's mobile division, the customer base dropped to 5 million, 11.2% less than in Q1 2016, so we are talking about the loss of over 500.000 customers in a single year.
The loss recorded by Telekom in terms of the number of mobile service customers is enormous, and this says a lot about the operator's situation. If last year Telekom had over 10 million customers, more than Orange, now it has moved to the second position in the list of operators in Romania with the most customers.
More details regarding the financial results of those from Telekom can be found in the attached press release.
"Telekom Romania announces improved financial results for Q1 2017
Telekom Romania group of companies
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| Telekom Romania Communications · Net income for Q1 2017, up 4,6% vs. Q1 2016; · Positive adjusted EBITDA, up 4,4% in Q1 2017 vs. Q1 2016; · Threshold of almost 400.000 customers for converged fixed-mobile services |
Telekom Romania Mobile Communications
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Telekom Romania Communications and Telekom Romania Mobile Communications announce the main performance indicators for the first quarter of 2017, ended on March 31, 2017, according to data published today by OTE Group.
"The business stabilization trend continued in the first quarter of 2017. Some of the main business segments recorded unprecedented growth. For example, from the perspective of sales volumes of post-paid SIMs in the residential segment, the first quarter of this year was among the most successful in the history of the Telekom Romania group of companies.
In addition, in addition to the predictable growth for converged, TV and wholesale services, the implementation of complex IT&C projects, as well as revenues from collateral areas of the main business, such as the real estate area, contributed to the positive results this quarter.
We are confident that the commercial repositioning from mid-April, with Internet-based offers, will also generate relevant results in the next period", said Anastasios Tzoulas, Chief Financial Officer of Telekom Romania operations.
Telekom Romania Communications
In Q1 2017, Telekom Romania Communications reported positive indicators in terms of revenues and adjusted EBITDA, due in particular to increases in the integrated and wholesale services segment, as well as the efficiency of personnel expenses and other lower fees. Regarding the number of customers, those of integrated services, respectively TV, follow the same positive trend.
Thus, revenues for Q1 2017 were 143,4 million euros, up 4,6% versus Q1 2016, while adjusted EBITDA was 21,4 million euros, up 4,4% year-on-year per year.
Operating costs, excluding depreciation, amortization and severance program expenses, increased 6,7% in Q1 2017 compared to Q1 2016 due to higher direct customer costs such as interconnection, mobile equipment and equipment installed at customers. Indirect costs after capitalization, excluding expenses related to voluntary severance programs, were reduced by 4,6% compared to the same period last year.
In Q1 2017, 47,4% more customers were registered for fixed-mobile integrated services, their number reaching 398.242 at the end of March 2017. A slight increase was also registered in the segment of television service customers, with 0,6, 1,46% to 3 million, with related revenues up 1% in Q2017 2016 compared to the same period in 20. Internet TV (IPTV) revenues had the most significant growth rate of XNUMX% from year to year.
Telekom Romania Communications reported 1,18 million broadband customers (both fixed and mobile) at the end of Q1 2017, at a level similar to that recorded at the end of last year. Voice users (fixed and mobile) reached 2,13 million at the end of the first three months of the current year, up from 2,15 million at December 31, 2016. This result was reflected in 14% lower revenue generated by voice services fixed voice, compared to the same period last year.
The increase recorded by the "Other income" category largely reflects the income from IT&C projects delivered to corporate clients. The company also earned in Q1 2017 from the sale of various real estate assets.
The revenues of Telekom Romania Communications related to the wholesale segment increased by 21,5% in Q1 2017, to 29,4 million euros compared to the same period in 2016.
The number of subscriptions reported for fixed and mobile services was 4,77 million at the end of March 2017, up from 4.83 million in the same period of the previous year.
In the business segment, the company also registered a positive evolution both in terms of new clients added to the portfolio and in terms of the type of solutions offered.
In Q1 2017, the KFC Romania, Pizza Hut Romania, Pizza Hut Delivery Romania and Paul Romania brands benefited from the complete MOA - Managed Office Automation solution, purchased from Telekom Romania, through which the operator's specialists efficiently manage, through the Telekom infrastructure, the network internal (video surveillance systems, security solution, computers, laptops, etc.) from all customer locations and the ERP / CRM system.
Also, GP Sofa, one of the largest manufacturers of upholstered furniture in Romania, currently benefits from complete solutions from Telekom which include, in addition to standard fixed and mobile services, services such as Metronet, VPN and other customized IT&C solutions and based on IP. In Q1, the company purchased from Telekom a complete solution for equipping a newly built production hall, which includes cabling, surveillance and security solutions.
Telekom Romania Mobile Communications
On March 31, 2017, Telekom Romania Mobile Communications recorded revenues of 107,8 million euros, down 4,6% compared to the same period last year, while revenues from services decreased by 7,9%, to 71 million euros.
Compared to the same period last year, in Q1 2017, the total customer base of Telekom Romania Mobile Communications decreased by 11,2%, to 5 million, of which 32,3% are customers of post-paid services . The post-paid business segment grew by 2,5% compared to Q1 2016, thanks to dedicated offers for companies, as well as synergies with fixed operations.
In the first quarter of this year, mobile data subscribers reached 240.000, an increase of 4,2% compared to the same period in 2016. The continuous growth in this segment in recent years reflects the need of Romanians for advantageous communications offers, which include devices mobile and internet access, allowing them to stay connected and informed.
In this context, the growth trend is also reflected in the sales volumes of post-paid SIMs in the residential segment which, in Q1 2017, were among the highest in the history of the Telekom Romania group of companies.
ARPU (average revenue per user) registered a slight increase of 0,3% compared to Q1 2016, up to 4,7 Euros.
The 4,6% decrease in total revenues, in addition to lower operating costs, led to a 14,2% decrease in adjusted EBITDA, to 15,7 million euros, compared to Q1 2016.
Along with fixed operations in Romania, Telekom Romania Mobile is making efforts to improve its performance, including by expanding 4G capabilities, reorienting sales efforts, as well as by streamlining costs.
In 2017, one of the digital trends in the mobile segment will be represented by OTT (over the top) services, such as Telekom TV Web&Mobile, against the background of increasing demand for non-linear video content and consumption on mobile devices."
