Mobiltel revenues up 3.1% in Q4 2017 to EUR 112.1 mln

Bulgarian operator Mobiltel reported revenues up 3.1 percent in Q4 2017 year-on-year to EUR 112.1 million due to increased fixed-line service revenues as well as higher equipment revenues and higher other operating income. EBITDA rose by 2.5 percent to EUR 25.8 million, driven by higher fixed-line service revenues and a better equipment margin due to lower subsidies. Equipment revenues grew due to lower subsidies. The operator's number of mobile subscribers declined by 3.2 percent year-on-year in the quarter of 2017 to 3.977 million.

Total mobile subscribers decreased mainly due to losses in the prepaid segment, highly impacted by the national regulation for a limited number of prepaid card activations per person, effective since 1 July 2017.

Smartphone and mobile broadband services continued to grow in Q4 2017 compared to Q4 2016 following the rise in demand for mobile data access. Total fixed-line revenue generating units (RGUs) decreased by 1.4 percent year-on-year to 1 million as the growth in TV and broadband could only partly compensate for the loss in fixed-line voice services.

ARPU is stable year-on-year at EUR 5.5. The re-pricing in the business segment and the negative regulatory effect of roaming was compensated by upselling activities in the residential segment.

Fixed-line service revenues increased, supported by the launch of the exclusive sports TV package and high demand for fixed-line corporate products as well as the growth in satellite TV RGUs. In the mobile business, higher visitor roaming revenues were not able to fully offset the decline in business revenues as well as customer roaming revenues.

The average monthly revenue per fixed line (ARPL) increased to EUR 11.9 in Q4 2017 from EUR 10.8 in Q4 2016, supported by the upselling of existing subscribers as well as the charging of exclusive sports content.

Total costs and expenses increased by 3.3 percent in a year-on-year comparison.