Annual report 2012

Investments in fixed assets and financial investments

Investments in fixed assets

Despite the adverse economic situation, the Telekom Slovenije Group earmarked EUR 128.1 million for the construction, modernisation and development of networks and services in 2012, an increase of 39 % on 2011 and representing 16.2 % operating revenues. Three quarters of the aforementioned amount was earmarked for investments in Slovenia and the remainder for investments in South-Eastern Europe.   

The majority of last year’s investments were earmarked for the construction and modernisation of networks, in particular third and fourth generation mobile networks, the shortening of the local loop and the construction of local copper-based networks and fibre optic networks for the needs of broadband internet access. Other investments were earmarked for new services such as cloud computing, digital advertising, management services, etc. Telekom Slovenije’s investment policy reflects its focus on the technological transformation of the Company, which represents the basis for its continued development and the provision of new services.

Among the most important investments in Slovenia is the project to introduce fourth generation LTE mobile telecommunications technology. In this way, the latest and significantly faster mobile broadband data services will be offered in Mobitel’s network, and will initially cover all major Slovenian cities. The largest investment on the markets of South-Eastern Europe was the construction of the Group’s own fibre optic backbone network, which will soon be linked in a regional fibre optic network.

Investments in fixed assets

in EUR thousand 2012 2011 Index 12/11
Telekom Slovenije 78,717 60,559 130
Other companies in Slovenia 18,874 8,607 219
Ipko - Kosovo 16,695 11,826 141
Companies in Macedonia 9,131 5,834 157
Other companies in South-Eastern Europe 4,676 5,140 91
Total 128,092 91,966 139

Financial investments

Telekom Slovenije made the following financial investments in subsidiaries in the total amount of EUR 11.47 million:

  • an increase in the capital of Avtenta in the amount of EUR 3.2 million;
  • an increase in the capital of Aneks in the amount of EUR 910,000;
  • an increase in the capital of SIOL Podgorica in the amount of EUR 2.01 million;
  • an increase in the capital of Soline in the amount of EUR 147,000;
  • an increase in the capital of TSmedia in the amount of EUR 5 million; and
  • an increase in the capital of SiOL Sarajevo in the amount of EUR 200,000.

Agreements were also signed with minority shareholders on the purchase of a 30 % participating interest in Aneks and a 25 % participating interest in Primo.