- Mobile operations revenues remained stable, at 438.5 million Euros, down 0.2% in 2015 vs 2014;
- Mobile broadband service revenues registered a positive evolution, with an advance of 14% in 2015 vs 2014;
- Telekom Romania maintained a constant investment level over the last 5 years, of around 150 million EURO per year;
- Fixed operations revenues slightly decreased by almost 1% in 2015 compared with 2014 reflecting mainly the continuous decrease of fixed voiced segment;
- ProForma EBITDA decreased in 2015 by 26% compared with 2014, affected by higher TV content and handsets 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;
- ProForma EBITDA margin reached 87.1 million Euros in 2015, decreasing compared with 2014 by 17.5%, affected by increased investment and development costs.
MARKET PRESENCE AND COMMERCIAL PERFORMANCE
- ANCOM‘s data regarding the fixed telephony services show a downward trend both in the number of access lines and, respectively, in the number of subscribers, as well as in the volume of the voice traffic achieved;
- The number of mobile subscription based users continued to rise to 10.7 million (+8%), whereas the active prepaid cards number fell by 5% (to 12.5 million);
- The penetration rate of mobile telephony services per 100 inhabitants reached 116.4% by the end of 2015;
- By the end of 2015, in Romania there were 14.7 million mobile broadband connections, growing by 22% per year;
- Mobile broadband internet penetration rate per 100 inhabitants reached 74%, an increase by more than 13 p.p. compared to 2014;
- The very strong market competition exclusively on tariff is gradually slowing down, with competitors focusing on exclusive content, increasing broadband access speeds or introducing fixed-mobile convergent FMC bundles;
- TV market is almost saturated in terms of customers (95% penetration), but TV services growth is possible through relevant content packaging and the right technology mix;
- The mobile market is saturated and the operators had to deepen their relationship with existing customers to maximize monetization opportunities;
- Since the T brand launch in September 2014 and until the end of December 2015, Telekom Romania gained 208,000 fixedmobile convergent customers;
- At the end of 2015, Telekom Romania 4G network covered 57% of the urban population and 32.4% of the total population;
- On the fixed segment, Telekom Romania‘s FTTx footprint covered 1.4 million households in 25 Romanian cities.
Procurement economic implications
- 74% of Telekom Romania total supplier spending in 2015 has been realized with local suppliers (suppliers based in Romania);
- In 2015, local suppliers represented 86.2% of total number of suppliers in Telekom Romania supply chain;
- The contracts with all suppliers include specific clauses or annexes on health and safety, anti-corruption, security, environment protection, confidentiality and compliance with Telekom Romania Supplier Code of Conduct.
- The operational integration of mobile and fixed operations is complete and is reflected commercially in the launch of MagentaONE integrated offers;
- 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;
- On the business fix segment, Telekom Romania Communications maintained its leading position both in terms of RGUs and revenues;
- At the end of Q4 2015, the total mobile 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;
- 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;
- Mobile broadband business customer base increased by 22% in Q4 2015 vs. Q4 2014 and by 25.5% on ayearly basis;
- In March 2015 Telekom Romania and Smart Sun Solutions ―planted the first digital tree in Romania in Timisoara, offering free solar generated electricity for charging mobile devices and free WI-FI.
- 100% of fixed operations employees are part of collective labour agreement;
- In 2015, an employee union has been formed within Telekom Romania Mobile Communication but no collective working agreement was concluded by the end of the year;
- At the end of 2015, the total workforce of our mobile and fix operation was of 6,368 full time employees, slightly decreasing with 1.9% compared with 2014;
- Male to female remuneration ratio is 1:1 for both mobile and fixed operations;
- In 2015, 86 women and 12 men from our fixed and mobile operations took parental leave;
- No employee resigned during child care leave with pay, and all men and women, returned to their normal duties.
Employee engagement and development
- In 2015 we launched „One Intranet” – the first integrated Intranet platform, YAM groups & campaigns, info e-mails, weekly electronic newsletters, internal campaigns and activations, SMS messages, live streaming and informative leaflets and posters; § 26% of the employees took part in internal contests organized to promote corporate and commercial initiatives;
- 1,000 employees participated in the first edition of Development Days – a new concept of training, through which the internal trainers team, along with famous training company, presented the employees concepts and new ways to approach it;
- In 2015, more than 100 employees have been certified on specific technical topics: CISCO, PMP, ACCA, ITIL etc.
