Telekom Slovenije, d.d.'s net sales revenue in the first nine months up 1% on the same period last year

The Telekom Slovenije Supervisory Board, at its 48th regular meeting held on Wednesday, 26 October 2016, discussed the report on the performance of the Telekom Slovenije Group and Telekom Slovenije, d.d., for the period January to September 2016.

Telekom Slovenije, d.d. in the first nine months generated EUR 476.7 million of net sales revenue, up 1% on the same period last year and 2% above the plan. Telekom Slovenije, d.d.'s higher net sales revenues are primarily due to higher revenues from broadband and IT services, and higher revenues on the wholesale market. The company's EBITDA reached EUR 133.6 million and the net profit of EUR 31.0 million, which is also above the plan.

Telekom Slovenije Group generated a total net sales revenue of EUR 522.5 million in the nine-months. However, the key financial indicators of the Telekom Slovenije Group are not directly comparable to the results in the same period last year, since the Macedonian company One was included in consolidation in 2015 until 31 July. A comparison of 2016 revenues with the same period of 2015 excluding One indicates that the net revenues generated over the first nine months of 2016 were EUR 5.1 million or 1% higher. The Telekom Slovenije Group's EBITDA generated in the three months was EUR 157.1 million. Taking into account the creation of impairments of receivables from T-2, d. o. o. (in bankruptcy) and the exclusion of One, which was included in the full consolidation of the Telekom Slovenije Group until 31 July 2015, adjusted EBITDA was at the same level recorded during the same period last year. The EBITDA margin is 30.1%.

The Telekom Slovenije Group's net profit amounted to EUR 23.5 million, but is not comparable to the net profit achieved in the same period last year due to the one-off effect of the exclusion of One in 2015 and the establishment of a new company in Macedonia. The memorandum of association of the company established by Telekom Slovenije and the Telekom Austria Group in 2015 includes conditions for Telekom Slovenije's withdrawal from the newly established company within three years of the association, however, in accordance with the relevant standards, the effects of that withdrawal were recorded in the period in which the merger occurred, which was in 2015.

Compared to the status of 30 September 2015, the Telekom Slovenije Group increased the number of users, with the number of mobile users up 2.4%, the number of fixed broadband connections 5.6%, and the number of TV connections 6.9%.

The Supervisory Board also approved the financial calendar of Telekom Slovenije, d.d. for 2017.

The announcement will also be available at the company's website (www.telekom.si) for a period of at least 10 years.

Management Board of Telekom Slovenije, d.d