“The first nine months of 2015 reflect stability on certain areas, such as the mobile segment, steady growth rates on flagship segments namely convergent services and TV, but also a drop on traditional areas as fixed voice. On the mobile segment, we continue to register constant growth of our postpaid customer base, with double-digit growth in terms of overall gross additions, residential and business”, said Anastasios Tzoulas, Chief Financial Officer, Telekom Romania operations.
Telekom Romania Communications
Financial results reported by Telekom Romania Communications for Q3 2015 maintain the same growth trends for key areas such as integrated offers and TV, but also reflect a drop on other segments with direct impact on revenues and EBITDA. Thus, revenues amounted to 143.5 million Euros in Q3 2015, down by 5.2%, as compared to Q3 2014. For the first 9 months of this year, revenues were 442.7 million Euros, registering a decrease of 3.3% compared to the same period of last year.
The number of customers with MagentaONE converged services exceeded 160,000, resulting an increase of the relevant mobile revenues of 201% in Q3 2015 vs. Q3 2014.
Broadband subscribers in the quarter reached 1.2 million, down by 2.9% compared to Q3 2014 due to areas where it is not available optical infrastructure. To leverage this aspect, the dynamic roll-out of FTTH network, which provides up to 1 Gbps Internet speed, will continue in the following period, too. On the medium and long term, it is expected to generate positive results in terms of revenues and subscribers.
The drop of fixed voice subscribers, by 0.2% in Q3 2015 vs Q3 2014, and subsequently of revenues, is in line with the general downward trend on this segment.
Telekom Romania Mobile Communications
Telekom Romania Mobile Communications registered stable results in Q3 2015, with revenues amounting to 109.2 million Euros, marking a 2.1% increase versus Q3 2014.
The business segment grew by 7.7% on a yearly basis, while service revenues on the B2B segment increased by 18.3% in Q3 2015 versus Q3 2014. During the past three months, Telekom Romania Mobile Communications added in its business portfolio several strategic accounts, such as Bank Leumi and Damen Shipyards Galați.
The total customer base (including Zapp) at the end of Q3 2015, was of approximately 5.7 million, down 2.9% compared to Q3 2014. The overall postpaid customer base increased by 4.8% compared to Q3 2014, reaching 29% of the total customer base, while the postpaid gross additions registered a 15.5% increase.
ProForma EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) margin was 22.3% in Q3 2015, down by 1.5 percentage points versus Q3 2014. ProForma EBITDA reached 24.4 million Euros in Q3 2015. Blended ARPU increased by 0.9%.
At the moment, Telekom Romania offers 4G coverage to 57% of the urban population and 32.4% of the total population (urban and rural). In Bucharest, 4G covers 98% of the city area, while in Brasov and Poiana Brasov, main tourist destinations, the coverage is 98% and 100% respectively. In addition, there is an advanced connection based on HSDPA 3G dual carrier technology that allows speeds up to 43.2 Mbps, in 271 towns and over 5,287 localities.