TLSG newsletter / Volume 2 / August 2015

Telekom Slovenije

The Telekom Slovenije Group in the first six months exceeds the planned EBITDA


In the first six months the Telekom Slovenije Group generated net sales revenues of EUR 364.6 million, which is above the plan, and the EBITDA of EUR 104.4 million. The achieved EBITDA is 28.6% of net sales revenue, which is 7% above the plan. Excluding the effects of Gibtelecom and One on the Telekom Slovenije Group’s operations, EBITDA in the second quarter of this year was at the same level achieved during the same period last year. Compared to the same period last year the Telekom Slovenije group has recorded a growth in the number of Tv connections (by 3.5%) and in the number of fixed broadband connections (by 1.6%), while the number of mobile users is down by 0.6%.

The Group’s business results for the period January to June 2015 were also discussed at yesterday’s meeting by the Telekom Slovenije Supervisory Board.

The Telekom Slovenije Group net sales revenues in the first six months of the year are according to plan and down 4% on the same period in 2014. Net sales revenues are affected by call termination prices on the wholesale telecommunications market, lower revenues from services outside subscriber packages with included quantities, and declining revenues from traditional voice telephony and its replacement by IP and mobile telephony. The Telekom Slovenije Group's net profit amounted to EUR 20.6 million.

“In the Telekom Slovenije Group we have a clearly outlined development strategy and vision, which we have been successfully implementing. Even during the privatisation procedure, which has put additional workload on the company and the employees for two years, we have successfully implemented all strategic projects and kept the strongest focus on developing new products and services, and on achieving the set goals. The Telekom Slovenije Group is an ambitious and development-oriented company with best experts, which is strengthening its position on the integrated telecommunication services market. Our strategy is based on development of new services and business models, as well as on consolidation of markets at which we are present and seeking new strategic opportunities. We will continue to offer our customers the most up-to-date and comprehensive telecommunications services in a world-class network, while we will also continue to invest our efforts into strengthening the market position in all segments of the operations” said Mr Rudolf Skobe, President of the Telekom Slovenije Management Board.

The Supervisory Board was informed on Telekom Slovenije, d.d. submitting a non-binding offer in the privatisation procedure of Telekom Srbija a.d.

The Telekom Slovenije Group’s business expectations for 2015 are a net operating profit of EUR 66 million, an EBITDA of EUR 198 million, and a CAPEX of up to EUR 107 million.

Documents

Public releases​

03.08.2015

Telekom Slovenije Beefing Up Its Network and Preparing for the Technology of the Future

13.07.2015

Telekom Slovenije Mobile Subscribers Can Now Insure Their Mobile Devices Purchased at Telekom Sales Centres

18. 6. 2015

Telekom Slovenije Once Again with a Great Deal on Data Transfer in Croatia

Business news

Telekom Slovenije received the approval for the merger of One and Vip in Macedonia
Telekom Slovenije received the decision of the Macedonian Commission for Protection of Competition, allowing the merger of operators ONE DOOEL Skopje, which is a part of the Telekom Slovenije Group and VIP OPERATOR DOOEL Skopje, the Macedonian subsidiary of the Telekom Austria Group. The approval of the Macedonian Commission for Protection of Competition is based on specific obligations, including the obligation that the merged company shall provide access to Macedonian mobile virtual network operators (MVNOs). The closing of transaction is expected in the last quarter of 2015.

The Supreme Court approves request for review of Telekom Slovenije against the decision of the Administrative Court in the matter of ISDN-ADSL
Telekom Slovenije received a decision from the Supreme Court of the Republic of Slovenia under ref. no. Ips 58/2015-2 issued on 14 July 2014, in which the Supreme Court approves the request for review filed by Telekom Slovenije, d.d. against the decision of the Administrative Court of the Republic of Slovenia I U 1871/2013-30 from 9 December 2014. In this decision the Administrative Court rejected the claim of the plaintiff Telekom Slovenije against the defendant Slovenian Competition Protection Agency (SCPA) for the annulment of the SCPA’s decision from 25 October 2013 under the ref. no. 3072-2/2004/132, in which the SCPA establishes that in the period from 1 December 2002 to 5 September 2005 Telekom Slovenije, d.d. abused its dominant position on the bit stream broadband access interconnection market through copper network in the Republic of Slovenia (ADSL connection with prior purchase of ISDN ) and for termination of the proceeding at SCPA. The Supreme Court of the Republic of Slovenia ruled in favour of the request for review filed by Telekom Slovenije against the decision of the Administrative Court due to misapplication of substantive law, the contested decision is to be annulled, and that the matter is to be returned to the Administrative Court of the Republic of Slovenia for a retrial.

