TLSG newsletter / Volume 3 / October 2015

Telekom Slovenije

The Telekom Slovenije Group made a record net profit over the first nine months, and a higher EBITDA and net operating revenue in the third quarter compared to the same period last year


Over the first nine months of this year the Telekom Slovenije Group generated a net profit of EUR 70.6 million, an increase of EUR 33.0 million on the net profit achieved in the same period in 2014. Also, the Telekom Slovenije Group generated EBITDA of EUR 160.2 million, while the EBITDA generated in the third quarter, after excluding the impact of Gibtelecom and One, was 16% higher than in the same period last year. In the third quarter, again excluding the impact of Gibtelecom and One on the Telekom Slovenije Group’s operations, the group net sales revenues were up 2% on the same period in 2014.

Compared to the results at the end of 2014, the Telekom Slovenije Group also improved the EBITDA margin over the first nine months of this year, to stand at 29.2%.

Over the nine months the Telekom Slovenije Group achieved net sales revenues of EUR 549.5 million. Here, the group is significantly increasing revenues from ICT services, which are up 85 percent compared to the same period in 2014. The achieved net sales revenues are not directly comparable with the same period of last year, since the revenues of One are only included in the report for seven months of this year. Total operating revenues of the Telekom Slovenije Group in the nine months are EUR 559.7 million.

Compared to 2014 the Telekom Slovenije Group has also recorded a user growth. The number of mobile users is up one percent, the number of TV connections 4.3 percent, and the number of fixed broadband connections 3.6 percent. For the purpose of data comparability, connections of the Macedonian company One, which has been merged with Vip, have been excluded from the comparison.

According to Rudolf Skobe, President of the Telekom Slovenije Management Board, “The achieved results of the Telekom Slovenije Group show that we are successfully implementing our established development strategy. We invest substantially in development and in this way provide our customers with the most up-to-date telecommunications services in Slovenia’s first network. We are increasing revenues in the ICT-service segment, implementing our human resource plan, while also strengthening our market position through consolidation in the markets at which we are present. The key competitive advantage of the Telekom Slovenije Group is and will remain top quality and comprehensive services, while the directions for the group’s further development will be established in the strategic business plan which we are preparing for the period until 2020.”

Documents

Public releases​

19.10.2015

Two Thirds of Data Transferred in Telekom Slovenije’s Mobile Network Transferred Using LTE/4G Technology

14.10.2015

SiOL TV Subscribers Have Watched a Million of On Demand Films

13. 10. 2015

Itak and the Association of Friends of the Youth Slovenia Continue Collaboration in the Power of Words Initiative

Business news

Telekom Slovenije acquired 100% share of Debitel telekomunikacije
On 14 October Telekom Slovenije became the owner of a 100% share of the company Debitel telekomunikacije. The total value of the transaction is EUR 15.8 million. Through the acquisition Telekom Slovenije will enhance synergies between the companies and continue to provide customers with top quality communications services in Slovenia's first network also in the future. The details on future role and development of Debitel will be set out in the Strategic Business plan of the Telekom Slovenije Group for the period 2016 – 2020. The company, which has about 90,000 users, will continue to be headed by its present director Borut Razdevšek.

34th regular Supervisory Board meeting of Telekom Slovenije
At its 34th regular meeting the Supervisory Board of Telekom Slovenije gave its approval to prolong the mandate of Igor Bohorč, MSc as the Chief Executive Officer of Blicnet, d.o.o., Banja Luka, Bosnia and Herzegovina, for a period of two years. The Supervisory Board also gave its approval on appointing Tina Česen to the position of the Chief Executive Officer at TSmedia, d.o.o., to begin her mandate on 1 December 2015 for a period of four years.

