Rental income +18.1% and results of asset management +19.1%. Occupancy rate at record 96.8%.
Robust balance sheet: net LTV of 43.0%, liquid funds of EUR 345.1 million at year-end 2019.
Immofinanz net profit rose by 61.9% to EUR 352.1 million and goes hand in hand with a solid financial position: cash and cash equivalents total EUR 345.1 million.
In order to strengthen this very good cash position, an unsecured revolving credit facility of EUR 100 million was concluded at the end of March 2020.
The results of asset management improved by 19.1% to EUR 207.3 million (2018: EUR 174.0 million).
The results of property development totalled EUR -12.4 million (2018: EUR -4.3 million) and were influenced, among others, by higher construction costs for development projects and expenses for real estate inventories.
As a consequence, the operating profit (EBIT) more than doubled to EUR 345.6 million (2018: EUR 159.1 million).
The SIMMO investment represented the main component in 2019 (EUR 76.9 million). Financial results were again positive and amounted to EUR 4.5 million (2018: EUR 44.2 million).
Net profit rose by 61.9% to EUR 352.1 million in 2019 (2018: EUR 217.5 million). Basic earnings per share equalled EUR 3.37 (2018: EUR 1.97) and diluted earnings per share EUR 3.03 (2018: EUR 1.80).
Record occupancy level
The real estate portfolio included 213 properties with a combined carrying amount of approximately EUR 5.1 billion as of 31 December 2019. Most of these properties – 92.7% or EUR 4.7 billion – are standing investments.
Acquisitions and completions led to an increase of more than EUR 1.0 billion or 27.7% in the standing investment portfolio during the past year.
The occupancy rate reached a record level of 96.8% (31 December 2018: 95.8%). The gross return equalled 6.2% based on IFRS rental income and 6.5% based on invoiced rents.
Nearly three-quarters (73%) of CFOs surveyed in all countries express great concern about the potential impact of the coronavirus on their business, with most (80%) expecting a decrease in revenue, according to PwC COVID-19 CFO Pulse, conducted among more than 800 CFOs in 21 countries.
When assessing potential financial actions to help mitigate the effects of the coronavirus, most CFO are considering cost containment measures. Thus 77% considering implementing cost reduction, 65% deferring or cancelling planned investments and 48% changing company financing plans.
Nearly half (45%) of CFOs say their company plans to take advantage of government support programmes offered in response to COVID-19. The most common types of support they are considering are tax payment deferral and extension of tax deadlines.
In terms of workforce, CFOs in all countries expect a range of consequences for the employees: 42% of respondents expect to introduce furloughs in the coming month, and 28% anticipate layoffs.
If the COVID-19 crisis were to end immediately, 56% of CFOs expect a return to ‘business as usual’ within three months.
Other conclusions of the PwC COVID-19 CFO Pulsereport
CFOs are most concerned about global recession (71%), along with the financial effects of the coronavirus on their company’s operations (70%), decrease in consumer confidence reducing consumption (39%), supply chain issues (31%) and effects on our workforce or reduction in productivity (30%).
Of those CFOs considering changes to their investment strategy, most (80%) plan to reduce general CapEx investments. Other potential reductions could come in operations (60%) and workforce (55%).
Relatively few CFOs indicate they will cut spending on digital transformation (21%) and cybersecurity or privacy (5%).
Only 9% view it as an isolated challenge not currently having a major impact on their business.
Relatively few CFOs named difficulties with funding (18%), insufficient information to make good decisions (15%) and cybersecurity (6% )among their top concerns related to the coronavirus.
CFOs in Germany, Denmark and Switzerland expressed relatively less concern about the pandemic’s potential impact on their business and are also more sure-footed about their organisation’s ability to bounce back. They also show less inclination to avail themselves of government support programmes.
The survey was conducted on 14 April among 824 CFOs in Armenia, Brazil, Colombia, the Czech Republic, Denmark, France, Germany, Greece, Ireland, Japan, Kazakhstan, Mexico, Middle East, Netherlands, Philippines, Portugal, Singapore, Sweden, Switzerland, Thailand and the US.
73% of global executives expect COVID-19 to have a severe impact on the global economy;
Over half (52%) are having to reconfigure operations, as vulnerabilities in supply chains are exposed;
54% of respondents expect a longer period of slower economic recovery extending into 2021.
