Velcom revenues up 21.6% in Q2

19/07/2015

According to Telecompaper Belarus mobile operator Velcom reported second-quarter revenues up 21.6 percent year-on-year in local currency, as data growth and inflation-linked price increases in 2014 led to higher monthly fee and traffic revenues.

However, parent company Telekom Austria suffered from a negative forex effect of EUR 14.5 million due to the depreciation in the local currency, leading to a 1.1 percent fall in reported revenues to EUR 84.4 million.

As inflation in Belarus has now fallen below 100 percent, the company has stopped using hyperinflation accounting for its results there, instead relying on the average exchange rate for the period. Despite a 17.7 percent increase in operating expenses on a local currency basis, driven by higher maintenance and repair expenses due to further network roll-out and high forex dependency, comparable EBITDA still rose 4.5 percent in euros, to EUR 43.7 million.

Telekom said Velcom was still benefiting from high demand for data services thanks to its positioning as a premium operator with high network quality, but the recent ban on price increases and currency fluctuations were impacting results. Velcom's customer base was little changed over the three months, ending June at 3.976 million, while ARPU was up 0.7 percent on a sequential basis to EUR 5.8.

Useful links:

http://www.telecompaper.com/news/velcom-revenues-up-216-in-q2--1093064

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