Telekom Slovenije Beefing Up Its Network
As part of its network upgrade this year, Telekom Slovenije is working hard on updating its base station system to upgrade its mobile network for LTE/4G technology. At the same time it is also upgrading its cable network with fibre-optics, as well as modernising and beefing up its backbone aggregation and core IP network. With a complete overhaul of its fixed and mobile networks, Telekom Slovenije will enjoy even greater capacities and ensure a gradual migration to a unified, all-IP network. This will make it possible to further integrate the network and various technologies into a single infrastructure with hybrid coverage, which will provide access to services through multiple technologies. As a result, Telekom Slovenije will be better poised to provide users with state of the art communications services and comprehensive communication in a world-class network.

Telekom Slovenije the first in Slovenia to obtain the Microsoft Cloud Solution Provider status
Telekom Slovenije is among the first in Europe and the first in Slovenia to become a Microsoft Cloud Solution Provider. This makes it possible for Telekom Slovenije to offer its business customers, small businesses, and enterprises alike, a comprehensive solution of Office 365 and Windows Intune services, with direct implementation and administration, including after-sales support and maintenance.

Long years' partnership with Ecoquiz , Reading Badge and Happy School
In the school year 2014/15 the Eco-school and Telekom Slovenije organized the seventh Ecoquiz, the national eco-knowledge competition, in which this year pupils tested their knowledge on bees, honey-producing plants, wood and energy. In addition, Telekom Slovenije promotes the concern for good Slovenian language among the youth. In this context the company has supported the Reading Badge project for 12 years, and this year’s best readers received the book Otroci sveta (Children of the World). The company also motivates the young for learning through the all Slovenian project Vesela šola (Happy School) - a project which spreads knowledge in a fun and attractive way.

Telekom Slovenije makes children's stay at the Debeli Rtič youth resort even more enjoyable
Telekom Slovenije made another donation this year for the renovation of the Martinček youth hostel, one of the four youth hostels at the Slovenian Red Cross’s youth health and summer vacation resort at Debeli Rtič. Every year the resort welcomes around 15,000 children and teens who are included in a variety of medical, sports and educational programs. This year Telekom Slovenije donated € 20,000 to the resort, as well as surprised the children staying there with small gifts.

Telekom Slovenije awarded the Trusted Brand
Telekom Slovenije this year again received two awards as the most trustworthy brand in the market. According to the Trusted Brand 2015 research, which has been carried out in Slovenia for the ninth year, Telekom Slovenije received the Trusted Brand award in the internet services segment as well as the Trusted Brand in the mobile telephony segment.

Ipko received Best Buy award
The Kosovo users selected the operator the Ipko company at the best provider of mobile telephony, mobile internet, digital television, and broadband internet. Ipko received Best Buy in all abovementioned categories for the period 2015/2016.

Avtenta renewed ISO 9001certificate, and Telekom Slovenije ISO 27001
In June, Avtenta renewed its international ISO 9001:2008 certificate, which mainly focuses on the efficiency of the quality management system for the fulfilment of the clients' requests. In parallel, Telekom Slovenije successfully passed the recertification according to the ISO 27001 standard, upgrading to the new version of the standard - ISO 27001:2013. The ISO 27001 certificate is a standard for a quality and secure information management and protection system which, besides the IT and protection of documents in the electronic form, focuses also on the protection of information in all other forms and elaborates the information management and protection systems within the organisation.

The Piran salt at Expo
The Piran salt from Soline company is one of the five items that Slovenia is exhibiting at Expo in Milan. In the first section of the Slovenian pavilion, the visitors of this world-class exhibition can find an attractive presentation of salt-making of the Piran salt, which is gathered daily between the ancient levees amidst the protected area of Sečovlje Salina Nature Park. The saltpans are one of the very few left in the world where salt is hand-harvested and the traditional form of salt production from the 14th century has survived to this very day.