Business leaders are focussing on navigating the immediate impact that COVID-19 has across supply chains, revenue and profitability, while reconfiguring capital allocation and M&A plans for the post-crisis world, according to the 22nd Edition of the EY Global Capital Confidence Barometer (CCB22).
Almost three-quarters (73%) of respondents to CCB22, a survey of more than 2,900 C-Suite executives globally, expect COVID-19 to have a severe impact on the global economy in the form of supply chain disruption, as well as declining consumption.
At the same time, executives are reviewing their operating models in response to the crisis. The increasing shutdown of activity in many parts of the world has exposed vulnerabilities in many companies’ supply chains, with over half (52%) taking steps to change their current set up and 41% investing in accelerating automation.
With just under half of global business leaders (49%) reporting profit margins that are either the same or lower than two years ago even before the current crisis, the vast majority of companies (95%) are bracing for further downward pressures on margins as the global economy slows.
Preparing for what comes next
Many companies (72%) already had major transformation initiatives underway, triggered as a result of pressure on revenue targets and to meet profitability goals, according to CCB respondents.
The majority (72%) are also planning to conduct more regular strategy and portfolio reviews once some normality has returned, executives say that they will focus on prioritizing changes in new investments in digital and technology (43%) and capital allocation across their portfolio (42%).
Post-crisis recovery points to transformation through M&A
Despite boardrooms focusing on an unprecedented global health emergency, executives are also planning their future beyond the crisis. While 54% of respondents expect a ‘u’ shaped recovery period of slower economic activity extending into 2021, 38% see a ‘v’ shaped recovery and a return to normal economic activity in Q3 this year.
Just 8% foresee an ‘L’ shape recovery – a sustained recession period until economic activity returns in 2022.
With the majority of companies assuming a recovery in the medium-term, the intention to actively pursue M&A in the next 12 months remains at the elevated levels (56%) seen throughout this current deal cycle. As a result of COVID-19, global executives say they will focus more on a target’s business resilience when evaluating a transaction (38%) and are prepared to see valuations come down (39%).
At first, the COVID-19 epidemic in China only affected a limited number of value chains – but it has since turned into a global pandemic.
Its repercussions have created a double shock – supply and demand – that is affecting a large number of industries in all over the world. The uniqueness of this crisis makes comparisons with the previous ones useless, as they all had financial origins (e.g. global credit crisis of 2008-09, great depression of 1929). The question is no longer which countries and sectors of activity will be affected by this shock, but rather which few will be spared.
The shock could be even more violent in emerging economies: in addition to managing the pandemic, which will be more difficult for them, they are also facing the fall in oil prices, as well as capital outflows that have quadrupled compared to their 2008 levels.
In this context, Coface forecasts that 2020 will see the global economy’s first recession since 2009, with a growth rate of -1.3% (after +2.5% in 2019). Coface also expects recessions in 68 countries (vs only 11 last year), world trade to fall by 4.3% this year (after a -0.4% drop in 2019), and a 25% worldwide increase in business failures (compared to our previous January forecast of +2%).
The largest increase in business failures since 2009: +25% expected in 2020
Companies’ credit risk will be very high even in a “best-case” scenario, where economic activity gradually restarts in the third quarter of the year, and there is no second wave of the coronavirus epidemic in the second half of 2020.
This trend in business failures would affect the United States (+39%) and all the main Western European economies (+18%): Germany (+11%), France (+15%), United Kingdom (+33%), Italy (+18%) and Spain (+22%). The shock could be even more violent in emerging economies: in addition to managing the pandemic, which will be more difficult for them, they are also facing the fall in oil prices, as well as capital outflows that have quadrupled compared to their 2008 level.
International trade volume to drop for the 2nd consecutive year; a possible modification of goods international trade structure?
The risks weighing on the forecast of a 4.3% decline of world trade in volume in 2020 are downward, as the numerous border closure announcements are not taken into account in Coface’s forecasting model (model based on oil prices, shipping costs, confidence of manufacturing companies in the United States, and Korean exports as explanatory variables).
