Vipnet’s Revenues Increase Thanks to Fixed Services

The transformation program and turnaround in commercial operations, particularly in the fixed telephony segment, have stabilized Vipnet’s revenues, which ended the past year with 371.3 million euros in revenue, a decrease of 1.8 percent compared to 2014.

Last year’s regulatory burdens and increased fees for the frequency sector created negative effects for all mobile operators, including Vipnet, which forced the company to implement strict cost control amounting to 20 million euros. This transformation program and turnaround in commercial operations, particularly in the fixed telephony segment, have stabilized Vipnet’s revenues, which ended the past year with 371.3 million euros in revenue, a decrease of 1.8 percent compared to 2014.

However, the end of the year did bring some recovery, said Jiří Dvorjančanský, CEO of Vipnet, highlighting that revenues in the fourth quarter were 0.8 percent higher than in the same period two years ago. Consolidated EBITDA has also stabilized at 83 million euros. Although it decreased by 1.5 percent compared to 2014, it increased by 53.5 percent in the fourth quarter compared to the same period two years ago, driven by organic growth.

The majority of revenues still comes from the mobile segment, although the number of users, primarily prepaid services, fell by 0.4 percent. The average revenue per user is 11.3 euros. The number of fixed users increased by 28.9 percent, and the average revenue per line increased by 2.9 percent to 22 euros. The number of fixed broadband lines, fixed telephony services, and users in the TV segment is also growing. Overall, in the fixed segment, revenue increased by 21.9 percent in 2015 compared to 2014.

– Vipnet invested almost all of its profit last year, 72.4 million euros, mainly in further expanding 4G+/LTE and fixed networks, 3.5 percent more than two years ago – said Dvorjančanský, emphasizing that the company laid 4,000 kilometers of its own intercity and urban fiber optics last year, while the acquisition of Amis increased the number of users by 23,000, continuing the consolidation of the Croatian telecommunications market.

In the mobile segment, Vipnet invested more than 18 million euros in the acquisition of two frequency blocks, enabling the development and implementation of the latest 4G+/LTE technology.

– The year 2016 will be a year of positive perspective thanks to the continuous growth in data traffic consumption – concluded Vipnet.