Globul Q3’2013 Customer Base Growing 4.3%

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Two months after Telenor acquired 100% of GLOBUL and GERMANOS shares for 717m EUR, the business indicators of the companies remain quite stable supported by a 4.3% growth in the active customer base compared to prior year.
In the third quarter of 2013, the market remained voice centric with traditional services accounting for the majority of the revenues, but GLOBUL data revenues grew healthily by 44% compared to a year ago. As of the end of Q3’2013, market penetration was estimated be close to 150%.
GLOBUL’s total revenue for Q3’2013 decreased by 2.8%, compared to the same period last year (both periods adjusted for changes in accounting treatment) mainly as a result of the declining mobile termination rate (MTR) as set forth by the regulator from 1 July 2012. Revenues for Q3’2013, excluding the impact of MTR regulation, were 0.3% above the same period of prior year.
Service revenues decreased by 5.5% in Q3’2013, mainly driven by the MTR regulation – excluding that effect, service revenues for Q3’2013 were 2.1% below prior year, mainly due to the price pressure in the business segment.
Excluding the impact of post-acquisition accounting adjustments, GLOBUL’s comparable earnings before interest, taxes, depreciation and amortization (EBITDA) for Q3’2013 decreased by 6.4% compared to Q3’2012, while the EBITDA margin decreased by 1.4pp compared to prior year. Excluding the MTR regulation impact, Q3’2013 EBITDA was 3.9% below the same period prior year.
GLOBUL’s postpaid active customer base further continued its growth, reaching almost 2.7 million, up by 6.4% year-on-year, thus representing about 68% of the company’s 3.9 million-strong active client base. This figure, as per Telenor Group definitions, excludes pre-paid customers that have been inactive for over 90 days, as well as machine-to-machine (M2M) SIMs. Despite market trends regarding customers’ prepaid to postpaid migration through innovative offers, GLOBUL also managed to keep its prepaid active customer base in line with Q3’2012.
GLOBUL’s mobile broadband subscriber base increased by 69% on a yearly basis in Q3’2013, while fixed-telephony services continued their stable growth with a subscriber base of over 240,000.
Blended active AMPU for Q3’2013 stood at 173 min., or in line with Q3’2012, while blended active ARPU for Q3’2013 dropped to BGN 11.30, or 3.4% lower than the same period prior year, principally from the reduction in the termination rate.
Summary Financial Results for GLOBUL & Germanos for the 3 and 9 months ended September 30, 2013 & 2012.*

Mln. BGN 07-09.2013 07-09.2012 Change 01-09.2013 01-09.2012 Change
Total Revenues 173.9 178.9 -2.8% 505.7 558.3 -9.4%
EBITDA 63.8 68.1 -6.4% 182.5 208.1 -12.3%
EBITDA margin 36.7% 38.1% -1.4pp 36.1% 37.3% -1.2pp

*Total figures are after intragroup eliminations, adjusted for changes in accounting treatment.

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