Subscriber base in Croatia grows by 9.9%
Vipnet, the second largest mobile operator in Croatia, increased its subscriber base by 9.9% to 2.6 million customers at the end of September 2009.
Market share increases to 42.9%
At the end of the third quarter 2009 the mobile penetration rate in Croatia was 137.8% compared to 127.1% at the end of 3Q 08. Vipnet’s market share increased to 42.9% in 3Q 09 from 42.3% in 3Q 08.
ARPU declined by 19.2% to EUR 12. 6 in 3Q 09 compared to EUR 15.6 in 3Q 08 as a higher contract subscriber base partly compensated for lower prices and mobile termination rates as well as a lower usage per subscriber. Average minutes of use charged per subscriber declined by 12.6% to 80.5 minutes.
Revenues reflect price reductions as well as cuts in roaming and interconnection tariffs
Vipnet’s revenues declined by 9.5% to EUR 142.8 million in 3Q 09 compared to EUR 157.8 million in 3Q 08 due to price reductions for voice, data, roaming and termination as well as lower usage while roaming traffic increased. Weaker foreign currency translation impacted revenues negatively by EUR 2.7 million.
Cost control demonstrated by 8.0% reduction of operating expenses
Operating expenses were cut by 8.0% and partly compensated for lower revenues which led to a 11.3% lower EBITDA of EUR 65.0 million in 3Q 09. As of August 1, 2009 a 6% tax on revenues from mobile services was introduced. Currency translation impacted EBITDA by EUR 1.2 million. Weaker FX rates, the burden from the tax on mobile services and the impact from lower roaming rates also account for the decline in EBITDA.
Operating income of Vipnet decreased by 13.9% to EUR 48.2 million in 3Q 09 compared to the same period of the previous year, reflecting lower revenues.