Ljubljana, 09 May (STA) - The group around telecoms incumbent Telekom Slovenije posted a net profit of EUR 10.1 million in the first quarter of the year, up 4% year-on-year, while net sales revenue was down 6% to EUR 172 million.
Total operating revenue was also down by 6% to EUR 172.8m, shows the quarterly report for the group and core company released on Thursday.
The report notes that revenue in the first quarters of 2019 and 2018 is not directly comparable, as the former does not include the revenue of the Bosnian subsidiary Blicnet, which was sold in 2018.
The group's earnings before interest, taxes, depreciation and amortisation (EBITDA) were up by 8% compared to the first quarter of 2018 to EUR 56.5 million. Operating profit stood at EUR 11.8 million, a 15% year-on-year increase.
The core company saw its operating revenue drop by 5% to EUR 157.5 million, EBITDA were up by 13% to EUR 49.9 million and net profit increased by 30% to EUR 12.6 million.
In the first three months of the year, Telekom Slovenije spent EUR 27.7 million for investment, the report adds.
The group has projected to generate an annual net profit of EUR 30.3 million this year, which is close to last year's figure, while total investments are expected to stand at EUR 211.9 million.
"Telekom Slovenije is facing strong competition, regulatory effects and price-sensitive users both on the complex inter-operator European market and the domestic telecommunications market," the company said in the report.
Telecommunications users demand high quality of service and the lowest possible prices, while the market is getting increasingly saturated, which reduces the manoeuvring space for keeping the existing users and attracting new ones, it added.