Telekom Romania announces solid financial results for Q2 2015



Telekom Romania Communications


  • Over 124,000 customers for converged services;
  • Over 1.42 million TV customers, up by 2.7%;
  • TV revenues up by 5.8% in Q2 ‘15 vs. Q2 ‘14;
  • Revenues of 150.5 million Euros in Q2 ‘15, up by 0.5% vs Q2 ‘14.


Telekom Romania Mobile Communications


  • Revenues up by 3.3% vs. Q2 ‘14;
  • Business customer base up by 6.4% vs. Q2 ‘14;
  • Postpaid customer base up 4,3% vs. Q2 ’14;
  • Broadband revenues up 9.1 % vs. Q2 ’14;



Telekom Romania Communications and Telekom Romania Mobile Communications announce key performance indicators for the second quarter of the 2015 fiscal year, ended on June 30th, as reported today by OTE Group.


“The success of MagentaONE bundles is reflected by the steady growth of the converged services customer base, counting over 124,000 customers at the end of June, 36,000 more than in Q1. The business segment of the mobile operations continued to grow, posting a 6.4% customer base increase and an 18.8% increase in service revenues. Moreover, the dynamic roll out of FTTH technology continued in Q2. On the medium and long term, it is expected to generate positive results in terms of revenues and subscribers, as we anticipate both new and existing customers to opt for the increased benefits of this technology”, said Anastasios Tzoulas, Chief Financial Officer, Telekom Romania operations.



Telekom Romania Communications

The financial results reported by Telekom Romania Communications for Q2 2015 maintain the same trends as the ones reported for Q1 2015, with growth rates on key areas such as integrated offers and TV. Revenues stood at 150.5 million Euros, 0.5% higher than Q2’14. For H1 2015, revenues were 299.2 million Euros, 2.3% lower than in H1 2014. ProForma EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) for Q2 2015 was at 26.1 million Euros, 41.9% lower compared to Q2 2014, reflecting the impact of direct costs such as interconnection, devices & IT products, as well as a drop in other income. 


The number of customers with MagentaONE converged services exceeded 124,000, resulting to an increase of the relevant mobile revenues of 170% in Q2 2015 vs. Q2 2014.


TV services also recorded positive figures. Customer base grew by 2.7% in Q2 2015 to 1.42 million. Corresponding revenues for Q2 2015 were up 5.8% compared to Q2’2014. The intensive FTTH roll out, on which interactive TV services are based, led to a boost of IPTV subscribers, most of them coming from major cities. The TV customers have also access to over-the-top service for a full multi-screen experience. The strategy focused on TV is based on both delivering best in class technology and quality, as well as exclusive content such as the UEFA Champions League, UEFA Europa League, Formula 1 and NBA, available only on Dolce Sport. 


Fixed broadband subscribers in the quarter reached 1.207million. Broadband subscribers in areas where FTTH is available benefit of speeds of up to 1 Gbps.


At the end of Q2 2015, FTTx coverage reached 25 cities in total and a footprint of approximately 1.3 million households.


Telekom Romania Communications wholesale revenues increased by 2% compared to Q2’14.


The number of RGUs reported for fixed services was of 4.637 million in Q2 2015.



Telekom Romania Mobile Communications

Telekom Romania Mobile Communications registered stable results in Q2 2015, with revenues amounting to 105 million Euros, marking a 3.3% increase versus Q2 2014.  


The business segment grew by 6.4% on a yearly basis, while service revenues on the B2B segment increased by 18.8% in Q2 2015 versus Q2 2014, mainly due to mobile data use, which has doubled compared to the same period last year, posting a 101% increase.


This performance was determined by the success of the Telekom brand, with an increasing relevance as the ideal provider of mobile solutions for the business segment, as well as by the attractive voice and data offers including a smartphone or tablet.


In Q2, Telekom Romania Mobile Communications added in its business portfolio customers both from the public segment (such as ANAF and the Minister of Finances) as well as from the private sector, from various industries. Among them, Profipet Com SRL-the largest import and distribution company in the field of pets and equitation in Romania and Bulgaria and Blaxy Premium Resort & Hotel SA – a major player in the hotel industry, to which Telekom Romania Mobile Communications, together with Telekom Romania Communications, offered mobile and fixed services, as well as customized solutions.  


The total customer base (including Zapp) remained relatively stable at the end of Q2 2015, at approximately 5.9 million. Postpaid customer base increased by 4.3% compared to Q2 2014, reaching 28% of the total customer base.


ProForma EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) margin at 21.8% in Q2 2015, was down by 3.7 percentage points versus Q2 2014, reflecting the impact of regulatory measures. ProForma EBITDA reached 22.9 million Euros in Q2 2015. Blended ARPU increased by 1.2% in Q2’15 compared to Q2’14.


At the moment, Telekom Romania offers 4G coverage to 57% of the urban population and 32.4% of the total population (urban and rural). In Bucharest, 4G covers 98% of the city area, while in Brasov and Poiana Brasov, main tourist destinations, the coverage is 98% and 100% respectively. In addition, there is an advanced connection based on HSDPA 3G dual carrier technology that allows speeds up to 43.2 Mbps, in 271 towns and over 5,287 localities.