Telekom Romania posts EBITDA growth and stable revenues in Q2 2020

Telekom Romania group announces key performance indicators for the second quarter of 2020 showing nearly stable revenues and a continued increase in EBITDA YoY.

In Q2 2020, the consolidated revenues were impacted by the ongoing global COVID-19 pandemic – similar to other operators in EU – as travel restrictions reduced roaming and visitor revenues, while temporary closure of key points of sales negatively affected handset sales. This impact was nearly fully compensated through an increase in revenues from the company’s ICT & wholesale segments, leading consolidated revenues to 228.9 mln. €, a slight decline of 1% compared to the same period in 2019.

Total mobile revenues declined by 9.2% compared to Q2 2019, to 93.8 mln. €. This was driven by a reduction in termination fees for mobile networks imposed by the regulator, and is partially due to lower traffic from roaming and international visitors during the COVID-19 related travel restrictions in Q2 2020. Moreover, during the lock-down, as part of the country’s state of emergency, a third of the company’s retail shops, especially in large malls, were closed.

The customer base of the strategically important Fixed-Mobile-Convergence (FMC) segment continued its increase in Q2 2020 with 9.4% compared to the same period in the previous year, now reaching 881k subscribers, and further reaffirming Telekom Romania’s market leadership in this segment.

Total Fixed Revenues amounted to 121.1 mln. € in Q2 2020, a YoY increase of 7.2%, especially driven by strong growth in the company’s ICT segment with an increase of 25.1% and the Wholesale business, which grew by 21%, overcompensating a contraction of 6.6% in Retail Fixed Revenues. The voice business showed signs of stabilization, with revenues remaining stable compared to the previous two quarter at 14.3 mln. €, helped by the increase in FMC customers.