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March 1, 2021
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Telekom Romania: Positive performance for mobile operations, fixed revenues registered a decrease

Telekom Romania Communications and Telekom Romania Mobile Communications announce key performance indicators for the first quarter of 2016, ended March 31st, 2016, as reported on Wednesday by OTE Group.

“The first three months of 2016 reflect a positive performance in terms of revenues for mobile operations, while fixed revenues registered a decrease, partially due to the downward trend on the fixed voice segment. The fixed-mobile convergent proposition, under the MagentaONE offers, remained an important growth driver for Telekom Romania, with an increase by 30% in the quarter compared to the end of 2015. In addition, mobile data generated a solid growth of our mobile broadband customer base, on both residential and business segments”, said Anastasios Tzoulas, Chief Financial Officer, Telekom Romania operations.

 

Telekom Romania Communications

 

The financial results reported by Telekom Romania Communications for Q1 2016 show a decrease in revenues, but a positive trend on key areas such as fixed-mobile integrated offers and TV. In Q1 2016 revenues reached 137.1 million euros, 7.8% lower than in Q1 2015. ProForma EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization, excluding impact of restructuring plans) for Q1 2016 was of 20.5 million euros, 37.5% lower compared to Q1 2015.

Telekom Romania Communications reached 270,000 customers for MagentaONE fixed-mobile convergent offers adding more than 62,000 in the quarter. This growth generated an increase of mobile revenues by 83% in Q1 2016 vs. Q1 2015.

On the TV segment, customer base increased by 2.5% in Q1 2016 compared to Q1 2015, reaching 1.449 million, while corresponding revenues remained relatively stable, registering a slight decrease of 1% in Q1 2016 vs. Q1 2015. Revenues generated by IPTV RGUs had the highest growth compared to other TV technologies in Q1 2016 vs. Q1 2015. Regarding FTTx, the focus remained on further increasing the penetration of this technology in the already covered regions. Customers opting for this technology benefit of speeds of up to 1 Gbps for broadband and of interactive television (IPTV) services.

 

Telekom Romania Mobile Communications

 

Telekom Romania Mobile Communications registered total revenues of 113 million euros in Q1 2016, marking a 9.5% increase versus Q1 2015. Service revenues in the quarter amounted to 77.1 million euros, down by 1.9% versus Q1 2015.

Mobile broadband service revenues registered an increase by 6.4% in Q1 2016 compared to the same quarter of 2015, while the mobile broadband customer base increased by 15.3% in the quarter as compared to the same period last year. The total number of 4G customers increased 6 times (629%) in Q1 2016 versus Q1 2015, while 4G data traffic increased almost 8 times (780%) in Q1 2016 versus the same quarter last year. In addition, 93% of the terminals sold by Telekom Romania Mobile Communication in Q1 2016 were smartphones.

At the end of Q1 2016, the total customer base (including Zapp) stood at 5.654 million, down by 4% compared to Q1 2015. Postpaid customer base remained relatively stable in the quarter, up by 0.8% compared to Q1 2015, accounting for 29% of the total customer base.

The business segment maintained its positive evolution in Q1 2016, with an increase in customer base of 5.5% on a yearly basis, and with a strong increase in mobile broadband customers base, of 16.7% in Q1 2016 versus Q1 2015.

 

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