In the longer term, the COVID-19 crisis could also have consequences on the structure of global value chains.The main source of companies’ vulnerability in the current context is their heavy dependence on a reduced number of suppliers located in a few, or even a single country. Therefore, increasing these numbers to anticipate possible supply chain disruptions will now be a priority for companies.
Most sectors affected, although some are spared
For businesses, the sudden confinement measures taken by governments in more than 40 countries to stem the expansion of the COVID-19 virus, representing over half of the world’s population, have had immediate consequences.
These measures have resulted in a supply shock unlike any observed during previous major crises. The initial shock was not due to a financial crisis, but related to the real economy: people cannot work, and companies are experiencing disruptions to intermediate goods supply.
Tourism, hotels, restaurants, leisure, and transport are badly affected, as are almost all specialised distributions segments and most of the manufacturing sectors (excluding the agri-food industry). Other service sectors have been much less affected: telecommunications, water, and sanitation, to name a few.
Accompanied to this supply shock is an equally brutal demand shock. Many consumers are cancelling or postponing their expenditure on goods and services. In addition, household confidence is being weakened by the impact of confinement.
Durable consumer goods such as vehicles will likely be among the most punished by this shock. Other expenses, such as textiles and clothing, as well as electronics, are also likely to be reduced to almost zero.
At the other end of the spectrum, the consumption of agri-food and pharmaceutical products might actually benefit from this exceptional situation.
The pandemic’s political consequences
The most obvious consequence of the pandemic in the short term is the exacerbation of existing geopolitical tensions.
The risk of a new wave of protectionist measures, targeting particularly the key sectors of the new health and economic order (e.g. limiting exports of agri-food and/or pharmaceutical products, deemed vital) cannot be excluded. The continuation of the US-China “trade war” targeting strategic sectors, notably electronics, also remains a possibility. This could be reinforced by the presidential campaign in the United States, and/or by the event of rising in social protests in one of these two countries.
2019 marked for Sunlight the complete restoration of its production operations, as well as the expansion of its production capacity at its factory in N. Olvio, Xanthi, by 25%.
At the same time, Sunlight’s full comeback in the international industrial batteries markets, the establishment of the subsidiary Sunlight Batteries USA Inc. in America, and its entry into the dynamic market of smart lithium batteries, through the pioneer Li.ON FORCE series, were the most significant milestones for 2019.
The FY 2019 financials of the Group for 2019 were improved. Sunlight Group’s turnover amounted to € 180 million vs € 108 million in 2018. It is noted that the full restoration of the production capacity of the industrial batteries sector was achieved in July 2019.
The Group’s EBITDA stood at € 22.2 million vs. €19.7 million the previous year. Earnings before taxes of the group amounted to € 11.7 million vs. € 10.1 million, marking a small increase.
The first six months of 2019 Group’ s efforts focused on restoring production capacity as quickly as possible to the level before the fire incident, a goal that was not only achieved in record time (July 2019), but also overcome via the capacity expansion program by 25%.
During the same period, Sunlight achieved its full reinstatement in the international industrial batteries’ markets.
At the same time, Sunlight placed great emphasis on R&D. The Li.ON FORCE series of lithium smart batteries for Industrial Vehicles (EIVs), launched in 2019, incorporates Internet of Things and Machine Learning features.
With a fit-for-purpose approach and designed entirely by a specialized team of engineers, based in Xanthi, Sunlight completes its product range addressing effectively all industrial mobility requirements.
In addition, the other two production plants (recycling facility in Komotini and battery assembly facility in Verona, Italy), which are integral parts of the Sunlight value chain, continued their constant improvement in operations.
Finally, in December 2019, Sunlight proceeded with the establishment of a subsidiary in North Carolina, USA, Sunlight Batteries USA, with the aim of accelerating its expansion to the second largest market in the world.
The total value of the gross written premiums increased in 2019 by approximately 11%, sustained by a solid evolution in the Health, Property and Motor Hull Insurance lines;
The gross profit, according to IFRS reporting standards for consolidation purpose, was over 45 million lei;
The total amount of claims paid by the company was over 820 million lei.
Omniasig continued its sustainable development strategy in 2019 as well and maintained its ascending evolution from the recent years, registering an increase of approximately 11% of the gross written premiums, compared to the previous year.
