Annual report 2012

Achievement of planned annual objectives

Fulfilment of plans for 2012

  • In the context of stiff competition, the regulatory environment and the adverse macroeconomic situation, the Telekom Slovenije Group will focus on the search for new revenue sources and primarily on reducing costs in the short term.
    • The commercial television channel Planet TV began broadcasting, while new mobile applications were developed and digital advertising services enhanced.
  • The Group will make the transition from a provider of predominantly infrastructure-related services to a provider of advanced IT and multimedia services.
    • Avtenta’s cloud computing services were enhanced, facilitating new services for the increased mobility of users. The services were linked to services for Telekom Slovenije’s business users.
  • The Group will achieve profitable growth on the markets of South-Eastern Europe through growth in revenues and coordinated operations within the Group.
  • The Group will transition to a contemporary telecommunications operator at the national and regional level, capable of providing a comprehensive range of state-of-the-art complex and multi-dimensional information and telecommunication services.
    • The majority of companies in South-Eastern Europe recorded an increase in revenues (One by 7 %, other companies by 3 %), or their revenues fluctuated at around the previous year’s level (revenues at Ipko were down 1 %). Ipko recorded a sharp increase in the proportion of revenues from retail sales of services.
    • At the Group level, we established a comprehensive risk management system and implemented projects such as the transfer of a standard IT solution for a prepaid system to One. We thus opened new opportunities for development with the transfer of previously developed services, which is also more cost efficient.
  • We will transform the Company from a national telecommunications operator into a regional operator with the necessary elements of a regional corporation, and establish a system of corporate governance to support that aim.
    • The Group continued with its strategic corporate governance project. 
  • We will carry out the financial consolidation of the Telekom Slovenije Group, including the optimisation of key financial indicators that will be comparable with those of similar companies operating in the region and the EU. In this way, we will also fulfil the requirements of the majority owner.
    • The Group recorded the first savings from the business process re-engineering project. We continued to optimise operations and rationalise all operating costs. This was seen in the fact that the majority of costs at the Telekom Slovenije Group level were lower compared with 2011. 
  • The Group adjusted its planned net profit at the beginning of 2012 due to changing operating conditions.
    • Planned net profit at the end of the third quarter was EUR 43 million, approximately equal to the net profit achieved at the end of the year (EUR 43.7 million). 

Plans for 2013

In December 2012 the Supervisory Board approved the Management Board’s proposal for Telekom Slovenije Group's business plan for 2013 and the next medium-term period, with projections until 2017. 

The business plan takes into account the current macroeconomic situation and economic forecasts for Slovenia and the region where Telekom Slovenije is present via its subsidiaries. It also takes into account industry trends, in particular trends in the operations of leading operators faced with declining revenues from traditional services. The Group is compensating for lost revenues with new, more complex ICT and multimedia services. It is also looking for new business models that will facilitate long-term sustainable operations according to the principles of sustainable development. The priorities in implementing the business plan remain the stabilisation of revenues and their growth in the future, and the reduction of costs. In this way, Group companies will be able to maintain and enhance the positive economic and social impacts of their operations in the future.

Key objectives for 2013:

  • To develop segments that generate new revenue sources (Slovenia).
  • To maintain market shares in the fixed and mobile voice telephony segments, and in the fixed broadband access segment (Slovenia). 
  • To increase market shares and revenues (South-Eastern Europe).
  • To continue optimising all types of costs.
  • To increase productivity with the aim of restructuring from a technologically oriented company to a sales and service oriented company.
  • To continue optimising the employee structure and labour costs.
  • To invest with the aim of providing fully convergent services in the areas of voice and multimedia communications, information and entertainment in the fixed and mobile networks. In this way we will provide all user segments more than just access to telecommunication services; we will provide them access to comprehensive content.

Operating expectations of the Telekom Slovenije Group for 2013:

  • investments: around EUR 130 million,
  • EBITDA: up to EUR 245 million, and
  • net profit: EUR 50 million.