Telekom Slovenije and Telekom Austria Group established ONE.VIP Skopje
Following the approval on the merger of operators ONE DOOEL Skopje, which is a part of the Telekom Slovenije Group and VIP OPERATOR DOOEL Skopje, which is a part of Telekom Austria Group, issued by the Macedonian Commission for Protection of Competition on 8 July 2015, Telekom Slovenije, d.d. and Telekom Austria Group established a new joint entity ONE.VIP DOO Skopje. The newly founded company, in which Telekom Slovenije, d.d. has a 45% share and Telekom Austria Group a 55% share, was entered into the Central Registry of the Republic of Macedonia on 1 October 2015. The merger procedure is thus formally completed.

Moody's confirms current credit rating of Telekom Slovenije
Moody's international rating agency confirmed the credit rating of Telekom Slovenije at »Ba2« level. The outlook on the ratings remains negative. The confirmation of the company's credit rating reflects Moody's expectations that Telekom Slovenije will successfully complete the initiated process of refinancing its bond maturity in December 2016. The rating also takes into account the company's market position and its relatively low leverage levels. At the same time, the agency points to the highly competitive environment in which the company operates and a decrease in revenues as a consequence of lowering the prices and the regulation.

Telekom Slovenije this year again the main sponsor of Liffe Gazela project
The Ljubljana International Film Festival (Liffe) has for many years been a prime film event, at which Telekom Slovenije this year awarded the 20th Vodomec (Kingfisher) prize for the best young director from the Perspektive (Perspectives) section. Telekom Slovenije is also a long-term partner of the project for the selection of the best and fast growing enterprise – Gazele (Gazelle).

Telekom Slovenije and Samsung again donate to Europa Donna
For several years, Telekom Slovenije and Samsung have been marking pink October, breast cancer awareness month, with a special “Pink Ribbon” edition of a mobile phone, donating part of the proceedings to the Slovenian branch of the Europa Donna breast cancer association. This October they will donate to the association €10 for each Samsung Galaxy A3 Pink Ribbon sold. The phones are available exclusively at Telekom Sales Centres.

Telekom Slovenije awarded for investing in employee education
Within the Education Management conference Telekom Slovenije was placed among the 10 Slovenian companies and organisations that most invest in the knowledge and skills of their employees. Telekom Slovenije won the award for systematically investing in acquiring new know-how, enables the employees to try out and broaden the acquired knowledge, encourages acquisition and transfer of knowledge between the employees and fosters education of all employees. In 2014 in Telekom Slovenije 98 percent of the employees were included in the education.

Telekom Slovenije wins Best Buy Award
Telekom Slovenije won the prestigious 2015/2016 Best Buy Award in the category of users aged 15–35 (i.e. Millennials). This certificate is a proof that we offer our users in this age group the best value for their money and the best prices for mobile telephone services in the Slovenian market.

Swimming Pool at Thalasso spa Lepa Vida is one of the most spectacular in Europe
In the northern part of the Sečovlje Salina Nature Park lies a unique open air wellness centre - Thalasso Spa Lepa Vida. According to Swiss magazine Prestige, both its German and Swiss editions, Thalasso spa Lepa Vida was listed second among the most spectacular wellness pools in Europe. The open spa, which takes advantage of the healing characteristics of the sea water, brine (aqua madre) and the saltpans’ sea mud, persuaded the Swiss jury with heated sea-water pool surrounded by a unique panorama of the saltpans.

Sales news

»Mobilna blagajna« service is ready for certified cash registers
Telekom Slovenije’s Mobilna blagajna (Mobile Cash Register) service will make cash transactions simpler, allowing the users to issue invoices with a mobile device and a wireless printer while connected to a cloud-based e-accounting program. Telekom Slovenije provides business users, whether sole proprietors or small, medium-sized or large enterprises, with all the equipment and solutions necessary for transparent and cost-effective cash transactions, which are already prepared for the introduction of certified cash registers. Telekom Slovenije is offering two price plans: Mobilna blagajna PANTHEON RA at €10.90, and Mobilna blagajna PANTHOEN RC at €14.90 which supports coordinated operations of several cash registers and offices. In the current special offer, subscribers can use Mobilna blagajna free of charge until 1 December 2015.

