Annual report 2012

Highlights of the Telekom Slovenije Group

In 2012 the Telekom Slovenije Group:

  • generated EUR 793.1 million in operating revenues, down 3.8 % on the previous year;
  • generated a net profit of EUR 43.7 million, up 28 % on 2011;
  • generated EBIT of EUR 62.5 million, down 1.1 % on the previous year;
  • reduced its net financial debt as at 31 December 2012 by 15 % relative to 2011 and improved its NFD/EBITDA ratio from 1.52 to 1.37;
  • continued to optimise costs, comprehensively restructure operations and optimise processes for the long-term, sustainable development of the Telekom Slovenije Group;
  • introduced a number of new features and improvements to services and networks to increase user mobility such as: 
    • upgrades to the mobile broadband network with Long Term Evolution (LTE) technology,
    • new user applications for mobile devices and the Group’s own Planet TV television station,
    • an expanded range of management and cloud computing services, and
    • other new features and improvements to services and networks; 
  • strengthened synergies between Telekom Slovenije Group companies (e.g. the establishment of a prepaid system at One with the transfer of a standard IT solution from Telekom Slovenije); and
  • signed the ETNO’s new Corporate Responsibility Charter. 


In 2013 the Group will: 

  • provide its users access to the most state-of-the-art telecommunication services and related IT and multimedia services, and facilitate user mobility; 
  • strengthen synergies within the Group;
  • increase revenues from the more complex IT and multimedia services;
  • continue to optimise procurement costs, and increase the efficiency of investments and work; and
  • manage the economic, social and environmental impacts of its operations in accordance with sustainable development principles. 


Conditions in the telecommunications sector that characterise the Telekom Slovenije Group’s operations: 

  • Revenues generated by the primary services of fixed and mobile telephony are declining at the majority of leading operators without investments on developing markets outside the European Union, owing to the adverse macroeconomic situation in the context of slowing growth in fixed broadband connections.
  • Operators are responding to the aforementioned trends by reducing costs and by expanding operations in the long term to the growing segments of television, mobile broadband services, digital advertising, management services and cloud computing services. Telekom Slovenije Group companies are also following these trends.
  • Pressure to lower prices is being driven by the macroeconomic situation and the resulting fierce competition on the market.

Key financial performance indicators

in EUR thousand / % 2012 2011 Index 12/11
Operating revenues 793,057 824,507 96
EBITDA 241,563 255,616 95
EBITDA margin 30.5 % 31.0 % 98
EBIT 62,531 63,250 99
Return on sales – ROS
(EBIT/net sales revenues)
8.0 % 7.8 % 103
Net profit/loss 43,687 34,011 128
Assets 1,554,737 1,575,314 99
Equity 814,717 815,275 100
Equity ratio 52.4 % 51.8 % 101
Return on assets – ROA (in %) 2.8 % 2.1 % 133
Return on equity – ROE (in %) 5.7 % 4.4 % 129
Net financial debt 330,287 388,591 85

Other economic performance indicators

in EUR thousand (unless stated) / % 2012 2011 index 12/11
Distributed economic value 604,410 610,998 99
Value added 227,766 223,484 102
Value added per employee (in EUR) 47,032 46,554 103
Investment in property, plant and equipment (CAPEX) 128,092 91,966 139
EBITDA – CAPEX 113,471 163,650 69
Ratio of (EBITDA - CAPEX) to EBITDA (cash margin) 47.0 % 64.0 % 73
Labour costs 157,213 150,160 105
Corporate income tax 2,575 14,807 17
Payments to owners – dividends 45,538 22,336 204

Social indicators – employees

in EUR thousand 2012 2011 index 12/11
Number of employees 4,724 4,760 99
Employee turnover at companies in Slovenia 4.5 % 2.8 % 161
Direct training costs 2,330 2,161 108
Number of training hours per employee 28.7 22.0 130

Social indicators – community

*Sum of fixed voice telephony connections and VoIP services.
  2012 2011 index 12/11
Number of mobile telephony connections 2,096,754 1,992,311 105
Number of fixed telephony connections* 676,909 695,800 97
Number of broadband connections 341,083 340,960 100
Funds earmarked for sponsorships and donations as a proportion of operating revenues 0.5 % 0.7 % 71

Environmental indicators (Telekom Slovenije)

*Telekom Slovenije’s direct environmental costs include the costs of electricity and fuel for the car fleet and heating, and the costs of cleaning and municipal services.
  2012 2011 index 12/11
Electricity consumption (in million kWh) 77.5 80.0 97
Direct environmental costs* (in EUR million) 12.2 11.9 102


Operating revenues (in EUR million) and number of employees of the Telekom Slovenije Group

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EBITDA and EBITDA margin (as a percentage of operating revenues) of the Telekom Slovenije Group

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EBIT and net profit (in EUR million) of the Telekom Slovenije Group

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Structure of the Telekom Slovenije Group's equity and liabilities and net debt (in EUR million)

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Investments in property, plant and equipment (CAPEX) in EUR million, and as a proportion of operating revenues

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