Telekom Austria, the majority shareholder of Bulgarias largest mobile phone operator MobilTel, continued to ride the...
Telekom Austria, the majority shareholder of Bulgarias largest mobile phone operator MobilTel, continued to ride the high earnings wave last year with a net income spike by 37.4 per cent against 2005 to EUR 561.8 million, the annual consolidated financial report of Telekom reads.
MobilTel was the main growth contributor to the mobile phone division, reporting a 16.8-per-cent year-on-year increase in revenues to EUR 2.902 billion.
The solid input of MobilTel, alongside other Telekom-owned players abroad, jacked up operating income to EUR 677.1 million, an increase by 23.2 per cent on the year.
MobilTel, in particular, was successful in tapping to unique customers. As of December 31 last year, the company had 4.3 million clients, an increase by 18.7 per cent against 2005. In the fourth quarter alone, the telco attracted 231,600 unique customers.
The strongest growth dynamics showed contract customers, whose count reached 1.6 million as of end-2006, an increase by 27.5 per cent versus 2005.
Mobile penetration during the period surged to 105.9 per cent, up from 79.5 per cent the year before.
MobilTel, however, narrowed its lead on the market following the November 2005 entry of a third mobile operator. As of the end of December last year, it controlled a 52.5-per-cent market share, down from 57.6 per cent the year before.
Margins per user were also on the decline over stronger competition on the market. While in end-December 2005 they stood at EUR 11.7, in end-December 2006 they came in at EUR 10.8.
The downward adjustment of call rates also came as a result of growing popularity of VoIP calls and the introduction of free minutes in return for a higher subscription fee. The host of reasons brought the number of paid minutes per subscriber to 56.2 minutes, a decline by 2.9 per cent versus 2005.