In 2019, the company’s total value of the gross written premiums exceeded the amount of 1.3 billion lei while the registered gross profit, according to IFRS reporting standards for consolidation purpose, was over 45 million lei. The total amount of the claims paid by the company in the previous year was slightly over the 820 million lei.
An upward dynamic can be observed on the Health Insurance line, where the growth was over 30% compared to 2018. As a reaction to this positive evolution, the company quickly takes action in developing this segment, the most recent achievement being the launch of the new group health insurance called OMNI+, a new concept adapted to the market dynamics and to customers’ needs. The result emphasizes the fact that this segment becomes more and more a priority for OMNIASIG customers and that they understood the utility and necessity of this type of insurance.
In line with the company’s strategy regarding the development of the non-motor insurance lines, an ascending trend was also observed in the case of Property segment (Fire and Allied Perils line), where the total volume of the gross written premiums for 2019 increased by almost 8%, compared to the previous year.
On the motor insurance segment (Motor Hull and MTPL), the company marked a slight increase of the total volume of gross written premiums, compared to 2018, registering cumulatively on the two lines gross written premiums in the amount of over 880 million lei. The total amount of the claims paid on the motor insurance segment, Motor Hull and MTPL cumulatively, increased in 2019 by almost 20% compared to the previous year. The Motor Hull insurance segment recorded a significant evolution of over 15%, while on the MTPL line the volume of gross written premiums remained constant.
Regarding the travel insurances, the volume of gross written premiums in 2019 increased by over 25%, which shows a higher responsibility of consumers when it comes to holiday planning.
Total premium volume increases to around EUR 10.4 billion (+7.7%)
Profit (before taxes) rises to around EUR 522 million (+7.4%)
Combined ratio clearly improved to 95.4% (-0.6 percentage points)
Earnings per share significantly higher at EUR 2.59 (+27%)
Dividend increase to EUR 1.15 per share proposed (+15%)
A significant rise of 7.7% pushed total premiums written in 2019 above the EUR 10 billion threshold for the first time, to EUR 10,399.4 million. Without exception, all sectors recorded growth and contributed to the year-on-year increase in premiums of around EUR 742 million.
The other property and casualty and comprehensive motor business dominated with respect to absolute premium growth. Health insurance recorded the largest percentage increase of around 12%.
The non-life sector represents around 58% of the premium portfolio (motor third party liability, comprehensive motor, other property and casualty insurance), life insurance around 35% (regular premium, single premium products) and health insurance around 7%.
The largest premium gains were recorded in the segments Poland (EUR +234.2 million), Baltic states (EUR +124.5 million), Austria (EUR +103.4 million), Remaining CEE (EUR +72.2 million) and Czech Republic (EUR +61.6 million).
The Baltic States (+33.1%), Bulgaria (+30.7%), Poland (+26.1%) and Remaining CEE (+19.3%) segments stand out in terms of percentage premium growth. In the Remaining CEE segment, Ukraine (+58.2%), Bosnia-Herzegovina (+37.6%) and Serbia (+14.0%) recorded especially large premium growth.
Profit (before taxes) around EUR 522 million
In 2019, the target range for profit (before taxes) was EUR 500 to 520 million. At EUR 521.6 million, the profit (before taxes) was slightly above the target range and 7.4% higher than the result in the previous year. The increase in profit was due to a clear combined ratio improvement and, among other things, a significant increase in the profits contributed by Austria (EUR +37 million) and Poland (EUR +37 million).
This was offset by a small decrease in the financial result, mainly due to a decrease in the contribution from the non-profit societies resulting from the deconsolidation starting 31 July 2019, and the entire goodwill impairment in the Romania segment in the amount of EUR 108.8 million (previous year EUR 50.1 million).
In the course of the annual impairment test, the earnings expectations for Romania were further reduced due to the sustained difficult market situation.
With the exception of Romania, all segments earned profits (before taxes). 53% of the profit (before taxes) was achieved in the CEE region.
Cream skimmed from milk may be called “sweet cream” to distinguish it from cream skimmed from whey, a by-product of cheese-making. Whey cream has a lower fat content and tastes more salty, tangy and “cheesy”. In many countries, cream is usually sold partially fermented: sour cream, crème fraîche, and so on. Both forms have many culinary uses in sweet, bitter, salty and tangy dishes.
