Download alfa reports second quarter 1997 results

EUROTEL BRATISLAVA REPORTS STRONG GROWTH IN NUMBER OF
CUSTOMERS AND REVENUE FOR THE FIRST HALF OF 2004
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1,740,082 mobile customers at the end of the first half of 2004, a 27% increase
over the same period in 2003
Mobile service revenues increased 24%, to Sk5.7 billion, for the first half of
2004
EBITDA increased 23%, to Sk2.7 billion, for the first half of 2004
Net income grew to a strong Sk1,123 million during the first half of 2004, as
compared to Sk665 million for the same period in 2003
Bratislava, Slovakia, August 13, 2004 – EuroTel Bratislava a.s. (“EuroTel,” the
“Company,” or “we”), a leading Slovak telecommunications company, today announced
that it ended the first half 2004 with 1,740,082 customers, a 27% increase over its
customer count at June 30, 2003. Our customer base as of June 30, 2004 was
comprised of 517,380 postpaid customers and 1,222,702 prepaid customers.
Net customer additions amounted to 126,606 for the first half of 2004, which represents
a 75% increase over the 72,531 net customer additions for the same period of last year.
Average monthly churn decreased slightly to 1.77% during the first half of 2004, as
compared to 1.80% for the same period in 2003.
EuroTel today also announced record earnings before interest, taxes, depreciation and
amortization (“EBITDA”) of Sk2,657 million (€66.5* million) for the six months ended
June 30, 2004. This represents a 23% improvement over EBITDA of Sk2,160 million
(€51.8* million) earned during the first six months of 2003. The Company’s EBITDA
margin (EBITDA divided by total revenues) amounted to 42.5% for the first half of 2004,
slightly exceeding the number for the same period in 2003.
Operating Performance
Developments in our total revenue were also extreme satisfactory, with an increase in
revenue for the first six months of the year of 22% to Sk6.3 billion. EuroTel’s recurring
service revenues of Sk5.9 billion for the first half of 2004 represent an increase of 23%
over the same period in 2003 that was primarily driven by growth in the number of both
postpaid and prepaid customers.
The blended average revenue per user (“ARPU”) decreased slightly by 2.6% from Sk582
to Sk567 in the first half of 2004, as compared to the first half of 2003. This decline in
ARPU is attributable to the fact that we experienced disproportionately strong growth in
the number of customers with moderate usage of mobile services and reduced demand
for premium services, as more such customers entered the market for mobile services.
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Unless otherwise noted, all monetary figures are in Slovak Crowns (Sk).
At June 30, 2004, €1 = Sk39.946. At June 30, 2003, €1 = Sk41.737.
(Source: National Bank of Slovakia) Euro amounts are presented as convenience translations only.
The Company reported an operating profit of Sk1,626 million for the first half of 2004, as
compared to an operating profit of Sk1,259 million for the same period of the previous
year. This increase of 29% in operating profit was primarily due to higher growth in
revenue as well as lower growth of operating expenses.
EuroTel recorded net income of Sk1,123 million for the first half of 2004, as compared to
net income of Sk665 million for the first half 2003.
On March 30, 2004, EuroTel refinanced its €175 million Senior Secured Notes due 2007
(the “Notes”). This early redemption was financed through local banks at markedly more
favorable conditions. Due to its size and applicable terms, this refinancing transaction
was considered a “benchmark transaction” for both the Slovak banking market and the
Central European telecommunications market in 2004.
In April 2004, Standard & Poor’s Rating Services raised its long-term corporate credit
rating for EuroTel to “BB” from “BB-”, outlook stable, as a result of Company’s
refinancing of its Euro-denominated Notes with debt denominated in Slovak crowns.
In June 2004, Moody’s Investors Service changed the outlook on its rating of EuroTel
from stable to positive. At the same time, Moody’s affirmed EuroTel’s “Ba2” senior
implied rating and assigned a “Ba2” rating to the Company’s Sk5.0 billion senior
unsecured credit facility due 2009.
EuroTel’s CEO, Robert Chvátal, stated: “Our first half results prove that growth in our
customer base has accelerated as compared to the same period of last year. We are
also very happy that the growth is to large extent fuelled by increase in number of our
postpaid customers. Such positive development is the result of EuroTel’s focus on
quality of sales and customer service as well as the continuous improvements to its
network coverage.
Ivan Bošňák, EuroTel’s Chief Financial Officer, noted: “In the first half of 2004, EuroTel
continued its strong performance, driven by growth in its customer base. We have
appropriate financing in place, our margins are stable, we generated positive free cash
flow in the last six months and were happy to hear positive news about our rating from
both Moody’s and Standard & Poor’s.”
Other Developments
SuperSpeed. In June 2004, EuroTel introduced this new data service, which is based on
EDGE technology and significantly increases data transfer speeds and improves network
capacity for data transfer.
EASY Recharge at OMV Outlets. Since June 2004, our prepaid customers can
recharge their prepaid EASY phone credits at OMV petrol stations located throughout the
country.
EuroTel Ideal. In February 2004, EuroTel launched this new, flexible rate plan, which
enables customers to create a customized bundle of monthly minutes, SMS and MMS to
fit their individual needs.
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Operating Highlights - First Half of 2004
as of June 30,
2004
2003
% Change
1,740,082
1,370,993
26.9%
126,606
72,531
74.6%
Average Monthly Churn
1.77%
1.80%
(1.7)%
Monthly ARPU
Sk567
Sk582
(2.6)%
1,282
1,188
7.9%
Total Mobile Customers
Net Mobile Customer Additions
Ending Number of Employees*
*
Includes both full-time employees and part-time employees, expressed as number of full-time equivalent
employees, based on a 40 hour work week.
Slovak Crowns (in millions)
as of June 30,
2004
2003
% Change
Total Revenues
6,255
5,138
21.7%
Recurring Service Revenues
5,933
4,840
22.6%
EBITDA
2,657
2,160
23.0%
42.5%
42.0%
1,626
1,259
29.2%
1,123
665
68.9%
EBITDA Margin
(EBITDA / Total Revenues)
Operating Profit
Net Income
-
For more information, contact:
Ivan Bošňák
Chief Financial Officer
+421-2-4955-5114
Juraj Droba
Corporate Affairs Director
+421-2-4955-5034
[email protected]
[email protected]
Or consult our web page at: www.eurotel.sk
EuroTel (www.eurotel.sk) is a leading telecommunications company in the Slovak Republic,
offering both mobile telecommunications services and managed data network services. As of
June 30, 2004, the Company’s GSM and NMT mobile networks covered approximately 99% of
the Slovak Republic’s population of 5.4 million. EuroTel is owned 51% by Slovak Telecom
(www.telecom.sk),
a subsidiary of Deutsche Telekom AG (Frankfurt, amtlicher
Handel: DTE / NYSE: DT; www.telekom.de), and 49% by Atlantic West B.V., a joint venture
between subsidiaries of Verizon Communications (NYSE: VZ; www.verizon.com) and AT&T
Wireless Services, Inc. (NYSE: AWE; www.attws.com).
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