Telekom Romania continues its 2019 growth story in Q3

Q3’19 was a very successful quarter for us, because we not only continued on our growth path, started at the beginning of the year, but also managed to achieve better results YoY.

Our EBITDA grew for the third consecutive quarter in a row, reaching 36.1 mn, up 21.1% compared to the previous quarter. Q3’18 EBITDA was heavily impacted by a one-time real estate transaction. Without this effect, our YoY EBITDA grew considerably.

Consolidated revenues of Telekom Romania group grew 7.4% YoY to €243.5 mn, continuing the consistent upward trend already started at the beginning of 2019.

Revenues from Retail Fixed Services amounted to EUR 56.4mn, down 6% YoY, mainly as a result of lower revenues from traditional fixed voice services, which were partially compensated by a 2.1% improvement in TV revenues. However, our strategically important FMC business continues to be a success story, increasing subscribers 25.5% and revenues by 32.4% YoY, leading to a customer base of over 822,000.

In our Mobile segment service revenues continued to increase compared to the previous two quarters to a total of €79.8 mn. We are also seeing an improvement in our ARPUs, coming from a higher share of postpaid customers in our base. This is a clear success of our new Mobil Nelimitat Cartela offer, migrating prepaid customers to postpaid through a digital customer journey and in combination with new prominent retail partners. 

Finally, the company continued to significantly improve in operating free cash flow YoY, providing us with more cash to fund our growth investments. This is the direct result of the disciplined cash management program running since Q3’18 and the ongoing success of cost transformation, which generate a continued and sustainable improvement in operational efficiency.

The continuous positive results show that we are on the right track. We will continue our cash & cost discipline and use the resulting financial health as springboard for further growth in the market.

Link to Telekom Romania Press Release

Link to OTE press release