Wednesday , November 25 2020

Romania's Telekom announced earnings and a decline in profit in the third quarter due to a decline in fixed line | Economica.net



Romtelecom's past as a national fixed telephone monopoly continued to haunt the Romanian Telekom group, which was controlled by Germany from Deutsche Telekom through the Greek company Cosmote. The operator, which still has consistent shares in Romania, reported Thursday a 5.3% decline in revenue for the third quarter of this year compared to the same period last year, to 227 million euros from time to time EBITDA (before interest, taxes, depreciation and amortization) decreased 4.2% to 41 million euros.

In the first nine months of this year, Romanian Telekom revenues fell 2.1% to 691 million euros, while EBITDA fell 5.8% to 112 million euros.

The decline was caused by lower revenues from the fixed line business, while revenues from cellular communications and business services have evolved positively, according to the company.

Revenues from cellular communications grew by 6.1% in the third quarter compared to the same quarter last year to 117.9 million euros, largely reflecting higher revenues from converged fixed-to-mobile bids and growth in the cellular data segment, supported by unlimited mobile offers, according to Telekom's release.

The number of cellular service customers has grown by around 44,000 since the beginning of this year, reaching 5,302 million at the end of September. On land, the number of customers fell 93,000 to 1,772 million. The company also posted a slightly negative trend in broadband internet services, where the customer base dropped to 1.108 million, compared with 1.134 million at the end of last year.

The number of fixed-mobile integrated service customers grew by 44% in the third quarter compared to the same period last year, reaching 655,547 at the end of September 2018, and related revenues increased by 30.7%, Telekom Romania.

The TV service segment declined slightly, 1.4%, to 1.45 million, with a corresponding decline of 7.8% from one year to the next. On the other hand, the number of Internet TV customers (IPTV) increased by 16%.

The Romanian Telekom Group consists of Telekom Romania Communications (formerly Romtelecom), where the country of Romania still has 46% shares, and Telekom Romania Mobile Communications (formerly Cosmote Romania).

Romania Mobile telephones had 4.6 million subscribers at the end of September, down 2.7% mainly because the inactive SIM cards were deleted. Of the total number of customers, 36% have the remaining subscriptions and prepaid cards.

In the business segment, the customer base grew by 8.8% in the third quarter, Telekom representatives added.


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