Sales news

New price plans
Telekom Slovenije recently offered its customers several new subscription price plans. The TopTrio Brezžični (TopTrio Wireless) plan is intended for those users who live in places where there are currently no options for fixed broadband access, however Telekom Slovenije’s LTE/4G coverage is available. The Modri (Blue) subscription plan combines four services that meet all of our users’ communication needs in one monthly subscription plan: mobile telephone services, fixed broadband internet access, television, and fixed telephone services. Even more content is available in the TopTrio A+ price plan. The new EU Brezskrbni (EU Carefree) plan offers the customers unlimited calls and messaging to all Slovenian networks and 100 units for calls and messages in EU countries, while the data transfer is charged according to actual, but never more than €7 per month. For the ‘Itak’ subscribers there is Džabest Ruzak (Džabest Backpack) which, in addition to free usage of Deezer, unlimited calls and messages, and 5 GB data transfer in Slovenia, also includes 1000 units of mobile services in roaming in the countries of the EU region.

Mobile cash register as a cloud service
Telekom Slovenije in partnership with Datalab offers Mobilna blagajna (Mobile Cash Register) service for easier and more transparent cash register operation to small and medium size enterprises, while also taking into account the changes in legislation anticipating the introduction of certified cash registers. Mobilna blagajna is a comprehensive service for a simple keeping of cash transactions on Android devices, and its output bills are in compliance with the legislation. The Mobile Cash Register works on tablets and smartphones and enables a progressive, reliable, and friendly user experience in cash register transactions. The service is a replacement for receipt books, and enables simple bookkeeping and its usage, in addition to a mobile device, requires only mobile internet access and a portable printer.

New on SiOL TV
SiOL TV brings an improved user experience of watching television. SiOL-TV subscribers can watch a broad selection of TV contents with the 72-hour Live Rewind feature (Ogled nazaj) allowing them to catch up when they have the time within the three days after the broadcast. Subscribers can also access contents in the renewed DKino and DKino Hiti video-stores that include a rich selection of films and offer a transparent, innovative and a faster user interface. Users can record, stop, and continue watching later, as well as watch photos or recordings from a computer mobile phone on TV screen. The programme recommendation system makes it easier to select contents tailored to the user from the overall SiOL-TV contents.

GVO’s network now has 10,000 users connected
On 29 July 2015 GVO prepared the networks it administrates to connect its 10,000th user. In doing so, the company achieved an important milestone in administrating and maintaining its open-access broadband networks, which were built as part of a public-private partnership. Since 2011 GVO has been administrating and maintaining open-access broadband networks in Mislinjska and Dravska dolina, as well as in the municipalities of Ormož, Sveti Tomaž, and Središče ob Dravi. Since 2014 it has also been administrating networks in the Dolenjska region, as well as in the municipalities of Sevnica and Slovenjske Konjice.

Fresh image for Telekom sales centres
To make our customers feel even better when visiting us, we are refreshing the image of Telekom sales centres. The renovated centres give the impression of openness, modernity, and accessibility. In the recent period Telekom Slovenije opened new or renovated sales centres in in Ljubljana (Trg Ajdovščina), Celje, Nova Gorica, Murska Sobota, Koper, Velenje and Maribor. On Friday, 28 August, a renovated Telekom sales centre Citypark will open in Ljubljana, and by the end of the year we will also give a fresh image to Telekom centres in Kranj, Novo mesto and in Ljubljana at Vilharjeva street.

TSmedia issued a phone directory of Slovenia on DVD
TSmedia company issued a telephone directory of Slovenia on DVD with more than 860,000 phone numbers and other contact data of legal entities and individuals. The data search has been simplified with a new algorithm, while also made faster and more precise. New features of the ETIS phone directory spring 2015 are in particular the improved tool for a simple creation of travel orders and a data processing application, an upgraded view of companies on the map and the monthly data base update service.

Schedule of events

28 August 2015

Opening of a renovated Telekom sales centre Citypark in Ljubljana

1 September 2015

Festival Ljubljana: Telekom Slovenije is the sponsor of Turandot opera

9 – 11 September 2015

Telekom's International Carrier Meeting

End of September 2015

Opening of a revamped Telekom Sales Centre Kranj

24 September 2015

»Certified Cash Registers and Cash Operation« event at Gospodarsko razstavišče fairground in Ljubljana (organised jointly with the Finance newspaper)

September – November 2015

Regional meetings with business customers

September – October 2015

Exclusive telecommunications partner of the Gazela project 2015 (project for selecting the best Slovenian fast growing enterprise

We shall be pleased to reply to any additional questions, wishes or proposals, which you can send to us at the following addresses IR@telekom.si or PR@telekom.si.

If you have a colleague or partner who may be interested in reading our newsletter, we would appreciate it if you bring it to their attention. They can sign up at our corporate website www.telekom.si.