Telekom Romania announces stable financial performance for Q1 2015


Customers opting for integrated offers doubled in only 3 months


 Telekom Romania Communications


  • Over 88,000 customers for converged services;
  • 3.2% more TV customers, up to 1.414 million;
  • TV revenues up by 9.1% yoy;
  • Revenues of 148.7 mil. Euros in Q1 2015.


Telekom Romania Mobile Communications


  • Business customer base up by 6.8% vs. Q1 ‘14;
  • Postpaid customer base up 7.2 % vs. Q1 ’14;
  • Broadband revenues up 13.3% vs. Q4 ’14;
  • Mobile data traffic: 48.19% increase yoy.

Telekom Romania Communications and Telekom Romania Mobile Communications announce key performance indicators for the first quarter of 2015 fiscal year, ended March 31st, 2015, as reported today by OTE Group.


“Our main focus for 2015 is the development of our networks, both FTTH and 3/4G, as well as the backhaul implementation within the RoNet project. State of the art infrastructure enables us to deliver the best services to our customers, capitalizing on our top TV content and experience, speeds of up to 1Gbps for Internet users and an extended coverage for 4G users. The number of customers opting for integrated offers almost doubled in only three months, thus showing the need for unlimited communication and entertainment, through one operator, on a single invoice”, said Anastasios Tzoulas, Chief Financial Officer, Telekom Romania operations.


At the end of Q1 2015, FTTx coverage reached 23 cities and more than 1 million households footprint. On the mobile side, due to the expansion efforts, 4G coverage increased to 32.4% of the total population (urban and rural), as part of the efforts to double the 4G coverage by the end of 2015.


Regarding the backhaul infrastructure, Telekom Romania announced at the end of April that the first phase of RoNet, the project planning, has been successfully finalized and that the implementation phase will start once all necessary approvals from the Ministry of Information Society are obtained.


“Also, in line with our strategy of divesting our non-core activities, we recently launched a tender for the sale of 24 properties in 8 big cities of Romania. The amount we expect to obtain following this transaction will be invested in the core business of Telekom Romania”, Mr. Tzoulas added.


Telekom Romania Communications


The financial results reported by Telekom Romania Communications for Q1 2015 show stability, with growth on key areas such as integrated offers and TV. Revenues stood at 148.7 million euros, 5.1% lower than Q1’14. ProForma EBITDA for Q1 2015 was at 32.8 million Euros, 14.8% lower compared to Q1 2014, reflecting the impact of the termination fee reduction imposed by the regulatory authorities. 


Convergent services customers exceeded 88,300. This growth generated an increase of mobile revenues of 110% in Q1 2015 vs. Q1 2014.


Positive figures were reported also for TV services. Customer base grew by 3.2% in Q1 2015 to 1.414 million. Corresponding revenues for Q1 2015 were up 9.1% compared to Q1’2014. The focus remained on the deployment of FTTH technology which translates into superior TV services such as IPTV combined with OTT 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.  


Broadband revenues in the quarter remained stable while broadband subscribers (including data mobile ones) reached 1,217million. Broadband subscribers in areas where FTTH is available benefit of speeds of up to 1 Gbps.


On the business segment, revenues from IT&C projects were up 22% compared to Q1 2014, reflecting the focus on delivering turn-key solutions for companies.


Telekom Romania Communications wholesale revenues decreased by 18.8% compared to Q1’14, partly offset by international transit revenues.


RGUs, at 4,671 million for Q1 2015, remained relatively stable compared to the same period last year.


Telekom Romania Mobile Communications


Telekom Romania Mobile Communications registered relatively stable results in Q1 2015. Revenues amounted to 103.2 million euro, marking a 12.7% decrease versus Q1 2014; however, excluding the impact of regulatory measures, revenues would have been up by 10%.


The business segment grew by 6.8 % on a yearly basis, while service revenues increased by 6% in Q1 2015 versus Q1 2014, mainly due to mobile data showing growing trends in the B2B segment.


On the Strategic Accounts segment, Telekom Romania Mobile Communications registered a 7% increase in the customer base in Q1 2015 versus Q1 2014, mainly due to the addition of accounts from the public sector, such as the The Official Gazette of Romania and Radio Romania.


The company also registered significant customer additions from the private sector, offering, along with Telekom Romania Communications, mobile solutions as well as fixed services and tailored solutions: the BAUPARTNER group of companies, an important player on the business constructions segment; FSA Romania, part of the FSA France group, one of the most important suppliers of turnkey solutions in the assembly lines field; Polaris Hospitality, the largest recovery private hospital from the NV of Romania; Atraxo, member of FuelPlus Group , provider of leading software solutions to the global aviation industry.


Total customer base (including Zapp) remained stable at the end of Q1 2015, at approximately 5.9 million. Postpaid customer base increased by 7.2% compared to Q1 2014, reaching 27.7% of the total customer base.


Mobile data traffic maintained the positive trend, registering an approximately  48% increase in  Q1 2015 vs. Q1 2014, while the total number of postpaid 4G customers increased by 45% in Q1 2015 versus the previous quarter.  


Pro Forma EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) margin reached 21.7% in Q1 2015, down by 0.9 percentage points versus Q1 2014, reflecting the impact of regulatory measures. Pro Forma EBITDA reached 22.4 million euro in Q1 2015.


At the moment, Telekom Romania offers 4G coverage to 50% of the urban population and 32.43% 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. Customers who are not  in 4G covered areas can benefit from  the 4G Experience, 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.


Mobile operations of the OTE Group provide telecommunications services to approximately 15.3 million customers in SE Europe.