Produced by cattle (particularly Jersey cattle) grazing on natural pasture often contains some natural carotenoid pigments derived from the plants they eat; this gives it a slightly yellow tone, hence the name of the yellowish-white color: cream. This is also the origin of butters yellow color. Cream from goats milk, water buffalo milk, or from cows fed indoors on grain or grain-based pellets, is white.
Cream is used as an ingredient in many foods, including ice cream, many sauces, soups, stews, puddings, and some custard bases, and is also used for cakes. Whipped cream is served as a topping on ice cream sundaes, milkshakes, lassi, eggnog, sweet pies, strawberries, blueberries or peaches. Irish cream is an alcoholic liqueur which blends cream with whiskey, and often honey, wine, or coffee. Cream is also used in Indian curries such as masala dishes.
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Both single and double cream (see Types for definitions) can be used in cooking. Double cream or full-fat crème fraîche are often used when cream is added to a hot sauce, to prevent any problem with it separating or “splitting”. Double cream can be thinned with milk to make an approximation of single cream.
The French word crème denotes not only dairy cream, but also other thick liquids such as sweet and savory custards, which are normally made with milk, not cream.
Different grades of cream are distinguished by their fat content, whether they have been heat-treated, whipped, and so on. In many jurisdictions, there are regulations for each type.
The Australia New Zealand Food Standards Code – Standard 2.5.2 – Defines cream as a milk product comparatively rich in fat, in the form of an emulsion of fat-in-skim milk, which can be obtained by separation from milk. Cream must contain no less than 350 g/kg (35%) milk fat.
Canadian cream definitions are similar to those used in the United States, except for “light cream”, which is very low-fat cream, usually with 5 or 6 percent butterfat.
Regulations allow cream to contain acidity regulators and stabilizers. For whipping cream, allowed additives include skim milk powder (0.25%), glucose solids (0.1%), calcium sulphate (0.005%), and xanthan gum (0.02%).
Russia, as well as other EAC countries, legally separates cream into two classes: normal (10–34% butterfat) and heavy (35–58%), but the industry has pretty much standardized around the following types:
Sphera’s consolidated sales reached RON 955 million (c. EUR 201 million) for the full year 2019, up 24%;
Q4 sales up 19% to RON 260 million;
Sales across Sphera brands increased 6.2% Y/Y in Q4 and 7.8% Y/Y for the full year 2019;
Restaurant operating profit jumped 26% Y/Y in Q4 and 20.5% Y/Y for the full year 2019;
Net profit rose 165% Y/Y for the full year 2019.
Sphera Franchise Group reports consolidated sales of RON 954.7 million (c. EUR 201 million) for the full year 2019, representing an increase of 23.8% compared to previous year, after a 19% increase in sales in Q4 2019, up to RON 260 million.
The main contributors were the 15.9%
growth in the sales of USFN Romania (KFC restaurants), compared to 2018, and
the 155% growth of USFN Italy (KFC restaurants in Italy). CFF (Taco Bell
restaurants) sales grew 171%, while ARS (Pizza Hut restaurants) sales advanced
7.3% Y/Y.
For the full-year 2019, sales across Sphera brands increased 7.8%, being mainly supported by a 9.2% advance for KFC Romania, a 16.2% increase for KFC Moldova and a 5.6% increase for KFC Italy. In Q4, sales across Sphera brands increased 6.2% compared to the same period of 2018.
For the full-year 2019, Sphera posted restaurant operating profit of RON 124.3 million, up 20.5% Y/Y, and a net profit of RON 64.2 million, up 165% Y/Y.
In Q4-2019, restaurant operating profit jumped 26% Y/Y to RON 36.1 million, while net profit reached 26.0 million compared with a loss of RON 8.1 million in Q4-2018.
Of the four fundamental interactions, gravitation is the dominant at astronomical length scales. Gravity effects are cumulative; by contrast, the effects of positive and negative charges tend to cancel one another, making electromagnetism relatively insignificant on astronomical length scales. The remaining two interactions, the weak and strong nuclear forces, decline very rapidly with distance; their effects are confined mainly to sub-atomic length scales.