- In 2015 our compliance training programme reached a total of 3,141 employees and it was focused on three key compliance topics: Anti-Corruption, Anti-Trust and Data Privacy on Telecommunication Secrecy;
- During 2015, Telekom Romania was not part of any incidents of non-compliance with regulations regarding money laundering and corruption;
- In 2015, 4,176 employees were trained on information security aspects;
- With the occasion of Earth Hour, through our internal newsletter, we have informed more than 7,000 employees about the importance, benefits and best practices concerning energy saving and we have used our SMS service to urge our clients to save energy;
- In 2015, 1,541 employees participated in E -learning and classroom training course on data protection and privacy of communications.
Employee health and safety
- There were no fatal accidents in our fixed and mobile operations in 2015;
- In 2015, 338 jobs have been reassessed from the perspective of H&S risk perspective (107 mobile operations employees, 231 fixed operations employees);
- 198 H&S internal reports issued, analyzed and closed;
- Both companies have successful recertified their OHSAS management systems;
- In 2015 no occupational disease have been identified, no working accidents recorded for mobile operations an 4 working accidents have been recorded for fixed operations;
- Both companies‘ establishes Health and Safety Committees which are directly involved in setting the H&S objectives and programmes. On a yearly basis, the management issues the ―Report of the General Director– CEO to the Health & Safety Committee presenting the overview of the H&S management system performance;
- During the reporting period, Telecom Romania participated in 11 inspections from local authorities on emergency situations resulting in 1 financial penalty of 2,222 EURO.
Social engagement and contribution
- In 2015 we have extended our social engagement and contribution with 600,000 EURO through Fundatia Telekom and our own platform Teimplici.ro, through internal scholarship and volunteering programs, through partnering in external relevant projects and by using our services and infrastructure to support social causes and initiatives;
- In 2015 , through teimplici.ro platform we have directly financed projects amounting 70,000 EURO, addressing Education, Health, Sport, Environment, Development and Innovation;
- From the funds raised during the 2015 edition of the ―Sport is good campaign, the Telekom Romania Foundation acq uired the medicine Asparaginaza, necessary to children with leukaemia from Fundeni Institute;
- Via Telekom Romania Foundation, the taxes raised at the 5 km race of Brasov International Marathon powered by Telekom Romania but also 10% from the value of the competitive races (marathon, relay, half marathon and 10 km), were donated to the Association „Cristal children, in order to cover the expenses necessary for the therapy sessions for 10 children with autism;
- Telekom Romania Foundation together with Telekom Romania developed a crowd funding campaign meant to help 8 NGOs to raise funds in order to implement their social, educational and environmental projects by using Telekom Romania phone and SMS lines;
- Through ‘Together for Romania‘s athletes’ initiative, the Telekom Romania Foundation, in partnership with the Romanian Olympic Foundation, granted financial support of 100 Euros/month to 5 ex-athletes with serious health problems.
- During 2015, together with Cisco and Webhit, part of 5 national educational projects funded through EU funds, we provided technical support for implementation of 20 telepresence centers in schools and 16 centers where telepresence is complemented by a software application, providing students in remote areas access to high-quality content and facilitating contact with teachers in big cities;
- Over 650 students have applied for the ―Telekom Scholarship Programme 2015 edition. 20 applications have been selected for the final evaluation, out of which 10 were awarded with 1 full year scholarship of more than 10.000 LEI (around 2,200 euro) each;
- During 2015, within our STEP project (co-financed from the European Social Fund through the Sectorial and Operation Program Development of Human Resources 2007-2013. Invest in People ), 525 students benefited from career counselling services, 255 students benefited from internship and obtained an internship certificate and a qualification on their university specific, 9,000 applied for an internship, 1,500 were selected and benefited from the experience of 100 mentors;
- Since September 2015 Telekom Romania has been running the fourth round of the Coder Dojo Bucharest North Workshops, with over 50 children and youngsters aged 7 to 16, studying programming and computer-assisted electronics based on the Arduino development platform;
- Over 50,000 persons (active participants or supporters) took part at 89 sports classes held by 115 national and international trainers, during the Biggest Sports Hour event in Bucharest, Brașov and Mamaia. During the events, over 1000 people benefited of free medical tests;
- In October 2015, volunteers from Telekom Romania together with volunteers of ViitorPlus Association planted a total of 1,800 seedlings of lime and English oak on an area of 10,000 square meters in the village of Draganesti-Vlasca, Teleorman County.
