Vivacom’s revenue down in 1H14, while profit surges to BGN19m

18 Aug 2014

Bulgarian telecoms company Vivacom (formerly Bulgarian Telecommunications Company, BTC) has released its financial results for the six months ended 30 June 2014, reporting a 1.6% year-on-year decrease in revenues, to BGN392.631 million (USD268.87 million). Of this figure, BGN207.6 million was generated by Vivacom’s mobile unit, while fixed services contributed BGN185.0 million to the total. The overall decline was mainly attributed to a drop in revenue generated by outgoing traffic, as a result of lower termination rates and competitive pressure; a 7.4% decrease y-o-y in leased line sales and data transmissions; and a BGN34.2 million drop in interconnection revenue (to BGN19.2 million). Meanwhile, adjusted EBITDA for the six months under review reached BGN173.6 million, up 7.6% y-o-y from BGN161.3 million reported in H1 2013, while net profit increased almost three-fold, from BGN7.306 million to BGN19.050 million.

In operational terms, Vivacom’s subscriber base reached 2.677 million users at end-June 2014, a 10.2% improvement on the figure reported in the corresponding period of 2013. The company said that the annual growth in its customer base was mainly due to ‘superior network quality’, with its GSM/GPRS/EDGE network covering 99.99% of the population at that date, while 3G services are available to 99.81% of the country’s inhabitants. Further, Vivacom reported a 4.2% increase in the number of broadband subscriber accounts, to 335,000, mainly driven by an increase in the number of fibre-to-the-x (FTTx) connections.

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