Telekom Romania Communications and Telekom Romania Mobile Communications announce key performance indicators for the second quarter of 2016, ended June 30st, 2016, as reported today by OTE Group.
“In a challenging environment, Telekom Romania is witnessing the first elements of growth, following the recent strategic initiatives. MagentaONE, the combined fixed and mobile service is steadily gaining ground; TV, offering unique content is growing and our rapidly improving 4G mobile service is attracting new customers, particularly in the postpaid business segment. However, the pressure of a strong competitive environment and other factors affected our growth and overall performance. Since the beginning of the year, we have registered a 20% increase of our fiber network coverage, reaching almost 1.7 million households, and we are now able to offer the most advanced communication services in the market to an ever expanding customer universe.
The lower take-up rate of standalone mobile services is partly offset by customers’ preference for convergent services. Our key priority for the next period is to deliver value to our customers by increasing fiber and 4G networks coverage, improving service quality and further simplifying customer interaction”, said Anastasios Tzoulas, Chief Financial Officer, Telekom Romania operations.
Telekom Romania Communications
The Q2 2016 financial results reported by Telekom Romania Communications show relatively stable revenues, a decline in EBITDA, and a positive trend in key areas such as fixed-mobile convergent offers and TV. In Q2 2016, revenues reached EUR 149.5 mn, 0.7% lower than in Q2 2015. Pro forma EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization, excluding impact of restructuring plans) for Q2 2016 was EUR 15.2 mn, 41.8% lower compared to Q2 2015. Operating expenses increased due to interconnection payments, network-related rent and TV content cost.
Telekom Romania Communications reached 310,314 customers for MagentaONE convergent offers, 126% more than in Q2 2015. As a result, revenues from mobile services increased by 78% in Q2 2016 versus Q2 2015.
On the TV segment, the customer base reached 1.461 million, up by 2.8% versus Q2 2015. Regarding FTTx, the fiber coverage increased to almost 1.7 million households, up from 1.4 million. Customers opting for this technology benefit from broadband speeds of up to 1 Gbps and seamless interactive television (IPTV) services.
Broadband subscribers (both fixed and mobile) decreased by 1.2% in Q2 2016 vs. Q2 2015, to 1.194 million, while revenues from fixed Internet also fell by 4% over the same period. Voice users (fixed and mobile) increased by 1%, to 2.183 million, due to the positive evolution of the mobile segment, while the fixed lines continued the downward trend, decreasing by 6.9% in Q2 2016, with corresponding revenues down by 16% in the same period.
Telekom Romania Communications wholesale revenues increased by 2.1 million euro in H1 2016 versus H1 2015 due mostly to new international business.
Fixed and mobile RGUs increased by 1% in Q2 2016 compared to the same period last year, reaching 4.838 million.
Telekom Romania Mobile Communications
Telekom Romania Mobile Communications registered total revenues of EUR 110.1 mn in Q2 2016, up 4.9% relative to the same period of last year, while service revenues fell 2.6%, to EUR 76.0 mn in Q2 2016.
In Q2 2016, Telekom Romania Mobile Communications’ total customer base decreased by 4.6%, to 5.6 million, out of which 29% are postpaid customers.
The total number of business customers increased by 5% compared to Q2 2015, reflecting the company’s targeted offers and synergies created following its rebranding, together with Telekom Romania Communications, under the Telekom brand.
Blended ARPU increased by 1.7% in Q2 2016.
Deterioration of prepaid margin due to intense telecommunications market competition along with costs associated with the expansion of the company’s business customer base led to a 5% decline in EBITDA against Q2 2015.
Currently, Telekom Romania Mobile Communications offers extended 4G coverage to 96% of the urban population in Romania, enabling customers to enjoy an enhanced experience of mobile broadband services. The extended 4G coverage is available for Telekom Romania existing and new customers of mobile service subscriptions and MagentaONE offers, residential and business, who benefit from 4G services included in their price plan.