Business News

Telekom with Half-Year Net Profit of EUR 4.3m

Ljubljana, 26 August (STA) - Following a loss in the first quarter, the group around telco Telekom Slovenije ended the first six months of 2010 with net profit of EUR 4.3m, which is still a 85% drop year-on-year. Revenues were up by 1% to EUR 414.3m, according to unaudited results released by the company on Thursday.

The group's biggest companies, Telekom and mobile operator Mobitel, recorded a decrease in revenue. Telekom's was down 4% to EUR 192.23m and Mobitel's by 5% to EUR 190.53m. Revenues were up the most abroad, especially in Kosovo, by 24% to EUR 30.11.

Telekom's report further states a pre-tax profit (EBITDA) of EUR 132.2m, down 5% on the same period last year, and a 45% drop in earnings before interest and tax (EBIT) to EUR 25m.

The Telekom group earmarked EUR 43.5m for construction, modernisation and development in the first half of the year, which means it remains one of the biggest investors in the country.

The number of classic telephone connections continued to decrease at home and increase abroad, in both cases by 5%. The number of broadband connection was meanwhile up by 2% to 328,500. Telekom had 545,000 users at the end of June, while Mobitel's user figures stayed level, at 1,179,000.

Telekom Slovenije chief supervisor Tomaz Berginc said following Wednesday's session of the supervisory board that supervisors' proposals to the management are starting to get implemented successfully.

"The management, which was fully constituted only three months ago, has set its priorities well and has approached its goals in a determined way. This makes us confident that it will also carry out its priority task in the coming months, which is the restructuring and consolidation of its companies in Slovenia," a press release by Telekom quotes Berginc.

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