Telekom Slovenije offered iPhone 6s and iPhone 6s Plus
On 9 October Telekom Slovenije began selling iPhone 6s and iPhone 6s Plus mobile which provide customers with excellent user experience. Both smartphones are available in Telekom Slovenije’s range in all three available memory capacities (16 GB, 64 GB, and 128 GB), as well as all four colours (space grey, silver, gold, and rose gold).Telekom Slovenije has a direct contract with Apple, and provides users with a comprehensive sales and after sales support.

Carefree Communication with price plans for Seniors
Telekom Slovenije is now offering completely carefree mobile communication with its Penzion Neomejeni price plan designed for pensioners and everyone over 60. The new Penzion Neomejeni price plan includes unlimited calls to all Slovenian networks, and unlimited text and multimedia messages for €16.95 per month. Users will pay for data transfer according to their usage, but never more than €3 per month. If data usage exceeds a 500 MB cap, the data rate will drop to 64 kbps uplink and downlink.

New TopTrio Kino bundle
Telekom Slovenije will now be offering movies through a new TopTrio Kino bundle. The new bundle includes the HBO option, internet access with speeds up to 10 Mbps, more than 125 channels, catch up TV for up to 3 days, and 60 minutes of calls to fixed networks in Slovenia. The monthly subscription fee is €42.95 over Telekom Slovenije’s xDSL and FTTH networks, and €46.95 over an open broadband network.

The most popular Pickbox films and series available to SiOL TV subscribers
On 21st September Telekom Slovenije was the first in Slovenia to offer its Siol TV subscribers a new videostore with contents on demand from the Pickbox service. Pickbox video contents include films and series which include leading Hollywood studios’ hits, Better Call Saul, House of Cards, Transparent, Vikings, etc. SiOL TV users who have the BOX communicator can find the Pickbox videostore at programme space 242. The monthly subscription fee to Pickbox programme is 7 euro.

TV The Regional ABA Basketball League Broadcast Exclusively on SiOL TV
Telekom Slovenije has acquired exclusive rights to broadcast the matches in the Adriatic region’s ABA basketball league, which includes three Slovenian teams, namely Tajfun, Krka, and Union Olimpija. That means that SiOL TV subscribers will be able to catch all games featuring Slovenian ABA-league teams in the 2015/16 and 2016/17 seasons, and an additional match in each round.

The Telekom Slovenije Premier League Digital Album Now Available to Football Fans
Football enthusiasts will now be able to follow the elite Slovenian Premier League through the Telekom Slovenije Premier League Digital Album. The digital album, available online at www.prvaliga.si/album, is a place where fans can collect 191 virtual stickers, as well as access a wealth of information on the matches and clubs in the Telekom Slovenije Premier League. Those who fill up their whole album will take home practical football prizes.

TSmedia cooperates with a targeted marketing provider from Germany
TSmedia has signed up for cooperation with a leading German provider of targeted advertising nugg.ad. With the use of the advanced high-tech advertising solution, advertisers can from now of select and reach specific target groups at Planet Siol.net, najdi.si, bizi.si and itis.si.

Avtenta selected to revamp procurement process with the BusinessConnect solution
Avtenta was entrusted by SENG, d. o. o. to supply the electronic document BusinessConnect system for Soške elektrarne Nova Gorica. The procurement solution is composed from multiple sections and procedures, beginning with gathering information/offers to the monitoring of the entire procurement procedure.

Schedule of events

11 - 22 November 2015

26th International Ljubljana Film Festival (Liffe)

11 November 2015

Certified Cash Registers conference (organized by: Chamber of Commerce and Industry of Slovenia)

12 November 2015

Presentation of SAP ERP to business customers (organised by: Telekom Slovenije an Avtenta)

19 November

The 9th Pantheon Conference: Mobile cash registers and e-accounting (organised by: Datalab)

25 November 2015

Certified Cash Registers conference (organized by: Finance newspaper's Business Academy and Telekom Slovenije)

25 November 2015

Pre-New Year reception for business partners of the Telekom Slovenije Group

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.

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