- In 2015 TUV Hellas certified the Telekom Romania Information Security Management System based on ISO 27001;
- On Quarter to quarter basis, the TRI*M index (Customer Satisfaction & Loyalty study) maintained at similar level for mobile residential customers and registered a 3 points decrease for residential fixed customers while for business customers,, TRI*M index maintained at similar level for mobile customers while for fixed it decreased 4 points;
- During 2015 we have received 3 external complaints regarding data privacy, out of which 2 have been determined as noncompliant with national regulation and resulted in a total of 7,778 EURO financial penalty.
- In 2015 our total CO2 emissions, direct and indirect (scope 1 + scope2) dropped with 23.9% compared with 2014, from 122,581.1 t CO2 -eq to 93,317.97 t CO2 -eq. One of the most relevant aspects which determined the reduction was the introduction of energy efficiency measures in the telecommunication network.
- In 2015 our total energy consumption for mobile and fix operations was 286.35 GWh, 1.75% lower than in 2014 (291.39 GWh);
- Through our energy efficiency and conservation programmes we managed to achieve energy savings of 5.93 GWh, out of which, 4.25 GWh of electricity and 1.67 GWh of district heating and fuel consumption;
- In 2015, our total electricity consumption (mobile + fix operations) was of 215.08 GWh, 1.7% lower compared with 2014 (218.89 GWh);
- In 2014 and 2015 we have restructured and consolidation our commercial spaces, reducing their numbers and improving space usage efficiency in the existing ones, which lead to a direct reduction of electricity consumption of more than 10%;
- We continued the upgrade process of the mobile telecommunication network and the implementation of saving energy solutions and we managed to reduce the electricity consumption by almost 10% compared with 2014.
- Compared with 2014, we have managed to reduce the consumption of diesel associated with backup electricity generators in our buildings and base stations with 19.3%, leading also to a reduction of our direct CO2 emissions;
- In 2015 our fuel consumption decreased with almost 9% compared to 2014 based mainly on fleet restructuration both in term of numbers of cars, which decreased, and vehicle types. The average fuel consumption per kilometer within the fleet decreased also with 5.2%, from 0.071l/km in 2014 to 0.067 l/km in 2015;
- District heating is used only on our fix operations facilities and compared with 2014, the consumption increased slightly with 2%.
Water and other environmental aspects
- In 2015 our total water consumption increased with 3.88% compared with 2014, mainly driven by the increased consumption within mobile operations; § To improve the control of refrigerants and increase the efficiency of our cooling systems, we have implemented a clear maintenance and verification programme which allows us to detect failures and leakages;
- In 2015, at national level, we replenished under careful observation 2,029 kg of refrigerants (R134a, R407c, R410a, R427a);
- In 2015 we have received 3 external complains regarding the noise impact of our equipment. The complaints have been checked together with the Environmental Guard and generated a set of 10 corrective measures which have been implemented;
- In 2015 we had 31 base stations that were situated in protected areas. All our protected area sites are developed, installed and operated based on Environmental Impact Assessment studies approved by designated authorities;
- In 2015, there were performed 19 EMF measurements on Telekom Romania sites at the request of our external stakeholders. The measurements performed by ANCOM have not indicated levels exceeding the limits provided by the Order of the Minister of Public Health no. 1193/2006.
- Both our companies, Telekom Romania Communications and Telekom Romania Mobile Communications have implemented environmental management systems certified according to ISO 14001:2008 standard in 2014, respectively 2015;
- No environmental incidents or accidence have been recorded during the reporting period;
- 1,950 employees were trained on environmental topics, in 2015, within our fixed and mobile operations.