This diagram shows Earth location in the universe on increasingly larger scales. The images, labeled along their left edge, increase in size from left to right, then from top to bottom.
The size of the universe is somewhat difficult to define. According to the general theory of relativity, far regions of space may never interact with ours even in the lifetime of the universe due to the finite speed of light and the ongoing expansion of space. For example, radio messages sent from Earth may never reach some regions of space, even if the universe were to exist forever: space may expand faster than light can traverse it.
Because we cannot observe space beyond the edge of the observable universe, it is unknown whether the size of the universe in its totality is finite or infinite.
Spacetimes are the arenas in which all physical events take place. The basic elements of spacetimes are events. In any given spacetime, an event is defined as a unique position at a unique time. A spacetime is the union of all events in the same way that a line is the union of all of its points, formally organized into a manifold.
Spacetime events are not absolutely defined spatially and temporally but rather are known to be relative to the motion of an observer. Minkowski space approximates the universe without gravity; the pseudo-Riemannian manifolds of general relativity describe spacetime with matter and gravity.
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An important parameter determining the future evolution of the universe theory is the density parameter, Omega, defined as the average matter density of the universe divided by a critical value of that density. This selects one of three possible geometries depending on whether is equal to, less than, or greater than 1. These are called, respectively, the flat, open and closed universes.
Observations, including the Cosmic Background Explorer, Wilkinson Microwave Anisotropy Probe, and Planck maps of the CMB, suggest that the universe is infinite in extent with a finite age, as described by the Friedmann–Lemaître–Robertson–Walker (FLRW) models.
Because we cannot observe space beyond the edge of the observable universe, it is unknown whether the size of the universe in its totality is finite or infinite.
The universe is composed almost completely of dark energy, dark matter, and ordinary matter. Other contents are electromagnetic radiation (estimated to constitute from 0.005% to close to 0.01% of the total mass-energy of the universe) and antimatter.
The observable universe is isotropic on scales significantly larger than superclusters, meaning that the statistical properties of the universe are the same in all directions as observed from Earth. The universe is bathed in highly isotropic microwave radiation that corresponds to a thermal equilibrium blackbody spectrum of roughly 2.72548 kelvins.
Two proposed forms for dark energy are the cosmological constant, a constant energy density filling space homogeneously, and scalar fields such as quintessence or moduli, dynamic quantities whose energy density can vary in time and space. Contributions from scalar fields that are constant in space are usually also included in the cosmological constant. The cosmological constant can be formulated to be equivalent to vacuum energy. Scalar fields having only a slight amount of spatial inhomogeneity would be difficult to distinguish from a cosmological constant.
Ordinary matter commonly exists in four states: solid, liquid, gas, and plasma. However, advances in experimental techniques have revealed other previously theoretical phases, such as Bose–Einstein condensates and fermionic condensates.
A photon is the quantum of light and all other forms of electromagnetic radiation. It is the force carrier for the electromagnetic force, even when static via virtual photons. The effects of this force are easily observable at the microscopic and at the macroscopic level because the photon has zero rest mass; this allows long distance interactions. Like all elementary particles, photons are currently best explained by quantum mechanics and exhibit wave–particle duality, exhibiting properties of waves and of particles.
With the assumption of the cosmological principle that the universe is homogeneous and isotropic everywhere, a specific solution of the field equations that describes the universe is the metric tensor called the metric,
Some speculative theories have proposed that our universe is but one of a set of disconnected universes, collectively denoted as the multiverse, challenging or enhancing more limited definitions of the universe. Scientific multiverse models are distinct from concepts such as alternate planes of consciousness and simulated reality.
The Indian philosopher Kanada, founder of the Vaisheshika school, developed a notion of atomism and proposed that light and heat were varieties of the same substance.
Telekom Romania announced the main performance indicators for the fourth quarter of 2019, ended on the 31st of December 2019, according to the data released by OTE Group.
For the full year 2019 all major financial
indicators – Revenue, EBITDA and adjusted Free Cash Flow (FCF) showed a year-on-year
growth for the first time in four years. In 2019 the consolidated revenues of
Telekom Romania increased by 5%, to 980 mil. EUR. At the same time, adjusted EBITDA
before IFRS16 increased by 5% to 144 mil. EUR, thus growing for four quarters
in a row. Adjusted Free Cash Flow, corrected for one-off historical payments to
OTE Group, also registered relevant growth of over 55 mil. EUR in 2019, becoming
positive for the first time in three years.
