April 25 (SeeNews) - Telekom Austria said on Tuesday its Macedonian subsidiary one.Vip posted a 3.2% lower EBITDA (earnings before interest, taxes, depreciation and amortisation) of 5.9 million euro ($6.4 million) in the first three months of the year, compared to the first quarter of 2016.
one.Vip's total revenues declined 6.2% year-on-year to 27.3 million euro mostly due to a drop in interconnection revenues in both the mobile and the fixed-line segments, Telekom Austria said in its financial statement for the first quarter.
"In the mobile business this results from a mobile termination rate cut in December 2016, while interconnection revenues in the fixed-line business declined due to reduced international traffic revenues," Telekom Austria explained.
one.Vip's total costs fell 7% to 21.4 million euro, driven by lower interconnection expenses as well as savings in the technical area and in administrative expenses.
The number of one.Vip's subscribers dropped 3.5% on the year to 1.1 million as of end-March.
"Competition in the mobile market remained intense, driven by convergent bundle offers and price erosion in the business segment," the parent company said.
one.Vip competes with T-Mobile Macedonia, part of Deutsche Telekom, on a market of some two million. Macedonian customers continued to move from multiple prepaid to single contract subscriptions, Telekom Austria said.
($ = 0.9195 euro)