In a very competitive market, the financial results reported by Telekom Romania Communications for 2015 show revenues slightly decreasing by almost 1%. Key areas such as TV and integrated offers continued to generate growth for the company. The level of revenues reflects mainly the continuous decrease of fixed voiced segment, with corresponding revenues lower by 17% at the end of 2015. ProForma EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization), excluding impact of restructuring plans, was 118.4 million Euros, down by 26% compared with 2014.
The results were affected by higher TV content and TV sets related costs, as a result of company’s focus on providing improved and seamless customer experience for both fixed and mobile segments. The convergent services generated a more than double increase of mobile revenues in Q4 2015 compared to Q4 2014, with corresponding increase in the number of MagentaONE customers, which reached over 208,000, up by more than 48,000 since Q3 2015.
Telekom Romania Mobile Communications overall revenues in the year remained stable, at 438.5 million Euros, down 0.2% yoy. Mobile broadband service revenues continued to register a positive evolution, with an advance by 14% yoy. At the end of Q4 2015, the total customer base (including Zapp) was of 5.754 million. The overall postpaid customer base increased by 3.7% in 2015 vs 2014, accounting for 29% of total customer base. In addition, Telekom Romania Mobile Communications registered an increase of 16 pp in the weight of smartphones out of the total terminals sold in 2015 versus 2014.
In Q4 of 2015, despite intense competition, the business segment continued to register positive performance, with 7.7% increase of business customers base yoy. Mobile data proved a significant growth driver on this segment, as reflected by the increase of mobile broadband business customer base by 22% in Q4 2015 vs Q4 2014 and by 25.5% on a yearly basis. ProForma EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization, without redundancy cost) margin reached 20% in FY 2015, down by 4 pp versus FY 2014. ProForma EBITDA amounted to 87.1 million Euros in 2015.