Revenue growth was fueled mostly by the company’s
core business. Fixed revenues increased by 11% to 479 mil. EUR in 2019,
supported by strong growth in the ICT segment, exceeding 110%, as well as that
of wholesale services with more than 20%. At the same time, broadband & TV services
registered a slight growth in revenues of more than 2%. FMC revenues have grown
yoy with approximately 30%. Additionally,
the newly launched product Smart WIFI generated high demand.
In mobile revenues, Telekom had 4 consecutive quarters of growth in 2019 reflected in the overall yearly growth, significantly driven by large ICT transactions in Q4.
Costs declined by more than 3%
On the cost side, compared to 2018, total OPEX (Operating Expenses) declined by more than 3% and shows a further improved run rate in Q4. This saving and the better cash flow are a direct effect of the company’s ongoing transformation program ”Cash for Growth”, which has driven a significant number of initiatives to successful completion.
As part of this transformation process, the number of full time employees went down by 21% yoy from 6,356 in 2018 to 5,029 in 2019, through automation, simplification and focus on customer-facing units.
Revenues: 289 mil. EUR
The promising results for the full year
2019 also reflect a good performance of the last quarter of the year. In Q4 2019 the group’s consolidated revenues continued the upward trend
from the previous quarters, reaching 289 mil. EUR, a 19% increase against Q4
2018, heavily driven by major ICT related projects.
Adjusted
EBITDA before IFRS 16 increased by 109% against Q4 2018, reaching 51.6 mil.
euro in Q4 2019. This came as a result of improved top line and cost
performance paired with a favourable comparison base
The strategically important FMC segment continued to grow through 2019, recording a 72% yoy increase in revenues in Q4 2019, now totalling over 846,000 users and extending Telekom’s market leadership in this segment.
Revenues from retail fixed services declined by 5% in Q4 2019 against Q4 2018, to 55.4 mil. EUR. This was driven by a declining customer base especially on the traditional fixed line voice and DTH business, which was only partially offset by an increase in Average Revenue per User (ARPU).
1.3 mil. users for Telekom TV
The TV services segment reached 1.3 mil. users in Q4 2019, an 8% decline
– mainly on DTH – vs. Q4 2018, which was offset via diversified content
packaging and an increase in ARPU, so that revenues stayed stable.
The
number of broadband service subscribers had a slight decline compared to Q4
2018, reaching 1.1 million users. Simultaneously, broadband revenues in Q4 2019
recorded an 8% increase against Q4 2018, which was the result of the company’s
push towards higher-value customers, resulting in an increase in ARPU.
Mobile services revenues further stabilized in Q4 2019 totalling 75 mil.
EUR, with only a slight decrease of less than 1% over 2018, a result which
supported the successful completion of a major ICT project. A positive trend
can be seen on mobile data revenues, with a continued growth of 11% in Q4 2019
compared to Q4 2018.
Vodafone revenues increased by 2% compared to the same period of last year(2018).
Total customer base reached 11 million people.
Mobile average revenue per user for the year ended December 31st, 2019 was EUR 5,1.
Following the acquisition of UPC Romania starting with 31st of July 2019, the results for this quarter include also the reported figures of the cable company.
Murielle Lorilloux, CEO Vodafone Romania, stated: ”In the past quarter, we have continued to invest in our networks and launched new and enriched mobile and fixed and TV offers for all our customers. They can now enjoy, as a result of our commitment to provide innovative technologies like 4K, a complete portfolio of sports competition within UPC packages and Vodafone TV. We will continue the integration process as we will soon finalize the legal merger of the two companies and will become one entity, step that will allow us to further strengthen our fixed-mobile capability. Moreover, we will continue to engage with the authorities to ensure the right balance in terms of security, coverage and investments for supporting the digitalization of the Romanian society, while looking carefully at the conditions of the market in order to have a good and healthy competition.”
Vodafone Romania is a subsidiary of Vodafone Group, which is one of the world’s leading telecoms and technology service providers.
