Telekom manages to demonstrate that although it is preparing to sell its fixed and mobile services divisions in Romania to Orange Romania si RCS & RDS, is still a very strong company. Telekom, which is running a Black Friday 2019 campaign in this page, announced the other day very good financial results for 2019, with an increase in receipts, but also in profit, which at first glance calls into question the feasibility of the sale.
Telekom announced increases in those important segments, but when it comes to the customers it has for fixed and mobile services, things are not quite as good, because there are also areas with losses, some large. Orange Romania, which will have Black Friday 2019 in this page, wants to buy from Telekom the division of fixed services with all the customers there, i.e. a total of approximately 4.6 million subscribers of these services.
Orange Romania is probably looking very carefully at the fact that Telekom has lost customers for all the fixed services it offers in Romania, despite the fact that revenues for the entire division have increased. Telekom is in a constant decrease in the number of customers in all its divisions at this time of the year, but this will most likely not affect the sale to Orange Romania, the "oranges" already deciding that they want the German division.
Telekom increases in revenues, decreases in customers before the sale to Orange
Telekom surprised many people with the decision to sell its divisions in Romania, and despite the fact that it lost several million customers, it remained a company with very good revenues, exceeding 1 billion euros annually. Those from Telekom also sold many properties to cover losses, but also investments, so that Orange Romania will buy a fixed services division that is somewhat poorer from this point of view, but with a very good infrastructure.
Orange Romania is in great need of that Telekom fixed infrastructure, which it uses anyway for internet, television and fixed telephony services, helping the company to offer fixed-mobile convergent services in the country. Many people were surprised that Orange Romania did not buy Telekom's mobile division, but this was somewhat expected, considering that it does not really need it, and anyway there were high chances for a blocking of the purchase by the European Commission.
Telekom would also like to get rid of the mobile services division, but RCS & RDS is proving to be a very difficult negotiation partner, wanting to buy only the infrastructure, without customers, and that very rightly so. Telekom lost 400.000 mobile service customers in one year, although revenues increased, and so the company is preparing to leave Romania in a less lavish way than the one in which it entered our country.
