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Telecom
May 2019 www.intellinews.com I Page 22
“Our investments in the last year of which a substantial part was directed in the network, led to an increase in depreciation and a year-on-year decline in net income in the first quarter of 2019,”
noted the company’s chief financial officer and Tomas Kouril, adding that the y/y Ebitda growth confirmed that the decision to invest into growth areas was strategically correct.
Russia's mobile phone VEON operator delivers sold earnings in 1Q19, reiterates guidance
One of Russia's "big four" mobile operators VEON (formerly VimpelCom) showed 6% revenue decline to $2.2bn and Ebitda slip to 4% to $0.82bn at 39% margin in the first quarter of 2019.
The company's results in 1Q19 were affected
by weaker currencies in Russian and Pakistan, which if unaccounted for, would make 7% and 10% revenues and Ebitda growth, respectively.
Previously in the fourth quarter VEON reported unexciting results. But in the first quarter of 2019 "the numbers came in ahead of our expectations on EBITDA thanks to better profitability in Ukraine and more significant cut in HQ costs; this still suggests a decline y/y due to currency headwinds in the countries of operation," BCS Global Markets commented on May 3.
T-Mobile in Czech Republic saw growth of CZK6.7bn
in 1Q19
T-Mobile in the Czech Republic increased its sales by 2.1% year-on-year to CZK6.7bn in 1Q19. EBITDA decreased by 0.4% to CZK2.84bn, the company reported.
The number of mobile customers increased by 0.5% to 6.19mn, of whom 4.03mn were contract
Country-wise, the international major VEON showed good performance in local currency
in Ukraine, Pakistan and (less expected) in Bangladesh, weak in Uzbekistan (taxation change) and Algeria (competition), moderate in Russia, BCS GM summed up.
In Russia, revenue grew 4% in the reporting quarter, with the key growth driver being doubling of the hand- set sales, mobile service revenue growth of 1%. Com- pany's Ebitda in Russia was up 1% to 37% margin.
VEON's total net income stood at $0.56bn (versus $0.1 bn loss a year ago) due to "above-mentioned one-off, lower interest expense and 1Q18 affected by loss in Italian unit (Veon sold its stake last year)." The free cash flow of the company (FCF) remained stable at $0.38bn versus $0.33bn in 1Q18.
customers. The number of fixed-line internet users increased by 45% y/y to 274,000. The number of television service users increased by 112% to 101,000.
“Our long-term objective is to become the first choice for all customers using mobile and fixed-