Telekom Romania’s earnings plunge by 20% in second quarter

Telekom Romania group, indirectly controlled by Deutsche Telekom, announced that its adjusted EBITDA reported under IFRS decreased by 20.1% in the second quarter this year (Q2) compared to the same quarter of the previous year, to EUR 29.8 million.

The results mainly reflect lower revenues generated by the fixed and mobile services. However, the EBITDA rose by 12.1% over the previous quarter, confirming the positive developments since Q4, 2018, the company commented.

The consolidated revenues of the Telekom Romania group increased by 6.7% in Q2 compared to Q1 but decreased by 2.8% in year-on-year terms, to EUR 231.2 million. The drop in revenues, compared to last year, reflects the sale of mobile phones, as Telekom Romania shifted its focus to selling services like #Netliberare and #BusinessLiber.

The revenues from fixed services in Q2 were EUR 59.3 million, down 5.3% compared to the same period last year, especially as a result of lower revenues from fixed voice. However, the revenues generated by TV and broadband internet started growing again.

The revenues from mobile services also decreased, by 4.4% to EUR 78.8 million, mainly as a result of the impact of the transition of the IT platforms effective the fourth quarter of 2018, which led to a number of disconnections during the second part of last year. Revenue stabilization in mobile services is expected in the second half of this year. The revenues from convergent fixed-mobile services jumped by 30.2% year-on-year, amid a rising number of users for this segment: 802,500 customers at the end of the second quarter of this year (+34.4% year-on-year).

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