Vipnet Records Lower Profit

Vipnet’s revenue in the first nine months of this year increased by 2.6 percent to 402.5 million euros compared to the first nine months of 2007. During the same period, operating profit (EBITDA) decreased by 3.1 percent to 164.9 million euros.

Profit before interest and taxes (EBIT) amounted to 111.1 million euros, which is a decrease of 3.4 percent. The reason for this is lower revenue following the expiration of the national roaming contract and reduced revenue from foreign guests on the Vip network. Vipnet’s business results for the first nine months of 2008 were announced today by Telekom Austria Group in Vienna, along with results for the mobile and fixed segments of Telekom Austria Group.

In the third quarter of 2008, Vipnet achieved good results thanks to a 14.2 percent increase in the number of users. Revenues from voice and data traffic as well as monthly fees increased, while discounts on sold mobile devices were lower. Data revenues increased by 33 percent in the third quarter of 2008 compared to the third quarter of 2007. Monthly revenue per user in the third quarter decreased by four percent to 15.6 euros, compared to 16.3 euros in the third quarter of 2007, as the impact of reduced prices was offset by higher consumption and a larger share of postpaid users (22.1 percent in the third quarter of 2008 compared to 20.2 percent in the third quarter of 2007).

– Vipnet’s market share is now 42.3 percent, which is 0.9 percent lower compared to the end of September 2007. Monthly revenue per user is 15 euros, which is a decrease of 3.2 percent compared to the first nine months of last year, said Mladen Pejković, CEO of Vipnet. He adds that Vipnet significantly invested in new technologies and coverage in the third quarter to provide users with the most innovative products. Their wireless internet services are currently used by 70 thousand users. Vipnet’s CEO stated that the global crisis will not affect their business. – People may buy fewer mobile phones, but I believe they will not stop talking on existing devices. One possible scenario from which mobile operators could benefit during a crisis is that there will be less travel and more phone calls, concludes Pejković.  (M.N.)