PODGORICA (Montenegro), April 26 (SeeNews) – Montenegro's Crnogorski Telekom [MNG:TECG] said its net profit declined 77% year-on-year to 600,000 euro ($652,740) in the first quarter of 2017.
The revenue of the company decreased by 8% to 19.8 million euro due to the negative effects of regulatory changes, increased competition in the fixed access market, accelerated Fixed Mobile Substitution (FMS) and decreased incoming traffic, the televommunications company Telekom said in a statement on Tuesday.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) decreased 17% to 6.1 million euro, while the number of mobile subscribers rose 6% to 353,000, Crnogorski Telekom said.
"It is evident that the telecommunications market faces a number of challenges to be answered, in accordance with which we need to make certain changes to improve the overall business," CEO Milija Zekovic said.
However, Crnogorski Telekom is on the right track and as of the end of March, the company's 4G network covered 95% of the Montenegrin population.
Following are details on Crnogorski Telekom's financial performance (in euro):
|
Q1'17 |
Q1'16 |
Revenue |
19.8 mln |
21.5 mln |
EBITDA |
6.1 mln |
7.3 mln |
Net profit |
600,000 |
2.6 mln |
Hungary's Magyar Telekom controls 76.53% of Crnogorski Telekom, which had a market capitalisation of 119.6 million euro at the end of 2016.
($ = 0.919207 euro)