VIVACOM 9-mo Profit up 43% Y/Y29 Oct 2010
VIVACOM 9-mo Profit up 43% Y/Y
Telco’s report shows stable revenue and higher profit margin
SOFIA, October 29, 2010 – Bulgaria’s leading telecommunications company VIVACOM reported a 43% year-on-year rise in its profit for the first nine months of 2010. The company’s report showed a significant rise in the consolidated profit – 82% up to 106.7 million BGN, stable revenue from telecom services and higher profit margin. The revenue from mobile services grew by 30% on the year to 228.1 million BGN.
The higher revenue from mobile services, resulting from the increased client base, almost offset the lower fixed line traffic. So far, VIVACOM is the only operator reporting a positive balance from numbers ported into its network. Statistics have shown that the telco is the most preferred operator among subscribers who have decided to move to another provider in search for better conditions. Since the start of the number portability process over 50 000 users have chosen VIVACOM’s network, despite the obstacles created by some big operators.
VIVACOM also reported the biggest rise in the number of new subscribers.
The rise in the third quarter revenue was mostly due to the growing popularity of converged services. VIVACOM has set up a trend, which was followed by the rest of the operators, to offer a universal service which includes delivering all types of telecommunication to the client through a single line and one provider. That trend was strengthened at the end of the summer with the launch of a digital TV service through satellite (DTH) as the sales results so far beat the company’s expectations.
At the end of August the telco wrapped up a deal on the sale of 50% of the National Unit Radio and TV Stations (NURTS) to the international financial investor Mancelord Limited. The priority of the newly set up joint venture will be the development of NURTS’s TV and radio transmission infrastructure aiming to turn the company into an important player on Bulgaria’s digital transmission market and into a nationwide multiplex services provider.
VIVACOM continues to invest in its DSL network with the aim its ADSL service to cover more than 90% of the population, reaching even the smallest places in the country. Currently the operator is the largest ISP on national level with over 23% market share. The telco will also invest in expanding its portfolio of Internet services in order to meet the increasing demand for high-speed traffic. The expectations are that the customers will be able to use Internet of up to 100Mbps, both separately and bundled with other telecom services. To attract new customers and strengthen its market presence, VIVACOM continues to expand its 3G network.
VIVACOM is the trademark of the Bulgarian Telecommunications Company AD (BTC), Bulgaria’s incumbent telecoms operator. The company offers a full range of telecom services – fixed and mobile telephony, broadband Internet and data transfer. It has the country’s largest and best-developed telecom infrastructure. VIVACOM’s converged services are available in over 1 000 outlets of the operator and its dealers throughout Bulgaria. For more information about VIVACOM and its products and services, please call 123 or visit www.vivacom.bg
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