Business news

Telekom Slovenije operating profit up 29% in first nine months (adds)

Ljubljana, 07 November (STA) - The Telekom Slovenije group posted a net profit of EUR 29.4 million in the first nine months, a 25% increase year-on-year despite a 6% drop in net sales revenue and total operating revenue.

The telco group generated EUR 507.4 million in net sales revenue in the first nine months, while total operating revenue reached EUR 511.4 million. Both figures are 6% lower than in the same period last year, shows an unaudited report published on the web site of the Ljubljana Stock Exchange.

The company said sales revenue was down due to the sale of Blicnet, which was completed in the second half of 2018. Excluding the operations of Blicnet, net sales revenue was down 4% on the same period in 2018.

Group profit before income tax, depreciation and amortisation (EBITDA) rose 9% to EUR 166.2 million and pre-tax profit (EBIT) was up 29% to EUR 35.9 million.

The group allocated EUR 116.1 million for investment in the January-September period.

The net sales revenue of the core company was down 6% to EUR 453.4 million, and operating revenue dropped by 6% as well to EUR 455.5 million.

Net profit rose 31% to EUR 29.6 million and operating profit was up by as much to top EUR 31.7 million.

The group's financial liabilities totalled EUR 460.8 million at the end of September and the liabilities of the core company stood at EUR 465.2 million.

Telekom Slovenije plans for this year include operating revenue of EUR 711.9 million at group level, gross profit of EUR 216 million and EUR 30.3 million in net profit.

The supervisory board got acquainted with the results on Wednesday.

The group employed 3,455 people at the end of September, of which 2,189 were employed by the core company.

At the end of September, the state held a 62.54% stake in the telco, while Slovenian Sovereign Holding held 4.25%, the state-run KAD fund another 5.59%, Slovenian and foreign shareholders 13.36%, Slovenian financial companies and funds 4.11%, foreign companies 5.94% and Slovenian companies 3.75%.

Telekom Slovenije's market capitalisation reached EUR 410.4 million at the end of September. The telco held a 6.3% market capitalisation share on the Ljubljana Stock Exchange.

In the January-September period, EUR 10.86 million worth of Telekom shares changed hands. The company's share reached its highest value in March, at EUR 68.20. On Wednesday, the share's stock market value was EUR 53.60.