Business News

Simobil's Revenues Rise, Profit Drops

Ljubljana/Vienna, 17 August (STA) - Simobil, Slovenia's no. 2 wireless carrier, posted revenues of EUR 47.3m for the second quarter of 2011, up 12% over the year before. However, operating profit dropped 7.9% to EUR 5.9m.

Pre-tax profit (EBITDA) inched up 3.1% to EUR 12m, according to the earnings report of Simobil's owner, Telekom Austria, released on Wednesday.

Telekom Austria group returned to profit after two quarters of losses, posting a net profit of EUR 20m for the quarter on sales that were down 5.1% to EUR 1.11bn.

Simobil expanded its user base by 6.9% to 632,700 users, increasing its market share by 1.7 percentage points to 29.9% year-on-year.

Simobil recently became the first Slovenian carrier to offer subsidised Apple iphones, with the report saying that the share of subscribers had risen to 72.3% thanks to "efficient marketing activities".

The carrier has been on the hook recently for introducing a flat annual EUR 9.78 fee for "SIM card management", opening itself to criticism that it is charging users for services that they rarely or never use.

The Market Inspectorate said Tuesday it would be looking into Simobil's practice based on user complaints.

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