COMMENTARY: Very good results of Vipnet

Domestic telecom operator Vipnet has grown in all segments of its business in the first quarter, and this may also be due to the consolidation of Metronet's revenue that has been consolidated since February 1 when this domestic fixed-to-business telecom operator enters into consolidation.

Remember the results, in the first quarter of this year Vipnet earned EUR 98.4 million, with an increase of 11.2 percent of revenue. In the same period, profit before tax, amortization and depreciation (EBITDA) increased by as much as 21.3 percent to EUR 21.2 million. The EBITDA margin in the first quarter of this year was 21.5 percent.

Excluding Metronet's impact, Vipnet revenue grew by 5.9 percent in the first quarter of this year, while EBITDA increased by 9.4 percent.

These are very good results considering the fierce market competition on the domestic telecommunications market where Hrvatski Telekom and Vipnet compete with many new tariffs and offerings. In addition, with the acquisition of Metronet, and even before, Vipnet has already announced a stronger entry into the ICT service segment.

It is important for the company that the share of contract customers in the mobile segment is increasing as well, despite the decline in other parts of this segment, especially in case of customers without contract, i.e. prepaid customers, in Tomato brand and in the classic Vipnet Vipme both.

In the fixed telephony, revenue per customer line (ARPL) increased 28.8 percent to EUR 23.7 a month. All this shows that consolidation of Vipnet's business, as well as better market conditions, were good for the company. What the effect will be of the decline in roaming revenue, expected mid-June will, remains to be seen, but since Hrvatski Telekom and tele2 are already preparing for it is to be expected that the effect will not be too big.