Bulgarian telecom BTC's 9-mo net profit halves on higher expenses

Bulgarian telecom BTC's 9-mo net profit halves on higher expenses Author: Vivacom. License: All rights reserved.

SOFIA (Bulgaria), November 14 (SeeNews) - Bulgarian telecommunications group BTC said on Monday its net profit in the first nine months of the year decreased to 6.1 million levs ($3.35 million/3.1 million euro) from 12.5 million levs in the same period of 2015 mainly due to higher amortisation, depreciation and interconnect expenses.

The telecom's adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) climbed 6.2% on the year, reaching 188.8 million levs in January-September, while its adjusted EBITDA fell 6.9% to 240.4 million levs, BTC said in its third quarter financial report.

BTC, which operates under the brand name Vivacom, recorded total revenues of 650.4 million levs in the first nine months, up 4.1% year-on-year, on the back of increased bundling and more services provided to customers, as well as from net subscriber gains.

BTC's revenue from mobile services rose 5.8% on the year to 375.6 million levs in the first nine months, whereas fixed-line services generated 3.5% less revenue of 249.8 million levs. NURTS' revenue was 33.2 million levs. BTC acquired radio and TV transmission services provider NURTS in July 2015.

The number of Vivacom's mobile subscribers increased by an annual 3.9% to 3.14 million as at end-September, with the share of post-paid subscriptions rising 0.4% for the period, while pre-paid subscriptions fell 2.2%. On the other hand, the number of fixed-line subscribers dropped 12.0% to 957,000.

Capital expenditures totalled 150.7 million levs in the first nine months, which included 110.1 million levs related to network activities, mainly for investment in its mobile radio access network (LTE and SRAN), fixed core network and TV platform.

The company's 4G network, launched in May, covered 75.3% of the Bulgarian population at end-September.

On the mobile segment, BTC competes with the Bulgarian units of Norway's Telenor and Telekom Austria, as well as with 4G operator Max.

Bulgaria has a population of around 7.2 million.

(1 euro=1.95583 levs)

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