Business News

Simobil Operating Profit Down 6.2% to EUR 24M in 2010

Ljubljana, 23 February (STA) - The operating profit of Slovenia's second-largest mobile operator, Simobil, fell 6.2% in 2010 to EUR 24m, despite a 5% rise in subscriber numbers, the company said on Wednesday.

Simobil saw its annual revenues fall by 3.4% to EUR 174m last year owing to a drop in revenues from roaming and interconnections revenues caused by lower prices in these segments.

The drop in revenues came in spite of a year-on-year rise in the number of subscribers from 589,400 to 618,900.

The increase in the number of subscribers meant that Simobil increased its market share last year to 29.2%, which is 1 percentage point more than a year earlier.

Earnings before interest, tax, depreciation and amortisation (EBITDA) at the company that is part of the Telekom Austria group fell 6.5% to EUR 45.1m.

The company has not yet reported its net profit for last year. In 2009, its net profit stood at EUR 29m.

Meanwhile, net profit at Simobil's parent Telekom Austria rose 105.7% to EUR 195.2m in 2010, according to Wednesday's earnings release from the group.

The group explained that the increase in profit was foremost caused by high impairment charges that slashed profit a year earlier.

Similarly to Simobil, the group saw an increase in the number of subscribers, by 5% to 19.8m, and a drop in revenues, by 3.1% to EUR 4.65bn.

It blamed the latter on growing competition and regulatory cuts in roaming and interconnection prices.

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